for employment purposes, and state what
categories of information such reports
may contain. The types of information
included in the reports will vary by
employer, as different employers request
and obtain different information. For
example, one employer might obtain
criminal background and employment
history, while another might obtain
driving records and credit history. The
disclosure should reflect the scope
accordingly, and succinctly.
be included in a standalone document,
consisting only of:
employee) permitting the employer to
obtain the consumer reports.
document contain anything other than
the disclosure and the authorization.
consumer report, additional
disclosure requirements apply
a consumer report or portion thereof
in which information on a consumer's
character, general reputation, personal
characteristics or mode of living is
obtained through personal interviews
with neighbors, friends or associates of
the consumer about whom the report
is made or with others with whom
he is acquainted or who may have
knowledge concerning any such items of
information. 15 U.S.C. § 1681a(e).
When using a consumer reporting
agency to obtain an investigative
consumer report, the FCRA contains
additional disclosure requirements
beyond what is required when obtaining
a non-investigative consumer report.
Specifically, no later than three days after
requesting an investigative consumer
accurately disclose in writing (mailed
or otherwise delivered to the applicant/
employee) that:
employee's character, general
reputation, personal characteristics
and mode of living, whichever are
applicable, may be obtained; and
reasonable time after receiving the
instant disclosure, disclosure of the
nature and scope of the investigation,
and a written summary of rights
under FCRA (discussed in Point 4,
infra).
certify to the consumer reporting agency
that it has made the above disclosures,
and that the employer will comply with
a statutory requirement that obliges the
employer to provide a complete and
accurate disclosure of the nature and
scope of the investigation upon written
request. See 15 U.S.C. § 1681d(b).
While employers commonly include
the above investigative consumer report
disclosures as part of the ordinary
consumer report disclosure addressed in
Point 1 above, there is some risk in doing
so; extra information can quickly chip
away at clarity and conspicuousness.
employee is a requirement for obtaining
a consumer report from a consumer
reporting agency. As stated in 15 U.S.C.
§ 1681b(b)(2)(A)(ii), "a person may not
procure a consumer report, or cause a
consumer repot to be procured... [for
employment purposes]... unless....
the consumer has authorized in writing
(which authorization may be made on the
[document containing the disclosure])
the procurement of the report by that
person."
report until the applicant/employee
has provided written authorization. As
mentioned, this authorization may be
contained on the same document as the
disclosure addressed in Point 1, but that
document can otherwise contain no other
information.
adverse action notices
on the information contained in a
consumer report, employers must provide
a pre-adverse action notice to the
applicant/employee, including:
Under the Fair Credit Reporting
Act."
there is no specific requirement
regarding the duration between a pre-
adverse action notice and the moment
adverse action is taken (i.e., when
the employer rejects the applicant
for employment), the Federal Trade
Commission has opined that, while each
case is fact-dependent, a period of five
business days between the notice and the
action may be reasonable. (See www.ftc.
gov/policy/advisory-opinions/advisory-
opinion-weisberg-06-27-97.)
When actually taking adverse action
based on the information contained in a
consumer report, employers must again
notify the applicant/employee. The
notice must include:
number of the consumer reporting
agency;
reporting agency did not make
the decision to take the adverse
action and is unable to provide the
consumer the specific reasons why
the adverse action was taken; and