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What are the rules on background checks on prospective employees?
Reference checks are often met with name, rank and serial number, and many employers contract out background/reference checks on applicants to investigative services. This process is full of legal pitfalls for the unwary. For example, outsourced background checks are covered by the Federal Fair Credit Reporting Act. Employers must have applicants execute an advance, written authorization before a check is performed, and follow federal guidelines (including notice to the applicant) before denying employment. You have to be careful and know the rules.
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