The Fair Credit Reporting Act (FCRA) was amended effective March 31, 2004, by the Fair and Accurate Credit Transactions
Act (FACT Act).
One result of the FACT Act amendment is that employers no longer are required to give disclosure and obtain consent
from alleged offenders prior to engaging a third party to investigate workplace misconduct. Disclosure after the
conclusion of an investigation is required if an employer takes an adverse action based upon the investigation. This
disclosure only needs to contain a summary of the nature and substance of the investigation. This disclosure no longer
needs to identify the individuals involved in the investigation. Note however, the FCRA’s notice requirements still apply
when employers use third parties to conduct routine background investigations on applicants.
Common workplace investigations affected by the FACT Act include: harassment complaints, discrimination complaints,
workplace theft, workplace violence, workplace drug use, workplace policy violations, workplace safety rules violations
and workers’ compensation claims.
Consider calling CI the next time you need assistance with a workplace investigation. We have been monitoring the
FCRA and its amendments since 1998 and continue to do so. CI can assist you with such investigations in a timely,
thorough and compliant manner.
DATE: May 2004 - Rules Change Regarding Workplace Investigations