LEGISLATIVE ALERT/ URGENT NOTICE

FOR ALL CALIFORNIA EMPLOYERS
CONDUCTING BACKGROUND CHECKS

The California Legislature has amended the California Investigative Reporting Agencies Act (ICRA) to require all Employers conducting "Investigative Consumer Reports" to provide a copy of the "report" to the applicant if they have requested a copy within 3 business days.
 
AB655, written as an attempt to thwart identity theft, stipulates that an "investigative consumer report means a consumer report in which information on a consumer's character, general reputation, personal characteristics or mode of living is obtained through any means." Specifically this amendment refers to information gathered from any source including pubic records.
 

THE NEW LAW IMPOSES THE FOLLOWING NEW REQUIREMENTS
ON EMPLOYERS, EFFECTIVE IMMEDIATIELY

1. All California Employers must certify to the Investigative Consumer Reporting Agency (McCoy Investigations) they will comply with California Law. In addition Employers must continue to comply with Federal Law.
 
2. A copy of the background report must be given to applicants or employees that check a box on the Notice and Authorization form requesting a copy of the report. This is true even if Employers are conducting their own "in-house" background checks.
 
3. The amendment requires a new notice containing certain warnings and disclosures to be placed on a cover sheet of any report by the background screening company in 12-point type.
 

PENALITIES FOR NON-COMPLIANCE MAY BE SUBSTANTIAL

Violations of the above can expose the employer to actual damages sustained by the applicant or ten thousand dollars ($10,000), whichever is greater, plus punitive damages. A full copy of the law may be found here.
 
In addition to the California Laws, Employers must still follow the Federal guidelines set forth by the Federal Fair Credit Reporting Act, amended September 1997.
 

MCCOY INVESTIGATIONS WILL IMPLEMENT
MOST OF THE CHANGES

We will implement most of the changes with updated disclosures included in our new authorization form and background reports. However; you (Employer) must provide a copy of the report to the applicant no later than 3 days from the date, you (Employer) receive the report.
 

This legislative update is not intended to be legal advice. Only an attorney may give you such advice. Please contact your attorney regarding any questions and concerns or possible conflicts between federal and state laws.