In today’s competitive job market, the integrity of background check reports can significantly influence career opportunities. Unfortunately, background check errors such as mistakes, inaccuracies, and false expunged convictions are common and can lead to unfair employment denial. If this happens, individuals may be entitled to compensation under the Fair Credit Reporting Act (FCRA), which requires employers to follow strict guidelines when using background checks for employment decisions.
Information that should not be reported
Before running a background check, employers must first provide an applicant with a written disclosure in compliance with the Fair Credit Reporting Act. This disclosure must be separate from other forms or agreements, and clearly state that a consumer report may be used in their employment decision process.
Furthermore, employers must obtain written authorization from the applicant to proceed with the background check. This authorization should include an option for the applicant to request a copy of the background check report. If the applicant opts-in, the employer is obligated to provide the report within three business days of receiving it. This way, applicants can verify the accuracy of the information before it influences any employment decision.
However, background check reports can contain various errors, from minor to significant inaccuracies. Employers are prohibited from basing employment decisions on these mistakes. Reports should not include:
- Records of other or mismatched people.
- Incomplete information.
- Misleading information such as a single charge listed multiple times.
- Arrests without convictions.
- Expunged crimes.
- Misclassified offenses.
- Old convictions.
- An adverse driving history older than 7 years.
- Diversion program arrests.
- Minor marijuana arrests older than 2 years.
Pre-adverse action notice
In cases where a background check report might negatively affect an employment decision, employers must provide a pre-adverse action notice to the applicant, including a copy of the report and a summary of rights under the Fair Credit Reporting Act. This allows the applicant to review and dispute the report before an employer makes a final decision.
If an adverse employment decision is still taken, the employer must then provide an adverse action notice. This notice must outline the reasons for the decision and include the contact information of the background check company that provided the report. It should also remind the applicant of their right to obtain another free report from the consumer reporting agency and further dispute inaccuracies within 60 days.
Have you been the victim of fraudulent background check or credit reporting? Wondering what to do if your credit score dispute is rejected?