Posted on March 2, 2017

Many nonprofit employers conduct background checks on potential employees and volunteers. Under the Fair Credit Reporting Act (“FCRA”), employers must obtain a signed Disclosure and Authorization form from an applicant before conducting a background check. The FCRA requires that the form be a completely standalone document, without any additional information. A court recently ruled that employers may not include in the form language asking the applicant to release the company from liability in connection with the background check. An employer that includes such language in the form rather than presenting it in a separate document is potentially liable for significant damages and court costs.