Employers who conduct background checks are required to give job applicants the “Summary of Your Rights Under the Fair Credit Reporting Act” disclosure form. The news was released on Sept. 12, 2018 by the Consumer Financial Protection Bureau (CFPB), and employers and background check companies may begin using it on Sept. 21.

A failure to provide the correct notification can lead to significant exposure, including class action litigation.

Jackson Lewis explains, the form is part of the Economic Growth, Regulatory Relief, and Consumer Protection Act, which requires credit reporting bureaus to provide consumers fraud alerts and unlimited, free national security freezes and freeze releases.

It also says that whenever an employer or background check company is required to provide a copy of the “A Summary of Your Rights Under the Fair Credit Reporting Act” or the “Summary of Consumer Identity Theft Rights” disclosure form, they also must provide a notice regarding these new security freeze rights.

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