Background Check Restrictions

Performing background checks on prospective employees is a typical, important part of the hiring process.  Companies are wise to implement background checks to make sure the person they want to hire is who they say they are, and doesn't have a criminal record.  However, there are regulations that must be followed to legally perform a background check.

Some of which include:

• The Fair Credit Reporting Act (FCRA) - Regulates the collection and distribution of consumer information, including consumer credit information.
• The Driver's Privacy Protection Act (DPPA) - Controls the flow of information collected by the states Departments of Motor Vehicles (DMVs).
• The Gramm-Leach-Bliley Act (GLBA)

The FCRA requires:

1. That users have a permissible purpose for obtaining the information.

• For the extension of credit as a result of an application from a consumer, or the review or collection of a consumer's account.
• Where the consumber has given written permission.

1. That the company must notify the consumer when an adverse action is taken on the basis of such reports.
2. Users to identify the company that provided the report, so that the accuracy and completeness of the report may be verified or contested by the consumer.

If a company willfully violates the FCRA, they're maybe subject to criminal and civil penalties.  Since background checks usually include credit checks, they fall under the FCRA. Users also must obstain an authorization form before initiating the background check.  Most background check services can provide sample forms.

Some background checks also analyze a person's driving record specifically, but others pick up driving infractions in their criminal history analysis.  In this case, their efforts fall under the DPPA.  In Section 2723 of the bill, which is titled "Penalties and Remedies," it says:

Finally, the GLBA serves as a costar to the FCRA.  A lot of its regulations feed off what the FCRA requires.  Under the GLBA, credit institutions must provide their customers with a privacy act, which should explain the information collected about the consumer, where that information is shared, how that information is used, and how that information is protected.  They can "opt-out" of this policy at any time, meaning they can say no to allowing their information to be shared with affiliated parties.

As you can see, there's more involved in performing a background check than sitting down, entering somebody's name, and waiting for the results.  You have to follow the regulations in place, or else risk serious financial and sometimes criminal consequences.  The last thing a company would want is for their efforts to safeguard their hiring process to end up on their background checks in the future.  Once you have read up on these and other laws, use a background check service to begin the process.

 Also, check out our top three rated background check service websites: US Search, Intelius, and eFindOutTheTruth.