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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 Illinois, 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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Illinois Requirements for Background Check Authorization Form

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

    The form must include a clear and conspicuous disclosure that a consumer report may be obtained for employment purposes, and this disclosure must be in a standalone document.

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

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

  • Illinois Human Rights Act Compliance (775 ILCS 5/2-102)

    The form must comply with the Illinois Human Rights Act which prohibits discrimination in employment based on protected characteristics revealed in background checks.

  • Illinois Employee Credit Privacy Act (820 ILCS 70/10)

    The form must acknowledge that employers cannot inquire about or use an employee's credit history as a basis for employment decisions unless specific exceptions apply.

  • Illinois Criminal Identification Act (20 ILCS 2630/5.2)

    The form must comply with provisions regarding the use of criminal history information in employment decisions, including limitations on considering sealed or expunged records.

  • Job Opportunities for Qualified Applicants Act (820 ILCS 75/15)

    The form should acknowledge that employers with 15 or more employees cannot inquire about an applicant's criminal history until after determining the applicant is qualified and notifying them of selection for an interview.

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

    The form should inform applicants that before taking adverse action based on a consumer report, the employer will provide 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))

    The form should inform applicants that after taking adverse action based on a consumer report, the employer will provide notice of the action, contact information for the consumer reporting agency, and information about disputing the report's accuracy.

  • Illinois Personal Information Protection Act (815 ILCS 530/1 et seq.)

    The form must acknowledge the employer's obligation to protect personal information collected during the background check process from unauthorized access or disclosure.

  • Illinois Right to Privacy in the Workplace Act (820 ILCS 55/1 et seq.)

    The form must respect the applicant's right to privacy in the workplace, including limitations on inquiring about lawful activities outside of work.

  • Illinois Cannabis Regulation and Tax Act (410 ILCS 705/10-50)

    The form should acknowledge that employers cannot discriminate against applicants solely for the lawful use of cannabis off-premises during nonworking hours, though employers may still maintain drug-free workplace policies.

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

    If an investigative consumer report will be procured, the form must disclose this fact and inform the applicant of their right to request additional disclosures and a summary of the scope and substance of the report.

  • FCRA Information Source Disclosure (15 U.S.C. § 1681b(b)(2)(B))

    The form must disclose the name, address, and phone number of the consumer reporting agency that will furnish the report.

  • Illinois Biometric Information Privacy Act (740 ILCS 14/1 et seq.)

    If biometric identifiers will be collected as part of the background check, the form must include specific disclosures and obtain written consent in compliance with BIPA.

  • Equal Employment Opportunity Commission Guidelines (42 U.S.C. § 2000e et seq. (Title VII of the Civil Rights Act))

    The form should acknowledge compliance with EEOC guidelines regarding the use of background checks in a manner that does not result in disparate impact discrimination.

  • Illinois Artificial Intelligence Video Interview Act (820 ILCS 42/1 et seq.)

    If AI analysis will be used in conjunction with background checks for video interviews, the form must disclose this fact and obtain consent.

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

    If driving records will be obtained, the form must comply with the DPPA regarding the collection and use of personal information from motor vehicle records.

  • Illinois Wage Payment and Collection Act (820 ILCS 115/1 et seq.)

    The form must not include any provisions that would violate the IWPCA, such as unauthorized deductions related to background check costs.

  • Illinois Freedom to Work Act (820 ILCS 90/1 et seq.)

    The form should not include provisions related to non-compete agreements for low-wage employees, which could be triggered based on background check results.

  • FCRA Accuracy and Dispute Resolution Rights (15 U.S.C. § 1681i)

    The form should inform applicants of their right to dispute the accuracy or completeness of any information in the consumer report directly with the consumer reporting agency.

Frequently Asked Questions