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2019 Updated Disclosures Required With Background Reports

Published Monday, October 29, 2018

For California employers, the road keeps getting rockier as they navigate all of the new consumer rights and privacy laws that protect new job applicants and existing employees. While no one change may seem monumental, employers must utilize great care when dealing with new job applicants and existing employees to reduce their exposure to liability and expensive litigation.

The Economic Growth, Regulatory Relief and Consumer Protection Act, was passed at the end of May and went into effect on September 21, 2018. This Act includes a new notice to consumers explaining that they have the ability to ask for a security freeze or fraud alert to be added to their credit report.

For employers who conduct background checks, an additional notice titled “Consumers Have the Right to Obtain a Security Freeze” must be provided to the applicant any time a consumer is required to receive a copy of their FCRA Summary of Rights—this notice is now included in the updated Summary of Rights. The Summary of Rights is a critical document in the background screening process that is often overlooked by employers.

If you have been using this form with applicants, now is the time to update it to remain compliant with the new legislation. If you have not included a Summary of Rights with the disclosures an applicant signs prior to a background check, this is the perfect time to incorporate this required document in your forms package.

Consumers are more concerned than ever about security breaches and privacy invasion and have every right to request a security freeze and/or fraud alert to their personal credit profile. Even if you are not pulling a credit report on the job applicant or employee, this updated form MUST still be used when pulling a background report!

To receive a FREE copy of a fully compliant Summary of Rights form, please call or email CEA partner, Background Check Advisors or check out CEA’s Additional Resources underneath Federal Government Forms, which contains the updated form. Background Check Advisors is a local company that provides solutions that meet new federal and CA legislative requirements. We are happy to offer guidance on this and any other issues relating to your company’s background screening process.

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