FCRA Changes Impose New Rules For Employers Using "Consumer Reports"

New regulations that go into effect early next year will require employers who use "consumer reports" to hire, fire promote, demote and/or reassign current or prospective employees to inform their employees and applicants, in advance, of their intention to obtain a consumer report. Regulations promulgated under the Fair Credit Reporting Act ("FCRA"), which take effect on January 13, 2013, will also require employers to obtain the employee's or applicant's express written consent to obtain such reports. In addition to securing the employee's or applicant's consent, employers will be required to give a copy of the report to the affected individual, as well as, provide advance notice if the employer intends to take any adverse employment action on the basis of the information in the report. The FCRA recently issued a Summary of Consumer Rights which employers must furnish to individuals before taking any adverse employment action based on information in a consumer report. The FCRA also recently issued a revised "Notice of Furnisher Responsibilities," which sets out the obligations of those who furnish consumer reports, and a revised "Notice to Users of Consumer Reports of Their Obligations Under the Fair Credit Reporting Act," which summarizes the duties of employers using consumer reports. Employers may obtain a copy of the Summary of Rights by clicking on following this link. View PDF .