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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 Louisiana, 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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Louisiana 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.

  • Louisiana Employment Privacy Law (La. R.S. 23:291)

    Employers must provide written notice to applicants that a background check will be conducted and obtain written authorization.

  • Louisiana Criminal Background Check Limitations (La. R.S. 37:2950)

    Restrictions on considering certain criminal history information for employment decisions, particularly for positions not related to the criminal offense.

  • Louisiana Ban-the-Box for State Employment (La. R.S. 42:1701)

    State employers are prohibited from inquiring about criminal history on initial application forms, though this does not apply to private employers.

  • EEOC Compliance Statement (42 U.S.C. § 2000e et seq.)

    Background checks must comply with federal anti-discrimination laws, including Title VII of the Civil Rights Act, which prohibits discrimination based on race, color, national origin, sex, and religion.

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

    Background checks must comply with the ADA, which restricts employers from making disability-related inquiries before a conditional job offer is made.

  • Louisiana Medical Privacy Provisions (La. R.S. 40:1299.96)

    Restrictions on obtaining and using medical information in employment decisions without specific authorization.

  • FCRA Scope of Authorization (15 U.S.C. § 1681b(b)(2))

    The authorization must clearly specify the scope of the background check, including whether it will cover credit history, criminal records, employment verification, etc.

  • Louisiana Credit Reporting Limitations (La. R.S. 23:302)

    Restrictions on using credit information for employment purposes unless substantially related to the position.

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

    If an investigative consumer report will be requested, additional disclosures about the nature and scope of the investigation must be provided.

  • Louisiana Social Media Privacy (La. R.S. 51:1951-1955)

    Employers are restricted from requesting or requiring access to personal social media accounts of employees or applicants.

  • 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 action, contact information for the consumer reporting agency, and information about the applicant's rights.

  • Louisiana Employment Records Privacy (La. R.S. 23:1127)

    Requirements for maintaining confidentiality of employment records and background check information.

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

    Requirements for proper disposal of information in consumer reports to protect against unauthorized access or use.

  • Louisiana Data Breach Notification Law (La. R.S. 51:3071-3077)

    Requirements for notification in the event of a breach of personal information collected during background checks.

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

    Provisions allowing applicants to dispute inaccurate information in background check reports.

  • Louisiana Equal Employment Opportunity (La. R.S. 23:301-369)

    State law prohibiting employment discrimination, which affects how background check information can be used in hiring decisions.

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

    Time limitations for bringing legal actions for violations of the FCRA related to background checks.

Frequently Asked Questions