Since the company's beginnings in 1985, LABORCHEX has vigorously and consistently complied with various federal laws that apply to our business in the human resources industry. For our clients to effectively and legally order employment screenings and use the results found in our investigations, it is imperative that they, too, comply with these laws and regulations.
Fair Credit Reporting Act (FCRA)
The Fair Credit Reporting Act (FCRA) is a federal mandate that is designed to promote accuracy in and ensure the privacy of information used in consumer reports (such as credit reports and employment background screenings). Recent amendments to the FCRA expand the rights of consumers (in the case of LABORCHEX, the job applicant who has authorized the employment screening is considered to be the "consumer") and places additional requirements on Consumer Reporting Agencies (CRAs). A CRA is a company that gathers and sells information about individuals, such as details of a credit history or criminal record. LABORCHEX provides employment screening reports, which are considered "consumer reports," and therefore is considered a CRA. The most common CRA is a credit bureau.
The Americans With Disabilities Act (ADA)
The Americans with Disabilities Act is wide-ranging legislation intended to make American society more accessible to people with disabilities. Regarding employment, Title I of the ADA states that businesses must provide reasonable accommodations to protect the rights of individuals with disabilities in all aspects of employment. Possible changes may include restructuring jobs, altering the layout of workstations, or modifying equipment. Other employment-related aspects of ADA may include the application process, hiring, wages, benefits, medical examinations, and drug testing.
The Federal Driver's Privacy Protection Act (DPPA)
The Driver's Privacy Protection Act regulates the release and sharing of information that appears on motor vehicle records (driver's license reports). The DPPA regulates: 1.How the motor vehicle departments of the individual states provide such records to requestors; 2. How recipients of these records (such as employment screening companies like LABORCHEX) subsequently dispense the details provided in them.
The main purpose of the DPPA is to limit the release of a driver's personal information, thus hopefully reducing and/or eliminating unlawful use of such information. States differ in the types and extent of information they provide, but this can include a home address, date of birth, social security number, photo, etc. LABORCHEX policy is to not forward any driving records with home addresses.
Website Usage By A Client's Employees
Using the secure LABORCHEX website to order employment screenings and receive results is the most efficient way for clients to meet their background investigation goals. In order to access their company's files within the LABORCHEX website, designated employees must use an assigned User name and Password to log in. The client determines which (and how many) employees have access to this information.
In order to use the website for this purpose, clients and all "End Users" (the actual person(s) who will be on the website) must both sign an Electronic Access Agreement. This agreement clearly addresses the legal and LABORCHEX corporate policies regarding website usage, including issues such as privacy, confidentiality, distribution of information, etc. By signing this agreement, clients and their End Users acknowledge that they will abide by federal laws (such as the above mentioned FCRA, ADA, and DPPA) and LABORCHEX policies when electronically accessing, requesting, and reviewing information provided by LABORCHEX. A separate Electronic Access Agreement must be completed for each person who will use the website.