Various federal and state laws govern how employers acquire and use applicants' and employees' background information. What four steps are necessary in order for an employer to be in compliance with these laws?

What will be an ideal response?

Answer: The four steps are 1) disclosure and authorization; 2) certification; 3) provision of report copies; and 4) notice after adverse action. In the first step, employers must disclose to the applicant or employee that a report will be requested and that copies may be provided to the employee/applicant, and the employer must obtain the employee/applicant's written authorization. In the second step, the employer must certify to the reporting agency that the employer will comply with the federal and state legal requirements. In the third step, the employer must provide copies of the report to the applicant/employee if adverse action such as withdrawing an offer or dismissing the employee is contemplated. After the employer provides the employee or applicant with copies of the consumer and investigative reports and a "reasonable period" has elapsed, the employer may take adverse action. If so, the employee or applicant must receive an adverse action notice.