SOFTWARE/PROCESSING
Release Forms - Maintaining Employee Files

As every employer knows, the Fair Credit Reporting Act (FCRA) and Fair and Accurate Credit Transactions Act (FACT) require that employers advise applicants via a Notice and Disclosure Statement that a consumer report may be obtained on them. The employer must have this document signed by the applicant prior to requesting any type of background report.

What employers might not be aware of though is the importance of retaining these documents on file for a period of time. If the employee is terminated, liability issues could arise from poor record-keeping practices. Retention of the signed release will prevent any question as to the legality of the employer's request of consumer information on the employee. Additionally, InfoMart is periodically audited for compliance purposes by various entities. When this occurs, we must in turn audit the employer whose employees' release forms are being requested. Failure to have the necessary forms on hand results in non-compliance with Federal law and seriously jeopardizes the employer's relationship with InfoMart. There are stiff penalties, both criminal and civil, imposed by the Federal Trade Commission for incidents that result from non-compliance.

How can your company remain compliant? Maintain accurate employee files that contain the signed Disclosure and Release form. If the applicant is hired, InfoMart recommends keeping the documents on file for the entire length of employment. If the applicant is not hired, we recommend keeping the documents on file for a period of two years.

If you have any questions regarding release forms, the FCRA, or legal compliance, please contact an InfoMart Customer Service Representative at 770-984-2727 option 2 or customerservice@infomart-usa.com.