How to Dispose of Background Check Information

Author: Steven J. Luckner and Jennifer Woodruff, Ogletree Deakins

The Fair and Accurate Credit Transaction Act (FACTA) calls for proper disposal of information in a consumer report/background check. Known as the Disposal Rule (the Rule), it requires disposal practices that are reasonable and appropriate to prevent the unauthorized access to or use of information contained in a background check. The Federal Trade Commission (FTC) enforces this rule.

Although not legally required, an employer is encouraged to implement a policy and procedure for the proper destruction of background check information, and ensure that all employees with access to background check information are aware and trained on the legal disposal requirements The IT and security teams within an organization will typically manage and implement these policies and procedures.

This How To will help an employer understand its legal obligations for properly disposing of background check information that it is collecting and maintaining in hard copy files or in an internal online system (e.g., onboarding system).