Privacy Issues in the Workplace

following information of others: bank or credit card account information, Social Security number, date of birth  a position in which the person is a named signatory on the bank or credit card information of the employer, is authorized to transfer funds on behalf of the employer, or is authorized to enter financial contracts on behalf of the employer

 a position that affords access to proprietary or confidential information

 a position that involves regular access to cash totaling more than $10,000 of the employer, a customer or client during the workday.

Civil Code section 1785.20.5 requires an employer who requests a credit report from an applicant or employee to notify that individual which of the specific exceptions applies to him or her.

Additionally, employers should continue to comply with restrictions imposed by the Fair Credit Reporting Act’s 44 and the Investigative Consumer Credit Reporting Agencies Act’s 45 upon the acquisition and use of credit history information about applicants and employees:

 The scope of any credit history inquiries should be job related. 46

 Written notice to the applicant must be provided, giving the applicant the opportunity to receive a copy of the report at no charge.  If the employer makes an adverse employment decision based in whole or in part upon the report, it must advise the applicant of that fact and provide the name and address of the agency that furnished the report.

Employer Tips : Employers should determine which positions in their agency still allow use of credit reports in connection with employment decisions. They should also re-visit the notice forms they currently use to comply with notice and disclosure provisions and update them to include the new notice requirements. Employers should keep in mind that Fair Credit Reporting Act and the Investigative Consumer Reporting Agencies Act also impact many other aspects of the background investigation process as discussed below. a. The Fair Credit Reporting Act The Fair Credit Reporting Act (FCRA) 47 is federal legislation that not only restricts the use of credit reports, but also impacts an employer’s conduct of reference checks if the employer utilizes the services of a third party to conduct the reference checks. If an employer conducts reference checks itself, and does not employ the services of a consumer reporting agency, the employer is not subject to the FCRA.

Privacy Issues in the Workplace ©2019 (s) Liebert Cassidy Whitmore 20