FCRA Employment Screening & Background Checks Flashcards

Under the FCRA, an employer that uses a consumer report for employment purposes and takes no adverse action still has which ongoing obligation?

Answer: Proper disposal of the report to prevent unauthorized access

FCRA §628 and the Disposal Rule require employers to properly dispose of consumer report information to protect consumer privacy, regardless of whether adverse action was taken.

Which federal agency has primary rulemaking authority over FCRA employment screening provisions affecting most private employers?

Answer: Consumer Financial Protection Bureau (CFPB)

The Dodd-Frank Act transferred primary FCRA rulemaking authority to the CFPB, which now issues binding regulations governing employment screening under the FCRA.

A third-party vendor compiles publicly available social media data into a profile for employers. Under which circumstances must it comply with the FCRA?

Answer: When it regularly assembles the data and sells it to employers for employment decisions

A vendor that regularly assembles consumer information for employment purposes meets the definition of a CRA under FCRA §603(f) and must comply regardless of the data's public availability.

Which court decision significantly influenced how the FCRA's 'willful noncompliance' standard is interpreted, affecting statutory damages in employment screening cases?

Answer: Safeco Insurance Co. of America v. Burr (2007)

Safeco v. Burr established that 'willful' FCRA violations include reckless disregard of the law's requirements, shaping how courts assess statutory damages in employment screening disputes.

A small employer with 14 employees uses a CRA to screen candidates. Which FCRA obligation does it share with large Fortune 500 companies?

Answer: The pre-adverse and adverse action notice requirements apply regardless of employer size

FCRA employment screening obligations—including written authorization, pre-adverse notice, and adverse action notice—apply to all employers regardless of size.

A background screening firm charges consumers a fee to view employment reports about themselves. Under the FCRA, consumers are entitled to request their own file disclosure for free under which circumstance?

Answer: Within 60 days of receiving an adverse action notice based on the report

FCRA §612 entitles consumers to a free file disclosure from the CRA within 60 days of receiving an adverse action notice that resulted from the CRA's report.