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Employment Law Update: Make Sure Your Disclosure Forms Are Up To Date

Monday, 29 October 2018 / Published in Business, Employment

Employment Law Update: Make Sure Your Disclosure Forms Are Up To Date

In May 2018, Congress passed the Economic Growth, Regulatory Relief, and Consumer Protection Act. Under the Act, consumer reporting agencies must provide “national security freezes” free of charge to consumers. These national security freezes restrict prospective lenders from obtaining access to a consumer’s credit report, making it harder for identity thieves to open fraudulent accounts. Additionally, whenever the Fair Credit Reporting Act (“FCRA”) requires a consumer to receive a Summary of Rights, the consumer must now also receive a notice of the new security freeze right.

For employers, this means that when an employer subjects job applicants or employees to background checks or adverse actions as a result of background checks, the FCRA requires the employer to provide the revised “A Summary of Your Rights Under the FCRA.” Since the new form requirement took effect September 21, 2018, any employers that utilize background checks for their employees or job applicants must ensure that their disclosure forms are updated immediately. Failure to update the form may lead to liability for violations of the FCRA.

The Bureau of Consumer Financial Protection recently updated its model disclosures to implement these changes made to the FCRA. Employers can use the Bureau’s model forms or create their own substantially similar forms.

Call General Counsel PC Today

If you would like to ensure your business’s disclosures are FCRA complaint or more generally update your business policies, General Counsel PC can help. Our attorneys are specialized in labor and employment law and have experience working with business owners across Virginia. Call General Counsel PC at 703-556-0411 today to see how we can help you.

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