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
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The Background Check Authorization Form must be a standalone document, separate from your employment application and other onboarding paperwork.
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You must provide a clear disclosure that you will be conducting a background check and obtain written authorization before proceeding with any background screening.
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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.
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Different types of background checks (criminal, credit, driving records, etc.) may have different legal requirements and restrictions depending on your state and industry.
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Keep signed authorization forms on file for at least the duration of employment plus any applicable statute of limitations period for potential claims.
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Review and update your Background Check Authorization Forms regularly to ensure continued compliance with changing laws and regulations.
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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 Iowa, 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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Iowa 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.
Iowa Criminal History Check Consent (Iowa Code § 692.2)
Employers must obtain written consent from applicants before requesting criminal history information from the Iowa Division of Criminal Investigation.
Iowa Ban-the-Box for Public Employment (Iowa Executive Order 70 (2019))
State agencies in Iowa are prohibited from inquiring about criminal history on job applications, though private employers are not subject to this restriction.
Iowa Civil Rights Act Compliance (Iowa Code § 216.6)
Background checks must not be used in a manner that discriminates against protected classes under Iowa law, including race, color, religion, creed, national origin, sex, pregnancy, sexual orientation, gender identity, and disability.
EEOC Guidance Compliance (Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq.)
Background checks must comply with federal anti-discrimination laws and EEOC guidance, which requires that any background check policy be job-related and consistent with business necessity.
Iowa Drug Testing Limitations (Iowa Code § 730.5)
If the background check includes drug testing, employers must comply with Iowa's drug testing law, which includes specific notice and procedural requirements.
FCRA Certification to Consumer Reporting Agency (15 U.S.C. § 1681b(b)(1))
Employers must certify to the consumer reporting agency that they will comply with FCRA requirements and will not use the information in violation of any applicable federal or state equal employment opportunity law.
FCRA Summary of Rights Provision (15 U.S.C. § 1681g(c))
The authorization form must include a summary of the consumer's rights under the FCRA or indicate that such a summary will be provided.
Iowa Expunged Records Protection (Iowa Code § 907.9)
Background check authorizations should acknowledge that expunged criminal records in Iowa cannot be considered in employment decisions.
FCRA Investigative Consumer Report Notice (15 U.S.C. § 1681d)
If an investigative consumer report (involving personal interviews) will be obtained, additional disclosures about the nature and scope of the investigation must be provided.
Iowa Social Security Number Protection (Iowa Code § 715C.1)
The authorization form must protect the confidentiality of Social Security numbers and comply with Iowa's personal information security breach protection law.
FCRA Adverse Action Requirements (15 U.S.C. § 1681m)
After taking adverse action based on information in a consumer report, the employer must provide notice of the adverse action, contact information for the consumer reporting agency, and information about the applicant's rights to dispute the accuracy of the report.
Iowa Arrest Record Limitations (Iowa Code § 216.6(1)(a))
Background check authorizations should acknowledge that under Iowa law, employers generally cannot consider arrest records that did not result in conviction unless the charges are pending.
Driver's Privacy Protection Act Compliance (18 U.S.C. § 2721 et seq.)
If the background check includes driving records, the authorization must comply with the Driver's Privacy Protection Act, which restricts the disclosure of personal information in motor vehicle records.
Iowa Workers' Compensation Records Access (Iowa Code § 85.27)
If workers' compensation records will be accessed as part of the background check, specific authorization for this purpose should be included in compliance with Iowa law.
FCRA Standalone Document Requirement (15 U.S.C. § 1681b(b)(2)(A)(i); Gilberg v. California Check Cashing Stores, LLC)
The disclosure and authorization must be in a standalone document, not embedded in an employment application or other documents containing additional information.
Iowa Private Right of Action Notice (Iowa Code § 715A.8)
The authorization form should inform applicants of their private right of action under Iowa law for violations of privacy and unauthorized disclosure of personal information.
FCRA Statute of Limitations Notice (15 U.S.C. § 1681p)
The authorization form should inform applicants of the FCRA's statute of limitations for bringing civil actions against employers for violations.