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New Background Check Requirements Take Effect

Friday, October 12, 2018

(North American Meat Institute)

Effective September 21, 2018, employers who use third-party vendors to obtain background checks must utilize an updated version of the “Summary of Your Rights” disclosure, as required by the Fair Credit Reporting Act (FCRA). The new disclosure includes language about an applicant’s or employee’s right to place a security freeze or fraud alert on his or her credit report from a consumer reporting agency. Applicants and employees already had the right to institute a security freeze on their credit reports, but the updated disclosure informs them of their existing rights.

An article published by Faegre Baker Daniels details ways employers can comply with the new requirements. The article also summarizes the implications from a recent U.S. Court of Appeals for the Seventh Circuit ruling, which makes clear an applicant or employee can file suit if an employer makes an adverse decision based on a background check report, and fails to provide a copy of the report and the “Summary of Your Rights” disclosure to the employee or applicant.

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