An employer must get your written permission in order to conduct a background check. If your permission is not obtained in writing, any information uncovered by the investigation is deemed to have been obtained illegally. If you feel that an employer has used information gained through a background check in a manner that is illegal you must do three things: 1) determine how the information was obtained; 2) establish if the employer violated state statutes, federal laws or both and 3) file a complaint with the appropriate state or federal agency that has jurisdiction over background check violations.

Generally, there are two methods used for acquiring background check information on any candidate who is being considered for employment, as an independent contractor or for a promotion. One option is to have the company’s staff perform the investigation. The other approach, which is also the most common means of securing employment background information, is to have the employment screening conducted by a third-party. The third-party is called a “consumer reporting agency.” If a company uses a consumer reporting agency to perform employment screening, the process is governed by the Federal Fair Credit Reporting Act (FCRA). The Federal Trade Commission (FTC) is the federal agency with the authority to enforce FCRA laws.

For companies that use their own employees to perform an investigation, federal laws do not apply. However, employers are still responsible for abiding by state statutes when conducting screening investigations. Companies must also make sure that they comply with state laws when applying information taken from consumer reports in order to make hiring or promotion decisions. In some cases, information that is used unlawfully may also violate other laws. An example would be denying a candidate a job or promotion because the person has a bankruptcy on their record. This action may be a violation of the Federal Bankruptcy Act.

Violations of the Fair Credit Reporting Act should be reported to the FTC. Contact the Attorney General’s office, in the state where the violation occurred, if you feel that state hiring laws were breached. One thing you should keep in mind is that in many states the laws covering employment practices are stronger than the federal laws; therefore, an employer may be in compliance with federal laws, but in violation of state codes.