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July 12, 2024

The Importance of Disclosures in 2024

Background checks are essential for employers to make informed hiring decisions. However, to protect candidates’ privacy and rights, it is crucial to follow legal requirements for disclosure and authorization. Employers must inform candidates about the background check process and obtain explicit consent before proceeding. This ensures transparency and compliance with laws such as the Fair Credit Reporting Act (FCRA) and beyond, fostering trust between employers and potential hires. (Trust us: we’ve seen enough litigation regarding disclosures that warrants as much attention as possible!)

Maintaining Compliance

Understanding and following FCRA requirements is a big deal for employers. Using automated tools to send out customized disclosure and authorization forms can save time, reduce mistakes, and keep you compliant with the laws. That’s why we created QuickApp. It’s powered by AI to fill out all the necessary forms for city, county, state, and federal levels based on where candidates live and where they’re applying to work. So, you’ll always stay compliant, no matter what.

Disclosure Requirements

Employers must give candidates a simple, standalone document stating that a background check might be done. This document should only contain this information so candidates can clearly understand their rights and how their background information might be used.

Authorization Requirements

Candidates must give the green light for the background check, usually by signing a consent form, which can be done on paper or electronically. This step ensures they know about and agree to the background check. Since the FCRA protects consumers, getting this authorization is necessary to run the check and gather the personal info needed for the screening.

Ongoing Consent

For roles requiring continuous checks, evergreen consent may be used, where candidates agree to future screenings (whether for promotion, retention, reassignment, or otherwise). This can be particularly helpful in initially hiring an individual for a particular role and then needing different searches. Of course, your legal counsel should be consulted to ensure compliance with regional laws and regulations.

Streamlining the Process

An automated background check system helps employers consistently send disclosure and authorization forms, reducing errors and speeding up the hiring process. In short, it ensures all legal requirements are met smoothly and reliably. With our QuickApp, this step can be built into your workflow of onboarding an individual and can even be integrated into your ATS/HCM/HRIS technology. You can take a peek at who we’re currently integrating with here.

Even though authorization and disclosures seem simple, keeping up with the constantly changing regulations is crucial. For example, the Summary of Rights was updated last year, and using an outdated version could lead to legal trouble. Check with your legal counsel if you have any questions about your forms.