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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 Kentucky, 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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Kentucky 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.

  • Kentucky Criminal Background Check Law (KRS 335B.020)

    Kentucky employers must comply with state regulations regarding criminal background checks, including limitations on considering certain criminal records.

  • Kentucky Fair Credit Reporting Compliance (KRS 367.363)

    Kentucky follows federal FCRA guidelines but may have additional state-specific requirements for consumer reporting.

  • Kentucky Employment Privacy Protection (KRS 61.878)

    Employers must respect privacy rights of applicants and employees when conducting background checks.

  • Equal Employment Opportunity Commission Guidelines (42 U.S.C. § 2000e et seq.)

    Background checks must comply with federal anti-discrimination laws, including Title VII of the Civil Rights Act of 1964.

  • Americans with Disabilities Act Compliance (42 U.S.C. § 12101 et seq.)

    Background checks must not discriminate against qualified individuals with disabilities.

  • Kentucky Civil Rights Act Compliance (KRS 344.040)

    Background checks must comply with Kentucky's anti-discrimination laws, which prohibit discrimination based on race, color, religion, national origin, sex, and disability.

  • Ban-the-Box Considerations (Louisville Metro Ordinance § 92.02)

    While Kentucky does not have a statewide ban-the-box law for private employers, Louisville has an ordinance that restricts when employers can inquire about criminal history.

  • 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 federal or state equal opportunity law.

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

    Proper disposal of background check information is required to protect privacy and prevent unauthorized access to consumer information.

  • Kentucky Data Breach Notification Law (KRS 365.732)

    Employers must comply with Kentucky's requirements for notifying individuals of security breaches involving their personal information.

  • Social Security Number Privacy (KRS 61.932)

    Restrictions on the collection, use, and disclosure of Social Security numbers in background checks.

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

    If obtaining driving records as part of a background check, employers must comply with federal restrictions on the disclosure and use of personal information from motor vehicle records.

  • Kentucky Expungement Law Compliance (KRS 431.073)

    Employers must be aware of Kentucky's expungement laws, which may limit consideration of certain expunged criminal records.

  • Consumer Financial Protection Bureau Oversight (12 C.F.R. Part 1022)

    Background checks must comply with CFPB regulations regarding consumer reports used for employment purposes.

  • Kentucky Personal Information Security and Breach Investigation (KRS 61.931-934)

    Requirements for safeguarding personal information collected during background checks and procedures for investigating breaches.

  • Gramm-Leach-Bliley Act Compliance (15 U.S.C. § 6801-6809)

    If financial information is included in background checks, employers must comply with privacy provisions protecting consumers' financial information.

  • Kentucky Employment Records Retention (KRS 171.410-740)

    Requirements for retaining employment records, including background check authorizations and results.

Frequently Asked Questions