Sample Disclosure Statement When Checking the Credit of Prospective Employees

Explanation:

In some cases, you may want to investigate a potential employee's credit history. If the position you are trying to fill involves handling cash or otherwise managing your business's assets, a credit check is essential. Inability to manage personal credit and finances doesn't mean that an individual will have similar difficulties in a business setting. However, it is objective evidence of how the prospective employee has managed his or her assets.

Every prospective employee whose credit history is to be explored should be informed that such an examination is to take place. This document contains language regarding disclosures that employers are legally required to make if there is to be an inquiry into a potential employee's credit records. This language should be incorporated into the materials presented to prospective employees if credit history is a factor that you will consider in making your hiring decision.

Fair Credit Act Disclosure Notice

This is to inform you that, as part of our procedure for processing your employment application, 

[or] 

In making this application for employment,  

it is understood that an investigation of your credit history may be made, whereby information is obtained through personal contact with individuals with whom you are acquainted. Inquiries will include checking records that can include information as to your character, general reputation, personal characteristics and mode of living. You have the right to make a written request within a reasonable period of time to receive additional, detailed information about the nature and scope of this investigation. 

Reprinted with permission. © CCH