Employer Certification: What is it, and why does it matter?

signature If you have requested an employment-related credit or background check from AAA Credit Screening recently, you may have been notified of a requirement you were missing from your request: an employer certification form. You may have found yourself asking: what is an employer certification form, and what is the purpose of this document?

The employer certification form is required for AAA Credit Screening’s compliance with the Fair Credit Reporting Act (FCRA)1. The FCRA mandates that a consumer reporting agency such as AAA Credit Screening can only supply reports for employment purposes if:

“the person who obtains such report from the agency certifies to the agency that […] (i) a clear and conspicuous disclosure has been made in writing to the consumer at any time before the report is procured or caused to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes; and (ii) the consumer has authorized in writing […] the procurement of the report by that person” (§ 604 – 15 U.S.C. § 1681b)

In short, this section of the FCRA requires that any employer requesting a consumer report for “employment purposes” must give “certification,” or written confirmation, to their reporting agency that they have given the proper disclosures to and obtained an authorizing signature from an individual before requesting an employment screening on said individual. The easiest way to comply with this certification requirement is to simply complete and sign the employer certification form that AAA Credit Screening Services provides for our clients.

Note that the employer certification form must be completed every time you request a screening. In this way, it is different from our Client Service Agreement or Criminal Reporting Policies Form, which are one-time requirements for sign-up with AAA Credit Screening Services. The one exception is during batch orders or multiple orders on the same applicant. The Federal Trade Commission (FTC), who controls the FCRA, has stated2 that “blanket certification” is acceptable in the case of multiple orders made on the same day “as a practical matter.” Additionally, they have said that it is acceptable “if an employer submits a blanket certification for purposes of obtaining consumer reports on an employee during the term of that individual’s employment.”

It is AAA Credit Screening Services’ duty as a consumer reporting agency to comply with the FCRA. To stay informed about employment screening and how the FCRA affects your company, be sure to follow the AAA Credit Screening blog!

www.hrbackground.com

1 For the full document of FCRA online
2 As stated in “Advisory Opinion to Kilgo” (07-28-98)

How comprehensive is your screening process?

Whether it’s for employment or tenant purposes, you want to have the satisfaction of knowing you chose the best candidate. A background screen on an applicant will indicate credit worthiness as well as their criminal history (if they have one).

It is vitally important to consult your background screening provider regarding the most comprehensive criminal reports you can obtain. Your screening provider will know the ins and outs of criminal reporting and be able to direct you to obtain the most comprehensive search available. Generally speaking, a statewide criminal report is sufficient to provide the criminal history you are looking to obtain. However, the most thorough criminal report is the county criminal.

the best

Although it may be slightly costlier to run a few county criminal reports as opposed to the statewide criminal, a single question must be asked.

Would you sacrifice your business and safety to save a few dollars?

Any criminal report can give you some level of peace of mind, but there are certain factors which have to be taken into consideration when deciding on a type and scope of report. The purpose of the screening can help determine the steps that will need to be followed if a criminal record is found. As always your background screening provider should be able to give you general guidance pertaining to adverse action. Each state has their own laws that govern adverse action, so it is always best to consult an attorney for legal direction.

https://www.hrbackground.com