CIPP-US · Question #100
SCENARIO Please use the following to answer the next question: Felicia has spent much of her adult life overseas, and has just recently returned to the U.S. to help her friend Celeste open a jewelry s
The correct answer is A. Consent requirements.. Celeste has a misconception regarding the consent requirements for conducting credit checks of potential employees in California. She thinks that verbal consent from the applicants is sufficient, and that they only need to be offered access to the results. However, under the Cali
Question
SCENARIO Please use the following to answer the next question:
Felicia has spent much of her adult life overseas, and has just recently returned to the U.S. to help her friend Celeste open a jewelry store in California. Felicia, despite being excited at the prospect, has a number of security concerns, and has only grudgingly accepted the need to hire other employees. In order to guard against the loss of valuable merchandise, Felicia wants to carefully screen applicants. With their permission, Felicia would like to run credit checks, administer polygraph tests, and scrutinize videos of interviews. She intends to read applicants' postings on social media, ask question NO:s about drug addiction, and solicit character references. Felicia believes that if potential employees are serious about becoming part of a dynamic new business, they will readily agree to these requirements. Felicia is also in favor of strict employee oversight. In addition to protecting the inventory, she wants to prevent mistakes during transactions, which will require video monitoring. She also wants to regularly check the company vehicle's GPS for locations visited by employees. She also believes that employees who use their own devices for work-related purposes should agree to a certain amount of supervision. Given her high standards, Felicia is skeptical about the proposed location of the store. She has been told that many types of background checks are not allowed under California law. Her friend Celeste thinks these worries are unfounded, as long as applicants verbally agree to the checks and are offered access to the results. Nor does Celeste share Felicia's concern about state breach notification laws, which, she claims, would be costly to implement even on a minor scale. Celeste believes that even if the business grows a customer database of a few thousand, it's unlikely that a state agency would hassle an honest business if an accidental security incident were to occur. In any case, Celeste feels that all they need is common sense ?like remembering to tear up sensitive documents before throwing them in the recycling bin. Felicia hopes that she's right, and that all of her concerns will be put to rest next month when their new business consultant (who is also a privacy professional) arrives from North Carolina. Regarding credit checks of potential employees, Celeste has a misconception regarding what?
Options
- AConsent requirements.
- BDisclosure requirements.
- CEmployment-at-will rules.
- DRecords retention policies
How the community answered
(18 responses)- A83% (15)
- B6% (1)
- D11% (2)
Explanation
Celeste has a misconception regarding the consent requirements for conducting credit checks of potential employees in California. She thinks that verbal consent from the applicants is sufficient, and that they only need to be offered access to the results. However, under the California Consumer Credit Reporting Agencies Act (CCRAA), employers who want to obtain a consumer credit report for employment purposes must comply with the following consent and disclosure Before requesting a consumer credit report, the employer must provide the applicant with a clear and conspicuous written disclosure that informs them of the following: The specific purpose for obtaining the report. The source of the report. The applicant's right to obtain a free copy of the report from the source within 60 days. The applicant's right to dispute the accuracy or completeness of any information in the report. The employer must also obtain the applicant's written authorization to obtain the report. If the employer intends to take an adverse action based on the report, such as denying employment, the employer must provide the applicant with a copy of the report and a summary of their rights under the CCRAA before taking the action. After taking the adverse action, the employer must provide the applicant with a notice that includes the following: The name, address, and telephone number of the source of the report. A statement that the source of the report did not make the decision and cannot explain why the decision was made. A statement that the applicant has the right to obtain another free copy of the report from the source within 60 days. A statement that the applicant has the right to dispute the accuracy or completeness of any information in the report. Therefore, Celeste is wrong to assume that verbal consent and optional access to the results are enough to comply with the CCRAA. She should follow the written consent and disclosure requirements to avoid violating the law and potentially facing civil penalties or lawsuits.
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