?The Consumer Financial Protection Bureau (CFPB) released an updated “Summary of Your Rights Under the Fair Credit Reporting Act” notice for employers to use before conducting background checks. The agency has provided a grace period until March 20, 2024, for mandatory compliance.
The updated notice that employers and screening firms should begin using contains nonsubstantive changes, explained Michelli Rivera, an attorney in the Atlanta office of Fisher Phillips. “For example, … formatting corrections and updated contact information for the CFPB and other federal agencies,” she said.
Even though the changes are minor, the new notice must be provided to applicants and employees when conducting background checks and when taking an adverse employment action in response to a background check, in compliance with the federal Fair Credit Reporting Act (FCRA).
“Before employers can take an adverse employment action, based in whole or in part on information in a background-check report, the FCRA requires employers to follow a pre-adverse/adverse action process,” Rivera said. “During this process, employers are required to provide applicants and workers with a copy of their report, a summary of their rights under the FCRA and other FCRA information.”
The latest version of the notice will replace the version published in October 2018. English and Spanish versions are available here.
“We recommend that you begin using the updated notice as soon as possible to get ahead of the compliance deadline and ensure that applicants and workers are provided the correct contact information for the agencies listed in the notice,” Rivera said.
“Notably, you do not need to provide the updated notice to anyone who you have already given the prior notice. You should simply ensure that you are using the most current version of the notice moving forward.”
