Employment Screening Compliance

Employment background screening is not simply a matter of ordering a report. Employers assume important responsibilities when requesting, reviewing, and acting upon consumer report information.

Horizon believes our responsibility extends beyond delivering search results. We provide employer clients with practical education, process recommendations, sample resources, and access to authoritative information that can help support a consistent, well-documented screening program.

Horizon is a consumer reporting agency and professional screening partner—not the employer’s attorney. Final responsibility for screening criteria, forms, notices, employment decisions, and compliance with applicable law remains with the employer.

The Employment Screening Compliance Framework

Employers should consider the entire screening process:

1. Establish Permissible Purpose
   Order reports only for a lawful, authorized employment purpose.
2. Provide Disclosure and Obtain Authorization
   Give the individual a clear disclosure and obtain written authorization before ordering the report.
3. Select Job-Related Screening Services
   Build screening programs around the duties, risks, and requirements of each position.
4. Review Reports Consistently
   Apply screening criteria consistently and consider applicable federal, state, local, and industry-specific requirements.
5. Follow the Adverse-Action Process
   When a report may contribute to an unfavorable decision, provide the required pre-adverse-action materials and an appropriate opportunity for review before making the decision final.
6. Protect and Dispose of Information Securely
   Limit report access, maintain appropriate records, and follow secure retention and disposal procedures.

Disclosure and Authorization

The employer must provide the appropriate disclosure and obtain authorization before ordering an employment consumer report.

The disclosure should be clear and conspicuous and should generally stand on its own. The authorization should be maintained separately, and sensitive identifying information should be collected through a secure process.

Horizon provides employer clients with separate sample Disclosure and Authorization documents as educational examples. Employers should have their legal department or qualified employment counsel review and approve all documents before use, particularly when hiring in multiple jurisdictions.

Understanding Adverse Action

Adverse action generally involves two separate stages:

Pre-Adverse Action

Before making an unfavorable employment decision based in whole or in part on a consumer report, the employer generally provides:

• A pre-adverse-action notice
• A complete copy of the consumer report being considered
• The current Summary of Rights under the FCRA
• Any additional state or local materials that may apply
• A reasonable opportunity for the individual to review or dispute the information

Final Adverse Action

After the review period and consideration of any dispute or additional information, the employer provides a final adverse-action notice if the unfavorable decision remains.

The employer—not Horizon—makes the employment decision.

Federal, State and Local Requirements

FCRA compliance is only one component of employment screening. Employers may also need to consider:

• Equal employment opportunity requirements
• Fair-chance and ban-the-box laws
• State and local notice requirements
• Restrictions on criminal and credit information
• Industry-specific screening obligations
• Privacy, retention, and secure-disposal requirements

Employers should review their screening program with qualified legal counsel, especially when hiring in multiple jurisdictions.

Horizon employer clients receive access to our comprehensive Employer Compliance Manual. The guide includes practical compliance recommendations, adverse-action guidance, audit checklists, official government resources, and educational sample documents.

The manual is an employer reference document—not an applicant form—and does not replace advice from qualified legal counsel.