FTC and EEOC Co-Publish Background Screening Compliance Guide

On March 10, 2014, the U.S. Federal Trade Commission (FTC) and Equal Employment Opportunity Commission (EEOC) co-published two guides to help employers and applicants understand how to implement a legally compliant background screening program. The two documents are titled Background Checks: What Employers Need to Know and Background Checks: What Job Applicants and Employees Should Know. The FTC is in charge of enforcing the Fair Credit Reporting Act (FCRA), a federal law that regulates collection, dissemination, and the use of consumer information. The EEOC enforces Title VII of the Civil Rights Act, which prohibits discrimination by employers on the basis of race, color, religion, sex or national origin.

Both agencies stress that employers get permission from applicants before getting background reports, and must not unlawfully discriminate in the use background checks. The agencies are both tasked with regulating background screening, so they decided to work together on this guidance. The objective of the guidance is that both sides (employers and job applicants) fully comprehend their rights as well as their obligations.

The first guide, Background Checks: What Employers Need to Know, contains instruction for employers on several steps of the background screening process. Both agencies include compliance information at each stage of the process. There is instruction on what to do before you get background information, how to use background information, and the disposal of background information.

The second short guide, Background Checks: What Job Applicants and Employees Should Know, serves to educate applicants and employees on their rights and how to handle a breach of their rights by an employer. The guidance is written in plain terms so as clearly understood by consumers. There is also contact information should an applicant/employee feel their rights have been violated.

You can find the full guide for employers here.

You can find the full guide for applicants and employees here.