In a recent settlement between TALX and the FTC, it was determined that TALX violated the terms of the FCRA by failing to provide certain disclosures to users of their consumer reports. The full article can be found here. This brings up a really interesting point when it comes to an employment verification.

What I believe to be an argument to the charge by the FTC is how does verifying employment history be classified under a consumer report? Consumer reports are usually credit-based however the scope is broadened to criminal, eviction, or any type of pre-employment background investigation. Asking someone to verify if an applicant worked at their company could be misconstrued as just a verification of employment and not a consumer report however in the eyes of the FCRA, it is a consumer report and you have to follow the rules set forth.

An excellent place for information regarding consumer reports can be found on the FTC website. Click here and you’ll have the most current information direct from the FTC.

It would be wise for any background screening company to make sure all the i’s are dotted and t’s are crossed, especially when it comes to complying with federal and state laws regarding consumer reports. And if you’re not sure, by all means, check with your legal counsel as it’s better to be compliant so you’re not investigated by the FTC.

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