An Administrator's Guide to California Private School Law

Chapter 3 – Hiring

2. T HE C ALIFORNIA I NVESTIGATIVE C ONSUMER R EPORTING A GENCIES A CT California’s ICRAA 150 mirrors the federal FCRA in many, but not all, respects. An employer must comply with the ICRAA when it uses an “investigative consumer reporting agency” to prepare an “investigative consumer report” regarding a “consumer.” The ICRAA expressly states that it applies to “any individual, partnership, corporation, limited liability company, trust, estate, cooperative, government or governmental subdivision or agency, or other entity.” 151 Therefore, the ICRAA applies to all private and independent schools. LCW Practice Advisor Unlike the FCRA, even if an employer conducts reference checks itself, the employer may still be subject to the requirements of ICRAA. 152 a. School’s Obligations When It Conducts A Reference Check In-House. The ICRAA imposes the most stringent requirements on employers that utilize the services of consumer reporting agencies. Schools that wish to avoid the strict requirements should conduct reference checks in-house. However, state law still imposes disclosure obligations on schools that perform background investigations in-house. The ICRAA provides:  An employer must provide to the applicant a copy of any public record which is obtained for employment purposes within seven days after receipt of the information, whether the information is oral or written, unless the applicant elects not to receive the public records. 153  Under the ICRAA, public records mean records that document an arrest, indictment, conviction, civil judicial action, tax lien, or outstanding judgment. 154  Even if the applicant has elected not to receive any information, if the school takes any adverse action as a result of receiving the public records, the school shall provide a copy of the public record to the consumer. 155  Under the ICRAA, an adverse action means a denial of employment or any decision made for an employment purpose that adversely affects any current or prospective employee. 156  The school must provide, on the job application or other written form, a box that, if checked by the applicant , permits the consumer to waive his or her right to receive a copy of any public record obtained pursuant to this section. 157 b. The ICRAA Applies When A School Uses An Investigative Consumer Reporting Agency To Obtain An Investigative Consumer Report About A Job Applicant An “investigative consumer reporting agency” is defined as “any person who for, monetary fees or dues, engages in whole or in part in the practice of collecting, assembling, evaluating, compiling, reporting, transmitting, transferring, or communicating information concerning consumers for the purposes of furnishing investigative consumer reports to third parties, but does

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