The Legality of Sharing Background Check Information with Another Company
In today’s business world, background checks on employees and potential hires are commonplace. This practice ensures that companies are not exposing themselves to risk when bringing in new team members. However, questions arise when it comes to sharing this information with another company. Can you legally share background check information with another company? Let’s take a closer look.
The Basics: What is a Background Check?
Before we dive into the legality of sharing background check information, let’s first define what a background check is. A background check is an investigation into an individual’s past. This investigation typically includes checking criminal records, employment history, credit reports, and education history. The purpose of a background check is to ensure that the individual being hired is trustworthy and can handle the tasks required of them.
The Legality of Sharing Background Check Information
In general, sharing background check information with another company is illegal. This is due to the Fair Credit Reporting Act (FCRA), which regulates background checks and protects the privacy of individuals. The FCRA requires that companies obtaining background check information have a “permissible purpose” for doing so. This usually means that the information will be used for employment purposes.
Furthermore, the FCRA requires that companies who share background check information with third parties have a legitimate reason for doing so. If the information is being shared for a purpose other than employment, it is likely illegal.
There are a few situations in which sharing background check information may be legal. For example, if the information is being shared between two companies that are part of the same corporate family, it may be legal. Additionally, if the individual being investigated has given consent for their information to be shared, it could also be legal.
The Risks of Sharing Background Check Information
Even if sharing background check information is legal in a specific situation, there are still risks involved. First and foremost, sharing this information can be a breach of privacy. Individuals have a right to know who has access to their personal information, and sharing it without their consent can be a violation of their privacy rights.
Additionally, if the information being shared is inaccurate, it can lead to legal trouble for both companies involved. Background check companies have a duty to ensure that the information they provide is accurate, and companies should always double-check the information before making any hiring decisions.
Conclusion
In conclusion, sharing background check information with another company is generally illegal. The Fair Credit Reporting Act regulates background checks and requires companies to have a permissible purpose for obtaining and sharing this information. While there are some situations in which sharing background check information may be legal, it is important to always be cautious and ensure that the information being shared is accurate and that all privacy rights are being respected. Companies should always consult with a legal professional before sharing any background check information with another company.
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