The Consumer Financial Protection Bureau (CFPB) recently issued an updated Fair Credit Reporting Act (FCRA) notice that employers must use when conducting background checks on employees and applicants using third parties. Changes to the notice, entitled "A Summary of Your Rights Under the Fair Credit Reporting Act," include:

These changes are a result of a transfer of FCRA rulemaking authority from the FTC to the CFPB under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). Under the FCRA, employers must follow certain procedures when using third parties to obtain consumer reports or investigative consumer reports on employees and applicants, such as credit checks, motor vehicle records and criminal history checks. Specifically, employers must provide a copy of the notice to applicants and employees when:

Employers must use the new notice as of January 1, 2013. For more information on background checks and obtaining references on applicants for employment or current employees, including the Fair Credit Reporting Act and the use of third-party providers, see Practice Note, Background Checks and References.