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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 Wyoming, 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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Wyoming 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.

  • Wyoming Criminal History Record Information Act Compliance (Wyoming Statutes § 7-19-106)

    Employers must comply with Wyoming's regulations regarding access to and use of criminal history record information for employment purposes.

  • Wyoming Employment Security Law (Wyoming Statutes § 27-3-601 et seq.)

    Employers must adhere to Wyoming's employment security laws when using background information for employment decisions.

  • Equal Employment Opportunity Commission Guidelines (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 employment discrimination based on race, color, religion, sex, or national origin.

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

    Background checks must comply with the ADA, which restricts employers from inquiring about medical information before making a job offer.

  • Wyoming Fair Employment Practices Act (Wyoming Statutes § 27-9-101 et seq.)

    Employers must comply with Wyoming's anti-discrimination laws when using background check information for employment decisions.

  • 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 any applicable federal or state equal opportunity law.

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

    The authorization form should inform applicants of their right to dispute the accuracy or completeness of any information in the consumer report.

  • Wyoming Data Privacy Considerations (Wyoming Statutes § 40-12-501 et seq.)

    Employers must handle personal data collected during background checks in accordance with Wyoming's data privacy standards.

  • 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 collected and reviewed.

  • Wyoming Professional Licensing Requirements (Wyoming Statutes § 33-1-101 et seq.)

    For certain professions in Wyoming, specific background check requirements may apply as part of licensing or certification processes.

  • Ban-the-Box Considerations (EEOC Enforcement Guidance No. 915.002)

    While Wyoming does not have a statewide ban-the-box law, the authorization form should be designed to comply with EEOC guidance on the use of arrest and conviction records.

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

    If the background check includes an investigative consumer report (interviews with neighbors, friends, etc.), additional disclosures are required about the nature and scope of the investigation.

  • Wyoming Workers' Compensation Verification (Wyoming Statutes § 27-14-101 et seq.)

    If the background check includes workers' compensation history, employers must comply with Wyoming's workers' compensation laws regarding the use of such information.

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

    If the background check includes driving records, employers must comply with federal restrictions on the disclosure and use of personal information from motor vehicle records.

  • Wyoming Department of Transportation Regulations (Wyoming Statutes § 31-7-401 et seq.)

    For positions involving driving in Wyoming, employers must comply with state-specific regulations regarding access to and use of driving records.

  • Consumer Financial Protection Bureau Oversight (12 U.S.C. § 5481 et seq.)

    Background check authorizations must comply with CFPB regulations and guidance regarding the collection and use of consumer financial information.

  • Wyoming Consumer Protection Act (Wyoming Statutes § 40-12-101 et seq.)

    Employers must ensure that background check practices do not constitute unfair or deceptive trade practices under Wyoming law.

Frequently Asked Questions