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 Michigan, 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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Michigan 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 a consumer report, the employer must provide the applicant with a copy of the report and a summary of their rights under the FCRA.
Michigan Social Security Number Privacy Act (MCL 445.81 et seq.)
Employers must have a privacy policy in place that ensures the confidentiality of social security numbers collected during background checks.
Michigan Internet Privacy Protection Act (MCL 37.271 et seq.)
Employers cannot request an employee or applicant to grant access to, allow observation of, or disclose information that allows access to personal internet accounts.
Michigan Bullard-Plawecki Employee Right to Know Act (MCL 423.501 et seq.)
Employees have the right to review their personnel records, which may include background check information used for employment decisions.
EEOC Compliance (42 U.S.C. § 2000e et seq. (Title VII of the Civil Rights Act))
Background checks must comply with federal anti-discrimination laws, ensuring they do not have a disparate impact on protected classes.
Michigan Elliott-Larsen Civil Rights Act (MCL 37.2101 et seq.)
Prohibits discrimination in employment based on religion, race, color, national origin, age, sex, height, weight, or marital status, which applies to how background check information is used.
Americans with Disabilities Act (ADA) (42 U.S.C. § 12101 et seq.)
Medical inquiries must be job-related and consistent with business necessity, affecting how medical information can be requested in background checks.
Michigan Persons with Disabilities Civil Rights Act (MCL 37.1101 et seq.)
Prohibits discrimination against individuals with disabilities in employment, including in the background check process.
FCRA Accuracy and Dispute Resolution (15 U.S.C. § 1681i)
Employers must have procedures in place for applicants to dispute inaccurate information in their background check reports.
Michigan Criminal Background Check Limitations (MCL 338.43 et seq.)
Michigan law restricts how criminal history information can be used in employment decisions, particularly for certain occupations.
Driver's Privacy Protection Act (18 U.S.C. § 2721 et seq.)
Restricts the disclosure and use of personal information in motor vehicle records, which may be accessed during background checks.
Michigan Vehicle Code - Driving Record Privacy (MCL 257.208c)
Regulates access to and use of driving records that may be obtained during background checks.
Ban the Box Considerations (Various local ordinances (e.g., Ann Arbor, Detroit, Kalamazoo))
While Michigan does not have a statewide ban-the-box law for private employers, some municipalities have enacted ordinances limiting when criminal history can be requested.
FCRA Disposal Rule (16 CFR Part 682)
Requires proper disposal of information in consumer reports and records to protect against unauthorized access or use.
Michigan Identity Theft Protection Act (MCL 445.63 et seq.)
Requires businesses to implement reasonable measures to protect personal information and properly dispose of data collected during background checks.
FCRA Summary of Rights Provision (15 U.S.C. § 1681g(c))
Employers must provide applicants with a summary of their rights under the FCRA when obtaining background check authorization.
Michigan Consumer Protection Act (MCL 445.901 et seq.)
Prohibits unfair, unconscionable, or deceptive practices in the conduct of trade or commerce, which may apply to background check processes.
FCRA Investigative Consumer Report Requirements (15 U.S.C. § 1681d)
Additional disclosure requirements apply when obtaining investigative consumer reports that include personal interviews with neighbors, friends, or associates.