What are the requirements for conducting background checks on potential employees?

In Mississippi, employers are required to be in compliance with the Federal Fair Credit Reporting Act when conducting background checks on potential employees. This act allows employers to obtain and use consumer reports (sometimes referred to as “background checks”) when making employment decisions. Employers may use consumer reports as part of the pre-employment process, but they must first make sure that the consumer report used is accurate and up to date. Before the report is used, the employer must provide a written disclosure to the potential employee that the report will be used for employment decisions and must also obtain written permission from the potential employee. Employers cannot use a consumer report that is more than seven years old, unless the position the applicant is applying for has an annual salary of more than $75,000. If a potential employee is denied employment based on the results of the consumer report, the employer must notify the applicant in writing, as well as provide the contact information of the consumer reporting agency providing the report. Lastly, the employer must ensure that all information received from the consumer reporting agency is kept secure and confidential. If the employer does not follow all of these requirements, they may be subject to fines, penalties, or other legal action.

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