Employers and Credit Report Checks
(Published in the Fall/Winter of 2007 Newsletter)
Elsewhere in this letter, we discuss a consumer’s rights involving their credit reports. Here, we address whether an employer has a right to obtain and review an employee’s credit report. The simple answer is “yes.” An employer may obtain a credit report before or after the date of hire. In any case, the employer must follow the requirements set forth in the Fair Credit Reporting Act (“FCRA”). The employer must obtain the employee’s prior written authorization and also make specific written disclosures to the employee as well. Before an employer may take an action that is adverse to the employee (i.e., termination, refusal to hire, etc.) based in whole or in part on the credit report, the employer must provide the employee with a copy of the credit report as well as a description of the consumer’s rights. The employer must also supply the employee with certain additional contact information about the credit agency from which the report was obtained. Interestingly, an employer may obtain a one-time authorization which it may repeatedly use at any time during the course of employment. Any employer interested in more detailed information, including the necessary FCRA disclosure and authorization forms, should contact us today.
Menges, McLaughlin, & Kalasnik P.C.
www.YourLawFirmForLife.com
NOTE: The contents of this Newsletter are not intended to be, nor should they be taken as, specific legal advice as each situation is different. Please contact a lawyer with any questions you may have.
The Employment Law attorneys at Menges, McLaughlin & Kalasnik, P.C. can help. Contact us now by calling, toll free, 1-866-464-5297.