© Copyright 2016 ADP LLC. 5800 Windward Pkwy | Alpharetta, GA 30005

Please Contact Us for More Information: 800-000-0000

 

Latest Compliance News

Updated background check notice required

05/04/23

Author: ADP Admin/Wednesday, April 26, 2023/Categories: Compliance Corner

We are reaching out to let you know that the Consumer Financial Protection Bureau (CFPB) has published an updated version of “A Summary of Your Rights Under the Fair Credit Reporting Act," a notice required to be provided by employers during the background screening process.

The effective date of the new version of the summary notice is April 19, 2023, but the CFPB is allowing employers until March 20, 2024, to start using the new version.

The details

The updated version of the summary notice generally includes non-substantive changes, such as revised contact information for relevant government agencies. The English and Spanish versions of the updated notice can be found here and here.

By way of background, a copy of the summary notice must be provided to an applicant or employee before taking adverse employment action against that individual based on information in a background screening report. A copy of the report relied on to make the decision must also be provided at this time.

Many employers also provide the summary notice to an applicant or employee prior to conducting a background screening on that individual. However, it is required before the background check only if the employer is conducting an investigative background screening. In contrast to a standard background check, an investigative background check involves personal interviews concerning an individual's character, general reputation, personal characteristics and lifestyle.

Next steps

If you conduct background checks, make sure you use the updated notice as part of your pre-adverse action processes by no later than March 20, 2024.