In March 2014, the Federal Trade Commission issued a bulletin entitled Background Checks: What Job Applicants and Employees Should Know, which set forth and summarized a number of the laws and regulations on the use of employment background checks, both prior to and subsequent to hiring.
In November, the FTC issued a second such bulletin, entitled Tips for Job Applicants and Employees. While the second bulletin contains the same type of guidance as the first, it further focuses on the rights of job applicants under the Fair Credit Reporting Act, the enforcement of which has been a priority for the FTC and the Consumer Financial Protection Bureau.
While neither of these bulletins contains any new interpretative statements, they serve as concise summaries of some of the most important regulations governing employment background screenings, and they continue to signal that both the FTC and CFPB are keenly focused on that process and this industry.
Troutman Sanders LLP frequently represents employment background screening companies and employers on compliance issues and in litigation on matters related to the FCRA. Troutman Sanders LLP will continue to monitor such guidance as it is promulgated by government agencies.