FCRA

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The Bureau of Consumer Financial Protection (the “Bureau”) has issued an interim final rule tied to passage of S. 2155.  While the new law amends the Fair Credit Reporting Act (FCRA) to include new requirements on credit bureaus tied to security freezes and fraud alerts, relevant to background screeners and employers using a background screening company for pre-employment background checks is the fact that the interim final rule includes an updated version of the model FCRA summary of rights document.

Effective September 21, 2018, new section 605A(i) of the Fair Credit Reporting Act (FCRA), added by the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155 or the “Act”), requires that a new notice of rights be included whenever a consumer is required to receive a summary of rights required by FCRA section 609.

Some of you have already begun your efforts to come into compliance with the notice requirement under the Act since the effective date is next week.  According to the Bureau, “to mitigate the impact of these changes on users of the existing model forms, the interim final rule also provides that the Bureau will regard the use of the model forms published in Appendices I and K on November 14, 2012, to constitute compliance with the FCRA provisions requiring such forms, so long as a separate page that contains the additional required information is provided in the same transmittal.”

In addition to adding the new required notice under the Act, the revised model FCRA summary of rights document also includes revised language related to the duration period of fraud alerts as well as updated contact information for the listed enforcement agencies.

The updated model form, A Summary of Your Rights under the Fair Credit Reporting Act, is found on pages 28-31 of the interim final rule.

If you have any questions please do not hesitate to contact me at montserrat.miller@agg.com.

Here’s a sneak peek at this week’s Compliance News Flash from AGG:

  • The California Supreme Court ruled on the constitutionality of the Investigative Consumer Reporting Agencies Act, which is relevant to California employers and their background screening process.
  • Still in California, a new law on its way to the Governor for signature will require software updates for certain consumer reporting agencies.
  • Employers note for purposes of the Form I-9 that the federal government has again auto-extended the work authorization period for Salvadorans and Haitians under the Temporary Protected Status program.
  • Another write-up about the new notice requirement under the Fair Credit Reporting Act related to security freezes.

Click here to read it.

Check out the latest Compliance News Flash with blurbs about:

  • The Justice Department’s recent settlement with the country’s largest egg producer related to violations of the anti-discrimination laws during the employment eligibility verification process.
  • A new requirement on consumer reporting agencies to provide specific language to a consumer requesting a file disclosure under the Fair Credit Reporting Act.
  • California legal protections for employees who seek to change their name and/or social security number after they legalize their immigration status.
  • Processors and Privacy Shield.
  • Brazil’s new data protection law.

Click here to read the Compliance News Flash.

Check out this week’s Compliance News Flash with blurbs about:

  • Salary history bans and employment applications
  • FCRA enforcement by the Federal Trade Commission
  • FCRA related litigation helpful to employers
  • EU-Japan data transfers
  • Changes to San Francisco’s Fair Chance Ordinance

Click here to read the News Flash.

Background screening is a key step in hiring and the onboarding process, but there are a litany of federal and state laws in the US that establish certain obligations on employers as well as provide applicants with certain rights, including from discrimination.

Join Montserrat Miller, Partner, Arnall Golden Gregory LLP, and iCIMS Genera Counsel, Neal Dittersdorf, on Thursday, May 10th at 3:00 pm EST for Remaining Compliant During the Background Screening Process, the latest webinar in iCIMS quarterly Compliance Webinar Series. During this session, attendees will learn about:

  • The requirement to get applicants consent through the disclosure & authorization form
  • The adverse action process
  • How Fair Chance Hiring laws affect employment screening
  • Pay equity laws
  • GDPR compliance

Click here to register.

Please enjoy this week’s Compliance News Flash with blurbs about the largest FCRA-related jury award, litigation involving a public record vendor, the President’s travel ban, the Form I-9, and increased vetting of visa applicants.

Click here to read the Compliance News Flash.

Please join me next week for a discussion about what employers need to be aware of regarding pre-employment background checks to ensure you have compliant background screening policies and procedures in place. Some of the topics I will discuss include the Fair Credit Reporting Act, state law regarding restrictions on the use of credit information for employment screening purposes, the EEOC’s guidance on the use of criminal history records, and Fair Chance Hiring laws (aka Ban the Box ordinances).

The webinar is hosted by ClearStar.  Please register by clicking here.

Details: The free webinar is Wednesday, March 15, 2017 from 2:00 PM – 3:00 PM EDT.