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Background Checks in California Offer Employees More Rights
By carpenjl | July 30, 2008
If you’re applying for a job in California, or are a current employee, you should know the state’s rules on background checks are more open than most.
All background checks are subject to the federal Fair Credit Reporting Act, which sets the national standard. Even states such as California, which has its own laws governing background checks, have to follow FCRA rules. In other words, states can give more rights to workers but cannot take them away.
The FCRA rules apply only when a background check is prepared by an outside company. When a third party compiles a report, the FCRA requires a person be notified an investigation may be performed, the person involved must consent and the person should be notified if information in the report is used to make an adverse decision.
In 2001, according to the Privacy Rights Clearinghouse, California law was amended to give job applicants and current employees greater rights to see the results of their background checks. The expanded laws also give employees a better chance to find inaccurate or incomplete information. California law not only covers third party screeners, but also gives employees access to information found by employers who conduct their own background checks.
In California, a background check process is called an investigative consumer report, and is regulated by the Investigative Consumer Reporting Agencies Act. Under state law, a California employee subject to an outside check will get a more extensive notice of the process than the FCRA requires, including the purpose of the report, the name, address and telephone number of the screening company and a summary of rights to see a copy of the completed report.
The Privacy Rights Clearinghouse notes that California law is so open in order to make up for things the FCRA lacks.
“There is no assurance of accuracy or completeness of information gathered this way,” the site states. “Under the federal FCRA, you do not have the right to receive notice, nor do you have the ability to dispute inaccurate or incomplete information if the employer conducts its own investigation rather than hire a third party reporting agency. Without an obligation to verify and update information, there’s great potential for inaccuracies.”
California follows the same rules as the FCRA when it comes to what cannot be included in a background check. However, it differs in that criminal convictions can only be reported for seven years unless another law requires an employer to look deeper into your background. Also, a background checking agency cannot use public record information in a report unless the information is verified during the 30-day period before the report is issued. This includes arrests, indictments, convictions, civil actions, tax liens and outstanding judgments.
Those who violate the ICRAA can be sued for actual damages or $10,000, whichever is greater. Class action lawsuits are permitted and court costs and attorney fees may be awarded. The court also can award punitive damages if it finds the violation was negligent or willful.
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