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Background Check Authorization Form: A Guide for Employers

Learn everything you need to know about background check authorization forms, legal compliance requirements, and best practices for HR managers, startup founders, and small business owners.

Introduction

A Background Check Authorization Form is a legal document that employers use to obtain permission from job candidates or employees before conducting background checks. This form is not just a formality—it's a critical compliance requirement under federal and state laws, including the Fair Credit Reporting Act (FCRA). For HR managers, startup founders, and small business owners, understanding how to properly implement background check authorizations can protect your company from potential lawsuits while helping you make informed hiring decisions. This guide explains what these forms must include, how to use them correctly, and common pitfalls to avoid.

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Key Things to Know

  1. 1

    The Background Check Authorization Form must be a standalone document, separate from your employment application and other onboarding paperwork.

  2. 2

    You must provide a clear disclosure that you will be conducting a background check and obtain written authorization before proceeding with any background screening.

  3. 3

    If you take an adverse action (like not hiring someone) based on background check results, you must follow the FCRA's two-step adverse action process, which includes providing pre-adverse action and adverse action notices.

  4. 4

    Different types of background checks (criminal, credit, driving records, etc.) may have different legal requirements and restrictions depending on your state and industry.

  5. 5

    Keep signed authorization forms on file for at least the duration of employment plus any applicable statute of limitations period for potential claims.

  6. 6

    Review and update your Background Check Authorization Forms regularly to ensure continued compliance with changing laws and regulations.

  7. 7

    Consider working with a reputable background check provider that understands compliance requirements and can help you navigate the legal landscape.

Key decisions before you file

Before you file a Background Check Authorization Form in Alabama, a few decisions shape the document: which option to choose and what each one means. The Background Check Authorization Form guide walks through them.

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Alabama Requirements for Background Check Authorization Form

  • FCRA Disclosure Requirement (15 U.S.C. § 1681b(b)(2)(A)(i))

    A clear and conspicuous disclosure must be made in writing to the applicant before the background check is conducted, in a document that consists solely of the disclosure.

  • FCRA Written Authorization (15 U.S.C. § 1681b(b)(2)(A)(ii))

    The employer must obtain written authorization from the applicant before procuring a consumer report for employment purposes.

  • FCRA Pre-Adverse Action Notice (15 U.S.C. § 1681b(b)(3)(A))

    Before taking adverse action based on information in a consumer report, the employer must provide the applicant with a copy of the report and a summary of their rights under the FCRA.

  • Alabama Criminal History Information Act Compliance (Alabama Code § 41-9-590 et seq.)

    Employers must comply with the Alabama Criminal History Information Act when accessing criminal history information through state repositories.

  • Alabama Open Records Law (Alabama Code § 36-12-40)

    Acknowledgment that certain records accessed may be subject to Alabama's Open Records Law, which governs access to public records.

  • EEOC Compliance Statement (Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq.)

    Statement that information obtained will not be used to discriminate in violation of any applicable federal or state equal employment opportunity law or regulation.

  • Alabama Age Discrimination Prohibition (Alabama Age Discrimination in Employment Act, Alabama Code § 25-1-20)

    Acknowledgment that information obtained will not be used to discriminate based on age in accordance with Alabama law.

  • Right to Request Additional Disclosures (15 U.S.C. § 1681d(b))

    Notice that the applicant has the right to request additional disclosures regarding the nature and scope of the investigation.

  • Investigative Consumer Report Disclosure (15 U.S.C. § 1681d(a))

    If an investigative consumer report will be procured, a statement that such a report may be obtained, including information about personal interviews with sources such as neighbors, friends, or associates.

  • Right to Obtain Report Copy (15 U.S.C. § 1681j)

    Notice that the applicant has the right to obtain a copy of the report upon submission of proper identification.

  • Dispute Procedures (15 U.S.C. § 1681i)

    Information on procedures for disputing incomplete or inaccurate information, including the consumer reporting agency's obligations to reinvestigate disputed information.

  • Alabama Workers' Compensation Verification (Alabama Workers' Compensation Act, Alabama Code § 25-5-1 et seq.)

    Disclosure that the background check may include verification of workers' compensation claims history in accordance with Alabama law.

  • Consumer Reporting Agency Information (15 U.S.C. § 1681g(c))

    Identification of the consumer reporting agency conducting the background check, including name, address, and telephone number.

  • Standalone Document Requirement (15 U.S.C. § 1681b(b)(2)(A)(i); Syed v. M-I, LLC, 853 F.3d 492 (9th Cir. 2017))

    Confirmation that the authorization form is a standalone document, not combined with other unrelated documents or information.

  • Alabama Drug Testing Compliance (Alabama Drug-Free Workplace Act, Alabama Code § 25-5-330 et seq.)

    If drug testing is part of the background check, acknowledgment of compliance with Alabama's drug testing laws and procedures.

  • Social Media Policy Disclosure (15 U.S.C. § 1681b(b)(2)(A)(i); Stored Communications Act, 18 U.S.C. § 2701 et seq.)

    If social media screening will be conducted, disclosure of this fact and confirmation that it will comply with applicable laws regarding social media privacy.

  • Ongoing Authorization Option (15 U.S.C. § 1681b(b)(2)(A)(ii))

    Optional provision allowing the applicant to authorize ongoing background checks throughout employment, with clear explanation that this authorization is voluntary.

  • Alabama E-Verify Requirement (Alabama Taxpayer and Citizen Protection Act, Alabama Code § 31-13-15)

    For employers required to use E-Verify in Alabama, acknowledgment that verification of employment eligibility will be conducted through the E-Verify system.

  • Ban-the-Box Compliance (EEOC Enforcement Guidance No. 915.002 (4/25/2012))

    While Alabama does not have a statewide ban-the-box law, acknowledgment that criminal history inquiries will comply with any applicable local ordinances and EEOC guidance on the use of arrest and conviction records.

  • Data Security Statement (15 U.S.C. § 1681w; FTC Disposal Rule, 16 C.F.R. § 682)

    Statement regarding the secure handling, storage, and disposal of personal information obtained through background checks in compliance with federal and state data protection requirements.

Frequently Asked Questions