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.
0/5000
Key Things to Know
- 1
The Background Check Authorization Form must be a standalone document, separate from your employment application and other onboarding paperwork.
- 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
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
Different types of background checks (criminal, credit, driving records, etc.) may have different legal requirements and restrictions depending on your state and industry.
- 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
Review and update your Background Check Authorization Forms regularly to ensure continued compliance with changing laws and regulations.
- 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 Minnesota, a few decisions shape the document: which option to choose and what each one means. The Background Check Authorization Form guide walks through them.
Open the Background Check Authorization Form guideCustomize your Background Check Authorization Form Template with DocDraft
Minnesota 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.
Minnesota Criminal Background Check Law (Minnesota Statutes § 364.05)
Employers must inform applicants if they will be subject to a criminal background check and provide notice of the right to request a copy of the background check report.
Minnesota Ban-the-Box Law (Minnesota Statutes § 364.021)
Employers cannot inquire into or consider an applicant's criminal history until after the applicant has been selected for an interview or a conditional job offer has been made.
Minnesota Human Rights Act (Minnesota Statutes § 363A.08)
Prohibits discrimination in employment based on protected characteristics, including how criminal history information is used in employment decisions.
FCRA Pre-Adverse Action Notice (15 U.S.C. § 1681b(b)(3)(A))
Before taking adverse action based on a consumer report, employers must provide the applicant with 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))
After taking adverse action based on a consumer report, employers must provide notice to the applicant about the action taken and information about the consumer reporting agency.
Minnesota Access to Consumer Reports (Minnesota Statutes § 13C.01)
Minnesota residents have the right to request a free copy of their consumer report once every 12 months from each consumer reporting agency.
Minnesota Data Practices Act (Minnesota Statutes § 13.01 et seq.)
Regulates how private and public employers collect, maintain, use, and disseminate data about individuals, including background check information.
EEOC Guidance Compliance (42 U.S.C. § 2000e et seq. (Title VII of the Civil Rights Act))
Background checks must comply with federal anti-discrimination laws and EEOC guidance, which requires that any employment screening be job-related and consistent with business necessity.
Minnesota Drug and Alcohol Testing in the Workplace Act (Minnesota Statutes § 181.950-181.957)
If background checks include drug testing, employers must comply with specific notice, policy, and procedural requirements.
FCRA Investigative Consumer Report Disclosure (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.
Minnesota Expungement Law Consideration (Minnesota Statutes § 609A.03)
Employers must consider whether an applicant's criminal record has been expunged or sealed when making employment decisions.
FCRA Accuracy and Dispute Resolution (15 U.S.C. § 1681e(b) and § 1681i)
Consumer reporting agencies must follow reasonable procedures to ensure maximum possible accuracy, and consumers have the right to dispute inaccurate information.
Minnesota Limitation on Credit History Use (Minnesota Statutes § 181.981)
Restricts employers from using credit information in employment decisions unless it is substantially job-related.
FCRA Disposal Rule (15 U.S.C. § 1681w)
Requires proper disposal of information in consumer reports and records to protect against unauthorized access or use.
Minnesota Private Detective License Requirement (Minnesota Statutes § 326.3381)
If an employer conducts their own background investigations rather than using a consumer reporting agency, they may need to comply with private detective licensing requirements.
FCRA Summary of Rights Provision (15 U.S.C. § 1681g(c))
A copy of 'A Summary of Your Rights Under the Fair Credit Reporting Act' must be provided to the applicant along with the disclosure and authorization form.
Minnesota Social Media Privacy Law (Minnesota Statutes § 181.53)
Prohibits employers from requiring applicants to provide passwords to personal social media accounts as part of a background check.
Americans with Disabilities Act Compliance (42 U.S.C. § 12112(d))
Background checks that include medical information must comply with ADA restrictions on pre-employment medical inquiries.