Category Archives: Compliance

The Top 3 Questions Property Managers Need to Ask NOW
Posted on: October 25, 2016


What 3 questions do you need to ask yourself right now?

1. Is it time to review your tenant screening program for compliance with the Fair Credit Reporting Act?

  • Know the  FCRA. A good screening company can help you with this.

2. Does your screening partner know the law?

3. Are you prepared for the potential class action lawsuits that may emerge as a result of non-compliance?

  • Employers were slow to adapt and paid millions of dollars to class action plaintiffs and lawyers who know the pitfalls and utilize them to their benefit.
  • There are professional plaintiffs out there that know the law and are actively seeking violators.


Be proactive. Work with professionals to insure your compliance. The FCRA isn’t just for employers anymore!



Here are links to the materials provided by the FTC:

What Tenant Background Screening Companies Need to Know About the Fair Credit Reporting Act

Using Consumer Reports: What Landlords Need to Know


2015 Top 5 Trends for Background Checks
Posted on: January 22, 2015

Welcome 2015! Last year was a progressive year for compliant employment background checks. With all the technological advancements and different compliance and regulatory issues that stirred up 2014, we will attempt to break down the Top 5 trends for Compliant Background Checks, and how it will affect employment screening service clients in general for this year:


The ‘Ban the Box’ Movement
Posted on: January 16, 2015

An historically common practice of employers is to include an inquiry regarding criminal history, or past felony conviction, on the job application as a fill-in-the-blank “yes” or “no” question. Due to the constant evolution and amendment of pre-employment laws and compliant background checking practices, though, some believe that this procedure may be due greater scrutiny.

Currently, there is a trend known as the “Ban the Box” movement that is pushing employers away from this practice, and instead offers a much more personal and case-by-case basis of analysis of an applicant’s arrest and conviction history.


Fair Credit Reporting Act and Employment Background Checks (Disclosure and Consent)
Posted on: November 17, 2014

Preliminarily Approved $6.8 million Settlement Due to Small Error on Disclosure Form

The Fair Credit Reporting Act applies not only to credit reports, but to employment background checks as well. As we have seen from recent class action filing trends, this is proving to be an area for employers that is worthy greater clarity and focus.

To accommodate this, over the course of the next few weeks we will look more closely at how employers can successfully navigate each of the critical components of this potential litigation minefield.

This article will focus specifically on one critical step in the background screening process: FCRA compliant background check consent and Authorization.

Earlier this year, Publix Super Markets Inc. was confronted with a class action lawsuit resulting in the preliminary approval of a $6.8 million settlement due to the wording used on their pre-employment background report authorization and consent form. To be precise, Publix Super Markets Inc. made the mistake of including a statement of waiver of liability on said form. According to the FCRA, consent and authorization forms MUST include “stand alone” disclosure.

The phrase “stand alone” demands that the form ensure applicants are aware of the employer’s intention to procure a background check, and that clear and conspicuous disclosure of this fact must be made in writing in a document that consists solely of this disclosure to the applicant/employee before a report is procured or ordered to be procured.

So what does this mean? Consent and Authorization forms used for pre-employment or continued employment background screening may ONLY consist of a statement of intention to procure a background check, and an authorization section for the applicant/employee to authorize this procedure.

Absolutely no extraneous information (such as purported release of liability, statement of ineligibility for employment if no consent is given, etc.) may be included on the form.

It is a safe assumption that full compliance with FCRA rules and regulations is no easy task, as disclosure wording is not the only potentially problematic detail in the statute. The important steps in ensuring compliance with the FCRA as it relates to consent and authorization are as follows:

  1. Disclosure should be clear and in writing in a document that consists of the disclosure only.
  2. Disclosure should NOT be a part of a printed employment application, but may include a blanket disclosure permitting consumer reports for the duration of employment.
  3. Authorization must be obtained before procuring or ordering a consumer report, and may be included with the disclosure document, and may include a blanket authorization covering the duration of employment.
  4. There are NO prohibitions by the FCRA from an employer taking adverse action against an applicant who refuses to provide background check authorization.

One option being recommended to employers and HR managers to remain compliant is to simply separate the consent and authorization forms all together, and have completely separate documentation diverting all extraneous information or notification to a different consent form.

The best and most effective approach to avoiding a costly lawsuit remains consulting competent, experienced legal counsel on each aspect of FCRA Compliance before conducting background checks.



Lebowitz, Todd. “Publix to Pay $6.8 Million Settlement over Noncompliant Background Check Forms.” Lexology. 3 Nov. 2014. Web. 7 Nov. 2014.

Jodka, Sara. “The FCRA Is the New FLSA.” Employer Law Report. Porter Wright Morris & Aurthur, 3 Nov. 2014. Web. 7 Nov. 2014.


About the Author:

My name is Matthew J. Rodgers and I am the President of, a background screening company that specializes in fast, accurate, compliant and affordable screening solutions for employers. If you found this article useful or informative, please share it and subscribe to my blog. I am not a lawyer, so if you need specific legal advice please use appropriate counsel. The views expressed herein are solely my own.

You can reach out to me at, or by visiting our website at to learn more.



Legally High? Legally Fired.

Posted on: March 27, 2014

San Francisco Employers Beware: New Extensive Restrictions On Use Of Criminal Background Information

Posted on: March 21, 2014

“You’re Wearing That?” The EEOC Weighs in on Workplace Accommodations for Religious Clothing and Grooming Practices

Posted on: March 19, 2014

FTC and EEOC Publish Guide For Employers On Background Checks and Hiring

Posted on: March 13, 2014

FBI Background Checks

Gold Standard or Fool’s Gold?

Posted on: August 1, 2013

Disparate impact theory comes under the scrutiny of the US Commission on Civil Rights
Posted on: March 22, 2013