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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 Arizona, 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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Arizona 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.

  • FCRA Post-Adverse Action Notice (15 U.S.C. § 1681m(a))

    After taking adverse action based on information in a consumer report, the employer must provide notice of the adverse action, contact information of the consumer reporting agency, a statement that the agency did not make the decision, and notice of the applicant's right to dispute the accuracy of the information.

  • Arizona Employment Protection Act (A.R.S. § 23-1361)

    Employers must provide written notice to applicants that they intend to use the consumer report for employment purposes and must obtain the applicant's written authorization.

  • Arizona Consumer Reporting Agencies Law (A.R.S. § 44-1691 et seq.)

    Regulates the collection, maintenance, and dissemination of consumer information, including requirements for disclosure to consumers.

  • Equal Employment Opportunity Commission Guidelines (Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq.; Americans with Disabilities Act, 42 U.S.C. § 12101 et seq.; Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq.)

    Background checks must not discriminate against applicants based on race, color, national origin, sex, religion, disability, genetic information, or age.

  • Arizona Civil Rights Act (A.R.S. § 41-1461 et seq.)

    Prohibits employment discrimination based on race, color, religion, sex, age, disability, or national origin, which applies to how background check information is used in employment decisions.

  • Ban the Box Provisions (Tucson City Code; Phoenix City Code)

    While Arizona does not have a statewide 'ban the box' law for private employers, certain localities like Tucson and Phoenix have adopted policies for public employment that delay criminal history inquiries until later in the hiring process.

  • Arizona Medical Marijuana Act (A.R.S. § 36-2813)

    Employers cannot discriminate against registered qualifying patients for positive drug tests for marijuana, unless the employer would lose a monetary or licensing benefit under federal law.

  • Driver's Privacy Protection Act (18 U.S.C. § 2721 et seq.)

    Restricts the disclosure of personal information in motor vehicle records, requiring specific consent for certain uses including employment.

  • Arizona Department of Public Safety Background Check Requirements (A.R.S. § 41-1750)

    Specific requirements for fingerprint-based background checks for certain positions, including those working with vulnerable populations.

  • Arizona Identity Theft Protection Requirements (A.R.S. § 44-7501)

    Employers must take reasonable measures to protect the personal identifying information of applicants collected during background checks.

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

    Additional disclosure requirements apply when obtaining an investigative consumer report, which includes interviews with neighbors, friends, or associates about an applicant's character, reputation, etc.

  • FCRA Disposal Rule (16 C.F.R. Part 682)

    Requires proper disposal of information in consumer reports and records to protect against unauthorized access or use of the information.

  • Arizona E-Verify Requirement (A.R.S. § 23-214)

    All employers in Arizona must verify the employment eligibility of newly hired employees through the E-Verify program, which may involve background verification.

  • Arizona Employment Records Statute (A.R.S. § 23-350)

    Employers must maintain personnel records, including background check authorizations, and allow employees to inspect their records upon reasonable request.

  • FCRA Statute of Limitations (15 U.S.C. § 1681p)

    Legal actions for FCRA violations must be brought within two years after the date of discovery, or five years after the date of the violation, whichever is earlier.

  • Arizona Statute of Limitations for Contract Claims (A.R.S. § 12-548)

    Claims based on written contracts, which may include background check authorizations, must be brought within six years.

  • FCRA Remedies and Penalties (15 U.S.C. § 1681n, § 1681o)

    Violations of the FCRA can result in actual damages, statutory damages, punitive damages, and attorney's fees and costs.

Frequently Asked Questions