Even if they are not legally required to do so, many employers use background check information on applicants and current employees to improve the chances they will hire, retain and promote the best candidate. Employers must use background check information appropriately, otherwise they can be exposed to substantial legal and financial risks. Practical Law Company has a collection of resources to help employers understand and comply with their legal obligations.

Employers using a consumer reporting agency to obtain background check information on applicants or employees must comply with the Fair Credit Reporting Act (FCRA) disclosure and authorization requirements, both in conjunction with:

For more information, see Practice Note, Background Checks and References: The Fair Credit Reporting Act and the Use of Third-party Providers and Using Background Checks in Employment Checklist.

For model documents that comply with the FCRA requirements, see Standard Documents, Fair Credit Reporting Act (FCRA) Disclosure and Authorization for Background Checks and Fair Credit Reporting Act (FCRA) Adverse Action Notification Letter.

Employers using criminal history information should be familiar with the EEOC's updated guidance, which cautions against the use of arrest records and provides guidance for employers that consider convictions, including developing a targeted screen and undertaking an individualized assessment for individuals excluded by a targeted screen.

For more information, see:

State laws may impose different or additional requirements on employers such as distinct disclosure and authorization requirements or mandating background checks for certain types of work. For information on employers' obligations under state law, see State Q&A Guide to Background Check Laws.