A new joint publication of the Federal Trade Commission and Equal Employment Opportunity Commission serves as a reminder to employers of the risks that come with the use of background information when making personnel decisions, including hiring, retention, promotion, and reassignment.  Titled “Background Checks: What Employers Need to Know,” the publication seeks to guide employers on how to comply with both the Fair Credit Reporting Act and federal nondiscrimination laws in obtaining background information, as well as using and disposing of such information.  For more on the publication, see our legal alert. 

In addition to the risk of FTC enforcement, nonbank employers other than auto dealers can also be the subject of FCRA enforcement actions by the CFPB even if they are not providers of consumer financial products and services.  The CFPB and FTC share FCRA enforcement authority regarding such nonbanks, and the CFPB can also enforce the FCRA against large banks.