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 Nevada, 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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Nevada 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.
Nevada Consumer Reporting Agencies Regulation (NRS 598C.150)
Nevada law regulates consumer reporting agencies and the information they can report, including limitations on reporting certain criminal history information.
Nevada Equal Rights Commission Compliance (NRS 613.330)
Background checks must comply with Nevada's anti-discrimination laws, which prohibit employment discrimination based on race, color, religion, sex, sexual orientation, gender identity or expression, age, disability, or national origin.
Nevada Private Investigator Licensing (NRS 648.060)
If using a third party to conduct background investigations in Nevada, ensure they are properly licensed as required by Nevada law.
EEOC Compliance (42 U.S.C. § 2000e et seq.)
Background checks must comply with federal anti-discrimination laws enforced by the Equal Employment Opportunity Commission, requiring that background checks not have a disparate impact on protected classes.
Nevada Criminal History Records (NRS 179A.100)
Employers must follow Nevada laws regarding access to and use of criminal history records for employment purposes.
Ban-the-Box Compliance (Various local ordinances)
While Nevada does not have a statewide ban-the-box law for private employers, the authorization form should acknowledge any applicable local ordinances that may restrict when criminal history information can be requested.
Nevada Medical Marijuana Law (NRS 453A.800)
The form should acknowledge Nevada's medical marijuana laws, which provide certain protections for medical marijuana cardholders, though employers may still maintain drug-free workplace policies.
FCRA Scope of Authorization (15 U.S.C. § 1681b(b)(2))
The authorization must clearly specify the scope of the background check and what types of information may be obtained (e.g., credit history, criminal records, employment verification).
Nevada Personal Information Privacy (NRS 603A.010 et seq.)
The form must comply with Nevada's laws regarding the collection, use, and protection of personal information.
FCRA Investigative Consumer Report Notice (15 U.S.C. § 1681d)
If an investigative consumer report will be procured (involving personal interviews), additional disclosures about the nature and scope of the investigation must be provided.
Nevada Right to Inspect Records (NRS 613.075)
The form should inform applicants of their right under Nevada law to inspect records containing their personal information that are maintained by the employer.
FCRA Accuracy and Dispute Resolution (15 U.S.C. § 1681i)
The form should inform applicants of their right to dispute inaccurate information in their background check and the process for doing so.
Nevada Employment Agencies Regulation (NRS 611.020 et seq.)
If using an employment agency that conducts background checks, ensure compliance with Nevada's regulations governing employment agencies.
Driver's Privacy Protection Act (18 U.S.C. § 2721 et seq.)
If obtaining driving records as part of the background check, the form must comply with federal restrictions on the disclosure of personal information from state motor vehicle records.
Nevada Workers' Compensation Records (NRS 616D.330)
The form should address access to workers' compensation records, which are subject to specific confidentiality requirements under Nevada law.
FCRA Disposal Rule (16 CFR Part 682)
The form should acknowledge the employer's obligation to securely dispose of background check information when no longer needed.
Nevada Deceptive Trade Practices (NRS 598.0915 et seq.)
The form must not contain any deceptive or misleading statements that would violate Nevada's consumer protection laws.