FTC Releases Employer Guidance

 

The Federal Trade Commission has released guidance for employers who use consumer reports for employment purposes. The guidance reminds that a report on a person’s character – such as a report that includes criminal history – is a consumer report if anyone will use it for employment purposes, which includes employment, promotion, reassignment, or retention as an employee.  

The FTC and the courts have previously said that the phrase “as an employee” only applies to the word “retention,” so the terms employment, promotion, and reassignment can relate to any activity that produces income, even if it is not normally considered employment. The new guidance reminds employers – in plain English – of their obligations when using consumer reports for these purposes. Employers may find it to be a good checklist when evaluating the compliance of their programs.

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Michael Klazema

About Michael Klazema The author

Michael Klazema is Chief Marketing Technologist at EY-VODW.com and has over two decades of experience in digital consulting, online product management, and technology innovation. He is the lead author and editor for Dallas-based backgroundchecks.com with a focus on human resource and employment screening developments.

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