Authorization
|
Disclosure
that a consumer investigative report may be requested, and authorization for the
report to be completed must be provided before an employer may request or obtain
a consumer report. |
Adverse Action,
Notice |
Before formulating a
decision based on the results of a consumer investigative report that adversely
affects an applicant or employee's employment, the employer must provide the
affected person with the informaiton below:
A copy of the report and a
written description of the person's rights under the FCRA.
The name, address and
telephone number of the reporting agency (including the toll-free number, if a
national agency)
Notice of the person's
right to obtain a free copy of the report from the CRA if requested within 60
days.
Notice of the person's
right to dispute the accuracy or completeness of the report with the
CRA.
Notice that the CRA did
not make the decision to take the adverse action and is unable to provide the
person the specific reasons why the action was taken. |
Causes of Action
and Penalties |
Employers who fail to give
appropriate notices or obtain authorizations may be sued by affected
individuals.
Consumer reporting
agencies and users of consumer information who willfully or negligently fail to
comply with any requirement imposed under the FCRA may be liable for actual
damages, court costs, and reasonable attorney's fees. Punitive damages are also
available for civil penalties of not mor ethan $2,500 per violation.
However, no consumer may
bring any action or proceeding for defamation, invasion of privacy, or
negligence with respect to the reporting of information against any consumer
reporting agency, any user of information (including employers and prospective
employers) or any person who furnishes information to a consumer reporting
agency unless the information is false and has been provided with malice or
willful intent to injure the consumer. |
Consumer Reporting
Agency |
A
consumer reporting agency is defined under the FCRA as any entity "which for
monetary fees dues or on a cooperative, non-profit basis regularly engages...in
the practice of assembling or evaluating consumer credit information or other
information on consumers." The Federal Trade Commission (FTC) has broadened this
definition to include agencies retained by employers to investigate employees
with respect to workers' compensation claims and other private entities and
organizations hired by employers to investigate workplace misconduct such as
sexual harrassment allegations, fraud, and employee violence. |
Consumer Reporting Agency,
Notice |
Before a consumer
reporting agency may provide or prepare a consumer report for an employer, it
must be notified of the following:
- The employer certifies
the required disclosure to the applicant or employee has been provided.
- The employer certifies
that written permission from the applicant or employee to obtain the report has
been received.
- The employer certifies
the the information received will not be used in violation of any applicable
equal employment opportunity law or regulation.
- The employer certifies
that it will comply with the requirements before taking any adverse employment
action.
|
Disclosure |
Disclosure
that a consumer investigative report may be requested, and authorization for the
report to be completed must be provided before an employer may request or obtain
a consumer report.
- The rules regarding
disclosure may vary by state, with some states requiring more than the minimum
required by the FCRA. The following are required by the FCRA.
- The employee or applicant
must be informed no later than three days after the report is requested.
- The employer must inform
the applicant or employee that the report may include information as to his or
her character, general reputation, personal characteristics and mode of
living.
- The employer must provide
the applicant or employee with A Summary of Rights under the
FCRA.
- The employer must inform
the applicant or employee that they are entitled to a copy of a "complete and
accurate disclosure of the nature and scope of the investigation." If the
applicant or employee requests a copy of the report, they must be provided one
within 5 days of receipt of the request.
|
Investigative Consumer
Report |
An
investigative consumer report is defined as 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 a consumer reported on or
with others with whom he is acquainted or may have knowledge considering any
such intems of information." This broad definition includes personal references,
interviews with neighbors regarding workers' compensation investigations, and
interviews with coworkers regarding personal conduct. |
Permissible
Purpose |
Permissible purpose, as
far as employment reports are concerned,includes pre-employment and employee
misconduct investigations. |