Effective January 1, 2013, employers must use a revised form to comply with their notice requirements under the federal Fair Credit Reporting Act ("FCRA").
By way of background, FCRA requires employers who use third-party consumer reporting agencies to conduct background checks on their applicants and/or employees to notify such individuals of their rights under FCRA. Despite its name, FCRA addresses not only third-party consumer reporting agencies' gathering and reporting of information about an individual's credit, but also about other background information, including but not limited to criminal and motor vehicle records, education, licenses, and employment history.
Under FCRA, employers have several notice requirements, including that they must: 1) provide applicants/employees with a clear written disclosure that a consumer report may be obtained for employment purposes; 2) certify to consumer reporting agencies that they have fully complied with FCRA's disclosure requirements; 3) provide notice to applicants/employees of contemplated adverse action based on a consumer report, together with a description in writing of the applicant's/ employee's rights under FCRA ("Summary of Rights Under the Fair Credit Reporting Act"); and 4) provide notice to applicants/ employees of an adverse action determination (such as rejection of an applicant or discharge of an employee) based on a consumer report, with various additional information.
The above-referenced "Summary of Rights Under the Fair Credit Reporting Act" form has now been revised. The essence of the revision is to reflect the shift in responsibility for interpreting FCRA from the Federal Trade Commission ("FTC") to the newly created Consumer Financial Protection Bureau ("CFPB") -- specifically that information about rights under the FCRA can be found at www.consumerfinance.gov/learnmore or by contacting the CFPB instead of contacting the FTC. Two additional forms required of consumer reporting agencies -- "Notice to Users of Consumer Reports," which is given by consumer reporting agencies to employers, and "Notice to Furnishers of Information," which is given by consumer reporting agencies to others providing information to them -- were similarly revised.
The revised forms may be found in Appendices K, M and N to 12 C.F.R. part 1022, the regulations interpreting FCRA. The form applicable to employers may be found at the following link: http://ecfr.gpoaccess.gov/graphics/pdfs/er21de11.019.pdf.
Employers who need assistance with the complex requirements of FCRA should contact one of Day Pitney's Labor and Employment attorneys.
Day Pitney Alert
Day Pitney Alert
Day Pitney Alert
Heather Weine Brochin and Gregory Tabakman authored an article entitled "Third Circuit Advises that Employer Must Pay Employees for Short Rest Breaks," which was published by the New Jersey Law Journal.
Day Pitney partner Francine Esposito will speak at the upcoming webinar "Workplace Leave Laws: Strategies to Navigate the Changing Landscape in the U.S." Taking place on Sept. 14 at 2 p.m., the webinar is the first in a series of webinars hosted by the Employment Law Alliance (ELA) on workplace leave laws around the globe.
John McLafferty was quoted in an article, "Employment Lawyers Leery of Bill Banning NDAs, Arbitration," published by Massachusetts Lawyers Weekly.
Heather Weine Brochin was quoted in an article, "Confidentiality Disqualifies Harassment Settlement Tax Deductions," published on the Society for Human Resource Management (SHRM) website.
John McLafferty was quoted in an article, "How Employers' Haunted House and Fright Night Went Way Wrong," published on the Society for Human Resource Management (SHRM) website.
Michael Furey was quoted in an article, "The Biggest New Jersey Cases of 2016," which was published in Law360.
Michael Furey was quoted in an article, "NJ Panel Grills Hospitals Over Discovery In Horizon Row," in Law360. Day Pitney is representing five New Jersey hospitals in a lawsuit against Horizon Healthcare, relating to its new, multi-tiered health plan called OMNIA. Furey advocated on behalf of the five hospitals on Wednesday before a New Jersey appeals court that Horizon should turn over a consultant's report and certain agreements relating to how Horizon categorized hospitals under its controversial OMNIA Alliance program and the impact of OMNIA on the hospitals. These Tier 2 hospitals are alleging various claims, including breach of contract and citing concerns that being ranked in the lower tier of the program will cost them business. Horizon contends the sought-after materials, including a financial analysis, strategic alliance agreements and rate agreements between the insurer and OMNIA network hospitals, contain trade secret and confidential information. "If we're going to prove our hospitals should be Tier 1 alliance members, we need the documents and the information," Furey said.