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Rules For Employment Purposes
LAWDOG is intended to assist in the understanding of basic concepts. See Disclaimer. Always obtain legal advice from legal professionals.
User Must Disclose, Obtain Authorization & Certify
A user may not procure, or cause to be procured, a consumer report for "Employment Purposes", unless the prospective user makes a disclosure to the consumer, obtains the consent of the consumer, and makes certifications to the consumer reporting agency. The term "Employment Purposes" when used in connection with a consumer report means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee. See Section 603 (h) of the Fair Credit Reporting Act, as amended, reproduced here for illustration purposes only.
Disclosure To Consumer & Written Authorization By User
The prospective user must make a written disclosure to the consumer before the report is obtained. The disclosure document, which must consist solely of this disclosure, must clearly and conspicuously disclose that a consumer report will be obtained for employment purposes. The prospective user must obtain the written authorization from the consumer to obtain the report. See Section 604 (b) of the Fair Credit Reporting Act, as amended, reproduced here for illustration purposes only.
Certification To Agency
After making this disclosure, and obtaining the written authorization, the user must certify to the consumer reporting agency that the user:
(a) has complied with the written disclosure requirement, and has obtained the written authorization of the consumer, and
(b) that the information will not be used in violation of any applicable federal or state equal employment opportunity law or regulation, and
(c) that the user will, before taking any adverse action based upon the report, provide a copy of the report and a summary of the consumer's rights to the consumer. "Adverse action" regarding employment means "a denial of employment or any other decision for employment purposes that adversely affects any current or prospective employee"
FTC Summary of Consumer Rights
The summary of consumer rights referred to above must be provided to the user by the consumer reporting agency along with the consumer report to be used for employment purposes. The content and form of the required notice will be supplied by the FTC pursuant to a portion of Section 609. A copy of the FTC Summary of Consumer Rights is reproduced reproduced here for illustration purposes only. A portion of the FTC Prescribed Notice To Users is reproduced here for illustration purposes only. But also see Section 603 (o), reproduced here, which has special rules for certain persons who regularly procure employees or employment opportunities. Always discuss actual cases with your actual legal advisor or legal department.
A copy of The Fair Credit Reporting Act, As Amended, and a copy of the FTC Official Staff Commentary to the Fair Credit Reporting Act are included under "Fair Credit Reporting Resources", available from LAWDOG Credit Reporting Center, or here. Use browser return button to return. Read Notices, Caution and Disclaimer.
