FCRA ComplianceFebruary 2025
Understanding Adverse Action Requirements Under the FCRA
When an employer intends to take adverse action - such as rescinding a job offer or declining to hire - based on information in a background check report, the FCRA requires a specific two-step process. First, the employer must provide the applicant with a pre-adverse action notice along with a copy of the report and the Summary of Rights. After a reasonable waiting period (typically five business days), the employer may then issue the final adverse action notice. Failure to follow this process can expose employers to significant legal liability.
Regulatory UpdateJanuary 2025
FTC Enforcement Trends: What Employers Need to Know
The Federal Trade Commission (FTC) continues to actively enforce the FCRA against both consumer reporting agencies and employers. Recent enforcement actions have focused on improper permissible purpose claims, failure to maintain reasonable procedures for accuracy, and inadequate adverse action processes. Employers should review their background check procedures annually to ensure ongoing compliance with FTC guidance.
State Law UpdateDecember 2024
Ban-the-Box and Fair Chance Laws: A Growing Patchwork
More than 35 states and 150 cities and counties have now enacted some form of ban-the-box or fair chance hiring legislation. These laws generally restrict when employers can ask about criminal history during the hiring process, with many requiring that a conditional offer of employment be extended before a background check is initiated. Employers operating in multiple jurisdictions must navigate a complex and evolving set of requirements. SaffHire's compliance team monitors these developments and updates our processes accordingly.
EEOC GuidanceNovember 2024
EEOC Guidance on Criminal Records: The Individualized Assessment
The Equal Employment Opportunity Commission (EEOC) has long maintained that blanket exclusion policies based on criminal history can violate Title VII of the Civil Rights Act if they have a disparate impact on protected classes. The EEOC recommends that employers conduct an individualized assessment of each applicant's criminal record, considering the nature of the crime, the time elapsed since the offense, and the nature of the job. SaffHire's reports are designed to provide the information needed to conduct this assessment.
Best PracticesOctober 2024
Maintaining a Written Background Check Policy
One of the most effective steps an employer can take to protect itself from FCRA liability is to maintain a written background check policy. This policy should define which positions require a background check, what types of searches are conducted, how results are evaluated, and what the adverse action process looks like. A well-documented policy demonstrates that the employer applies its screening criteria consistently and in a non-discriminatory manner.
Consumer RightsSeptember 2024
Applicant Rights Under the FCRA: A Summary for Employers
Applicants have significant rights under the FCRA that employers must respect. These include the right to be notified when a consumer report is being obtained, the right to receive a copy of the report and the Summary of Rights before adverse action is taken, and the right to dispute inaccurate or incomplete information. Employers who fail to honor these rights face potential civil liability and FTC enforcement action.
