ALABAMA BACKROUND SCREENING

Alabama Background screenings are a common part of the hiring process for many employers in Alabama. However, there are a number of laws that govern how employers can use background checks.

Federal Laws

Employers in Alabama are subject to the Fair Credit Reporting Act (FCRA), which is a federal law that regulates the use of consumer reports, including background checks. The FCRA requires employers to:

• Provide applicants with a copy of their credit report before making an adverse decision based on the report.
• Provide applicants with an opportunity to dispute any inaccurate or incomplete information in their credit report.
• Not discriminate against applicants based on their credit report.

State Laws

In addition to the FCRA, employers in Alabama are also subject to the following state laws:

• The Alabama Fair Employment Practices Act (AFPA) prohibits employers from discriminating against applicants based on their race, color, religion, sex, national origin, age, or disability.
• The Alabama Criminal Justice Information Act (ACJIA) allows employers to obtain criminal background checks on applicants. However, the ACJIA prohibits employers from discriminating against applicants based on arrests or convictions that are not relevant to the job.

Employer Obligations

Employers in Alabama have a number of obligations when conducting background checks. These obligations include:

• Obtaining written consent from applicants before conducting a background check.
• Limiting the scope of the background check to information that is relevant to the job.
• Obtaining the background check from a reputable source.
• Providing applicants with a copy of the background check report before making an adverse decision based on the report.
• Not discriminating against applicants based on the information in the background check report.

Applicant Rights

Applicants in Alabama have a number of rights when it comes to background checks. These rights include:

• The right to be informed about the nature and scope of the background check.
• The right to dispute any inaccurate or incomplete information in the background check report.
• The right to be provided with a copy of the background check report before an adverse decision is made.
• The right to not be discriminated against based on the information in the background check report.

The state of Alabama does not have any restrictions on what can be reported in a background screening report beyond what the Fair Credit Reporting Act (FCRA) dictates. The following items cannot be reported by a background screening agency/consumer reporting agency (CRA) on a consumer report or background check EXCEPT, if for employment, these restrictions do not apply to when the annual salary of the applicant for employment may be expected to meet or exceed $75,000 per year.

Civil suits, civil judgments and records of arrest that from the date of entry precede the report by more than 7 years or until the governing statute of limitations have expired, whichever is longer.

Note: Prior to 1998 this provision also restricted the reporting of criminal convictions, however that restriction was eliminated in 1998 – retroactive to 1996, and the FCRA currently allows convictions to be reported without limitation.

Bankruptcies can be reported for only 10 years

Tax liens can be reported for only 7 years

Accounts placed for collection can be reported for only 7 years

Other adverse information can be reported for only 7 years.

Note: General or neutral information such as prior employment or college degrees are not “adverse information” even if the report discloses that the consumer has lied about their education, prior employment, etc.

Ban-The-Box

BIRMINGHAM, AL – PUBLIC SECTOR

Applies only to public sector employers for the City of Birmingham, AL.

Public employers in Birmingham are prohibited from asking about criminal history on job applications.

Adverse action implications: None

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