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A recent court decision ruled that employment screening consent forms that contain state-specific disclosures may not comply with the federal Fair Credit Reporting Act (FCRA).
Learn more about this development and how GoodHire has updated our consent forms to comply with the ruling, mitigate your risk and help you stay in compliance.
At GoodHire, we’re constantly monitoring legislative and judicial developments that impact employment screening to help you mitigate risk and maintain compliance. Recently, the Ninth Circuit Court of Appeals ruled in the case Gilberg v. California Check Cashing Stores that employment screening consent forms that contain state-specific disclosures may not comply with the federal Fair Credit Reporting Act (FCRA).
We alerted customers to this issue following the ruling, and while we stand by our previous forms and procedures, our mission is to provide optimal compliance, so we felt a few tweaks to GoodHire’s disclosure form could help us get there.
We’ve made a few changes to our consent forms to better protect our customers while also respecting the court’s interpretation of the law. Here’s what you need to know.
What Has Changed?
GoodHire’s template consent forms and its candidate consent flow, which now provides a multi-step experience:
Step 1: FCRA Disclosure
All candidates are provided a stand-alone FCRA Disclosure.
This disclosure paragraph is similar to our previous disclosure language, but has been whittled down to a leaner form.
Step 2: California Disclosure
Candidates located in California, or who are applying with California employers, are provided a stand-alone California Disclosure.
This disclosure paragraph contains California-specific language that must be provided to job applicants in a disclosure form. It is provided apart from the FCRA Disclosure and Authorization.
Step 3: Authorization
All candidates are provided a stand-alone Authorization.
This authorization paragraph is similar to our previous authorization language, but has also been whittled down to a leaner form. It is now provided apart from the FCRA Disclosure. In the Authorization step, candidates will find links to state law notices and the Summary of Rights. They will also have the opportunity to check a box for a free copy of their report, which is required by California, Oklahoma, and Minnesota law.
This multi-step approach mitigates consent form risk for you, the employer, and provides a “clear and conspicuous” candidate experience, just as the FCRA requires you to do.
The resources provided here are for educational purposes only and do not constitute legal advice. We advise you to consult your own counsel if you have legal questions related to your specific practices and compliance with applicable laws.