Ninth Circuit: Disclosures for Background Checks Cannot Contain a Liability Waiver

APPLIES TO

All Employers with AK, AZ, CA, GU, HI,
ID, MT, NV, OR, WA Employees

EFFECTIVE

January 20, 2017

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(888) 378-2456

On January 20, 2017, in Syed v. M-I, LLC, the Ninth Circuit Court of Appeals stated that the disclosure required by the Fair Credit Reporting Act (“FRCA”) cannot also contain a liability waiver for conducting the background check in the same document.  Rather, only the disclosure notice and background authorization can be contained within the same document.  Having other language in the disclosure notice violates background check rules under the FRCA.

Action Items

  1. Review FRCA disclosure documents to ensure only the disclosure notice and background authorization are contained within the document.
  2. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

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