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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 Wisconsin, 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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Wisconsin 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.

  • Wisconsin Fair Employment Act Compliance (Wis. Stat. § 111.31-111.395)

    Employers must ensure background checks do not discriminate against protected classes and only consider convictions substantially related to the particular job.

  • Wisconsin Arrest and Conviction Record Protections (Wis. Stat. § 111.335)

    Employers cannot discriminate against applicants based on arrest or conviction records unless the charges are substantially related to the job.

  • Wisconsin Caregiver Background Check Law (Wis. Stat. § 50.065)

    Entities providing care for vulnerable populations must conduct background checks on caregivers and disclose this requirement to applicants.

  • Equal Employment Opportunity Commission Guidelines (Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq.)

    Background checks must comply with federal anti-discrimination laws and should be job-related and consistent with business necessity.

  • 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.

  • Wisconsin Social Media Privacy Protection (Wis. Stat. § 995.55)

    Employers cannot request or require applicants to disclose access information for personal social media accounts as part of a background check.

  • 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 equal opportunity laws.

  • Wisconsin Criminal History Record Information Access (Wis. Stat. § 165.82)

    Employers must follow state procedures for accessing criminal history record information maintained by the Wisconsin Department of Justice.

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

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

  • Wisconsin Employment Peace Act (Wis. Stat. § 111.01-111.19)

    Background check procedures must not interfere with employees' rights to self-organization and collective bargaining.

  • Ban the Box Considerations (Various local ordinances (e.g., Madison General Ordinance 39.03(8)))

    While Wisconsin does not have a statewide 'ban the box' law for private employers, authorization forms should acknowledge any applicable local ordinances that may restrict when criminal history inquiries can be made.

  • FCRA Disposal Rule (16 C.F.R. § 682.3)

    Employers must properly dispose of background check information derived from consumer reports to protect against unauthorized access or use.

  • Wisconsin Personal Information Protection Act (Wis. Stat. § 134.98)

    Employers must take reasonable measures to protect personal information collected during background checks from unauthorized access or disclosure.

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

    If conducting an investigative consumer report (involving personal interviews), additional disclosures about the nature and scope of the investigation must be provided.

  • Wisconsin Employee Right to Know Law (Wis. Stat. § 103.13)

    Employees have the right to access their personnel files, which may include background check information used for employment decisions.

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

    Authorization forms should inform applicants of their right to dispute the accuracy or completeness of information in consumer reports.

  • Wisconsin Administrative Code - Fair Employment (Wis. Admin. Code DWD § 218)

    Background check procedures must comply with Wisconsin's administrative rules regarding fair employment practices and non-discrimination.

Frequently Asked Questions