Employment Purposes

Definition - What does Employment Purposes mean?

Employment purposes is an established criteria used in concert with a consumer report to determine the candidacy of an applicant and/or employee for different scenarios including hiring, promotion, reinstatements, or retention. A consumer report consists of personal documents covering pertinent information such as credit history, criminal records, and/or civil court decisions or judgements. For employment purposes, companies must abide to The Fair Credit Reporting Act (FCRA) regulated by the Federal Trade Commission (FTC) as their benchmark for approval or denial of job placement.

WorkplaceTesting explains Employment Purposes

A consumer report is a thorough background check that requires written permission by an applicant and/or employee prior to, or during, status of employment. Many businesses enlist the services of third party organizations such as a credit bureau and/or consumer agency requesting otherwise classified data for employment purposes. A consumer report provides clear stipulations that reflect company guidelines and standards for the selection process of qualified applicants and/or employees.

However, employers are also obligated to provide applicants and/or current employees written notice of the issuance of a consumer report and the extent of its content. From the outset, both parties agree to the mutual disclosure of private information for employment purposes, avoiding discrimination liabilities. Consumer report findings are released to an employer as a determining factor for individuals seeking career opportunities. Applicants and/or employees can receive a copy of the consumer report coupled with a FCRA summary of rights if a discrepancy exists serving as the basis for employment refusal.

For employment purposes, the consumer report is a general formality used to weigh applicant and/or employee credentials against established company policy.

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