By: Sheila Raftery Wiggins
The Fair Credit Reporting Act imposes many requirements, including on background checks of prospective employees. An employer may not obtain a background check unless: (1) a clear and conspicuous disclosure is made in writing before the report is caused to be procured, (2) the document consists solely of the disclosure (do not add extraneous information!) and (3) the person authorizes the check in writing. Failure to comply can result in an enforcement action by the Federal Trade Commission, other government actions or private lawsuits. Keep it simple.
Sheila Raftery Wiggins, of the Newark office, handles matters involving complex commercial disputes, insurance defense, coverage disputes, financial fraud, and attorney ethics.