FACTA: Employee Investigations

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David A. Szwak
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Joined: Tue Jul 26, 2005 4:15 am

FACTA: Employee Investigations

Post by David A. Szwak »

[uf4][bf4]Employee Investigations[/bf4][/uf4]

Employer’s investigations of employees now excluded from the FCRA. FACTA amended the FCRA to exclude certain communications related to employers’ investigation of employees. To fall within the exclusion the communication must be made to an employer, and must be in connection with an investigation of one of the following:

∙ suspected misconduct relating to employment;
∙ compliance with federal, state, or local laws;
∙ compliance with the rules of a self-regulatory organization; or
∙ compliance with the preexisting written policies of the employer.

Furthermore, the communication must not be for the purpose of investigating a consumer’s creditworthiness, credit standing, or credit capacity (in other words, the communication must only bear on the employee’s character, general reputation, personal characteristics, or mode of living) and must not be provided to anyone other than the employer (or the employer’s agent), a governmental authority, or a self-regulatory organization with regulatory authority over the employer. Employees will have a right to notice if the employer takes adverse action based on communications resulting from an investigation. They also have the right to a summary of the nature and substance of the communications.
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Return to “FCRA Statute And Amendments: 15 U.S.C. 1681, et. seq.”