• New Requirement for Employers Who Use Third Parties to Conduct Background Checks
  • June 9, 2005 | Author: J. Mark Sampson
  • Law Firm: Womble Carlyle Sandridge & Rice, PLLC - Greensboro Office
  • As an employer, do you conduct criminal background checks of your applicants by using private investigators, internet search companies, or other third parties? Do you obtain credit history information from applicants by making inquiries with credit bureaus or other third parties? If so, a new "Disposal Rule" implemented by the Federal Trade Commission affects you. Specifically, effective June 1, 2005, employers who obtain certain types of information concerning their employees and applicants must take reasonable steps to "dispose" of this information at the time they discard it.