Disclose Plans for Background Checks, Court Says

Feb 23, 2017, 4:44 PM

It's not enough to disclose plans to conduct a background check on a prospective employee. You must also make that disclosure "clear and conspicuous" in a document that is not combined with any other disclosures, according to a recent decision by the Ninth Circus U.S. Court of Appeals. In reviving a class-action lawsuit regarding pre-employment background check disclosures, the court focused on a requirement in the federal Fair Credit Reporting Act that any such disclosure should consist "solely of the disclosure" and not, as with the company cited in the case, a liability waiver. Independent schools and other employers are advised to carefully review background check procedures, including documents used by vendors, and ensure that such documents comply with this ruling.

Venable News & Insights (02/21/17)