Disclosure and Authorization
Disclosure and authorization refer to the legal requirements under the Fair Credit Reporting Act (FCRA) that employers must follow before conducting a background check. Employers must first provide a clear, standalone disclosure to the candidate and then obtain written authorization before ordering a consumer report.
Compliance note
- Disclosure must be a separate, standalone document with no extraneous information.
- Written authorization must be obtained before requesting any background check or consumer report.
- Employers must comply with the Fair Credit Reporting Act (FCRA) and applicable state disclosure laws.
- Improper disclosure forms are a frequent source of FCRA lawsuits; review templates regularly for compliance.
Related Terms and Posts
Frequently Asked Questions
Q: What is the difference between disclosure and authorization?
A: Disclosure informs the applicant that a background check will be conducted, while authorization is the written consent the applicant provides allowing the employer to obtain the report.
A: Disclosure informs the applicant that a background check will be conducted, while authorization is the written consent the applicant provides allowing the employer to obtain the report.
Q: Can disclosure and authorization be combined in one form?
A: Yes, they can be on the same document, but the disclosure must remain clear and standalone, without extra language unrelated to the background check.
A: Yes, they can be on the same document, but the disclosure must remain clear and standalone, without extra language unrelated to the background check.
Q: What happens if an employer fails to provide proper disclosure or authorization?
A: Failure to comply can result in FCRA violations, including statutory damages and class action lawsuits. Employers should use compliant templates and periodically review them with legal counsel.
A: Failure to comply can result in FCRA violations, including statutory damages and class action lawsuits. Employers should use compliant templates and periodically review them with legal counsel.
DISCLAIMER: The information provided in this glossary is for general informational purposes only and should not be construed as legal advice. While we strive for accuracy, EDIFY Background Screening does not guarantee that the definitions or explanations are complete, up to date, or error-free. Employers should always consult with competent legal counsel to ensure compliance with applicable laws and regulations.
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