Why Compliance Matters
When you as an employer use consumer reports to make employment decisions like hiring, promotion, reassignment, and retention, the Fair Credit Reporting Act it requires employers to take important compliance steps. The law requires employers to follow certain procedures with consent, adverse event notices, and disputes.
At Laborchex we understand there are no fail-safe solutions to avoid litigation, but employers can take additional steps to ensure compliance and mitigate risk. Laborchex has learned after many years of experiences, part of the compliance problems is that those employees who are tasked with initiating the notices are uncertain as to when notices are required or what must be in those notices.
This problem is further exacerbated by having insufficient tools with which to track the timing, delivery and receipt of such notices. We also understand some educational institutions are cautious about outsourcing this function, rightfully so. The FCRA makes it clear that the employer is ultimately responsible for compliance in this area. We believe this function is best outsourced to a Consumer Reporting Agency (CRA), like Laborchex.
Laborchex help employers mitigate this risk with a clear statement of work included in an agreed upon service agreement that spells out the notification requirements and the duties of both the employer and the CRA. The difficulty that many employers have when it comes to complying with FCRA notification requirements is that the pre-adverse action notification is a triggered event that is not required for every employment background, and the final adverse action notification is also a triggered event that is not required for every pre-adverse action notification. Contact us for additional information.