The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq) has a direct bearing on how you can use
pre-employment checks.

                First, you must obtain a signed release before ordering a pre-employment check from a consumer
reporting company.  Then, if you decide to take an adverse action -- e.g., denial of employment or a promotion --
based in whole or part on the report, you must do the following, in this order:

                Step 1.

                Before you take the adverse action, you must give the person a pre-adverse action discosure
                that includes:
                            - A copy of the report, and
                            - A copy of their rights under the FCRA.

                Step 2.

                After you take the adverse action, based even partially on the background check, you must
                notify the individual orally, electronically or in writing that the adverse action was taken.
                This is called an adverse action notice.  (Most experts advise written notification.)  If you
                obtained the information through a consumer reporting agency (CRA), the notice must include:

                - The name, address and phone number of the CRA that furnished the report;
                - A statement that the CRA simply furnished the information and did not make the decision
                  or suggest that any action be taken; and
                - A notice of the person's right to dispute the accuracy or completeness of any information the
                  agency furnished and his or her right to an additional free consumer report from the agency
                  upon request within 60 days.

                If you obtained the information directly from sources such as a public database or court records,
                you must:

                - Tell the person the name and address of the information source; and,
                - Notify the person of his or her right to dispute the accuracy or completeness of any information.

                In either case, you must give the person five business days to challenge and correct the contents
                of the report.