Sapphire Check, LLC New Account Agreement
The following agreement is made between (CLIENT) located at (complete address) and SappHire Background Check, LLC, Inc. (SAPPHIRE ) located at 4714 Fort Hamilton Pkwy Brooklyn NY 11219. SAPPHIRE will provide Background screening, Verification, or Drug Screening services for CLIENT.
For the purpose of this agreement “CLIENT” means the company, its employees and authorized representatives entering into this agreement with SAPPHIRE . USER means an individual who works for a client who has been given a login code. “Consumer Report” means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer’s character, general reputation, personal characteristics, mode of living, credit standing, or credit capacity, which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer’s eligibility for employment. “Investigative Consumer Report” means a consumer report or portion thereof in which information on a consumer’s character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he or she is acquainted or who may have knowledge concerning any such items of information. “Employment Purposes” means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee or independent contractor. FCRA means the Fair Credit Reporting Act. The FCRA in its entirety can be found at: http://www.ftc.gov/os/statutes/031224fcra.pdf
SAPPHIRE strives to deliver accurate and timely information products to assist your company in making intelligent decisions for a permissible purpose under applicable law. To this end, SAPPHIRE assembles information from a variety of sources, including information repositories, public records and third-party researchers. CLIENT understands that these information sources and resources are not maintained by SAPPHIRE. As a result, SAPPHIRE cannot be a guarantor that the information provided from these sources is absolutely accurate or current. Nevertheless, SAPPHIRE has in place procedures designed to respond promptly to claims of incorrect or inaccurate information in accordance with applicable laws.
Likewise, through this agreement, CLIENT will certify that it also has in place reasonable procedures designed to comply with all applicable state and federal laws relating to background screening and equal employment opportunity.
Among others, CLIENT will find the following documents located in the Client Document Library:
CLIENT acknowledges that they have read and understand the following documents (Initial).
CLIENT hereby certifies to SAPPHIRE that the information products it receives will not be used in violation of any applicable federal or state equal employment opportunity laws or regulations. CLIENT accepts full responsibility for using the information products it receives from SAPPHIRE in a legally acceptable fashion and for the consequences of use and/or dissemination of those information products (Initial).
CLIENT agrees to put into place reasonable policies and/or procedures to ensure the fair and equitable use of background information and to secure to the extent possible the confidentiality of each individual’s private information. As one aspect of this commitment, CLIENT agrees to take precautionary measures to protect the security and dissemination of background information including but not limited to safeguarding access to such information by restricting access to terminal devices used to obtain such information, utilizing passwords to restrict access to such terminal devices, and securing access to, dissemination and destruction of hard copy reports (Initial).
CLIENT certifies that it will retain any information it receives from SAPPHIRE as well as applicant disclosure and authorization for a period of five years from the date the report was run as required in the Fair Credit Reporting Act (Initial)
4.1 WHEN INFORMATION PRODUCTS ARE USED FOR EMPLOYMENT PURPOSES.
If the information products are to be used for an employment purpose, CLIENT certifies that prior to obtaining or causing a “consumer report” and/or “investigative consumer report” to be obtained for employment purposes, a clear and conspicuous disclosure, in a document consisting solely of the disclosure, will be made in writing to the consumer explaining that a consumer report and/or investigative consumer report may be obtained for employment purposes, and will be presented to the consumer before the report is procured or caused to be procured. This disclosure will satisfy all requirements identified in Section 606(a)(1) of the Fair Credit Reporting Act as well as any applicable state or local laws. The consumer will have authorized, in writing, the obtaining of the report by CLIENT. CLIENT acknowledges that in order to complete some types of background screening searches, SAPPHIRE will require the consumer’s written authorization to be kept on file by SAPPHIRE. SAPPHIRE reserves the right to audit CLIENTs process relating to consumer disclosure and authorization (Initial).
4.2 CONSUMER REPORTS
If the consumer makes a written request within a reasonable amount of time, CLIENT will provide: (1) information about whether a consumer report has been requested; (2) if a consumer report has been requested, written disclosure of the nature and scope of the investigation requested; and (3) the name and address of the outside agency to whom requests for any of these reports has been made. This information will be provided no later than five days after the date on which the request for such disclosure was received from the consumer or such report was first requested, whichever is the latter.
4.3 COMPLIANCE WITH STATE LAWS
CLIENT certifies that it is aware that in addition to federal requirements in the FCRA, states may have their own distinct requirements. CLIENT agrees to keep itself informed of its obligations under both state and federal laws and certifies that it will comply with all requirements under these laws, including the notice and authorization requirements. CLIENT further represents that any reports relating specifically to California residents or regarding transactions occurring in California will be ordered for the permissible purpose of pre-employment screening only (Initial).
CLIENT hereby certifies that Driving Records shall only be ordered in strict compliance with the Driver Privacy Protection Act (“DPPA”, at 18 U.S.C. § 2721 et seq.) and any related state laws. CLIENT further certifies that no Driving Record shall be ordered without first obtaining the written consent of the consumer, evidence of which shall be transmitted to SAPPHIRE in the form of the consumer’s signed release authorization form if requested. CLIENT also certifies that it will use this information only in the normal course of business to obtain lawful information relating to a holder of a commercial driver’s license or to verify information provided by an applicant or an employee.
If the consumer is denied employment, or other adverse employment action taken in whole or in part on the basis of the consumer report, CLIENT will provide to the consumer: (1) a copy of the report; and (2) a description, in writing, of the rights of the consumer entitled: “A Summary of Your Rights Under the Fair Credit Reporting Act.” Attached hereto as Exhibit C. This notice also is available at Consumer Financial Protection Bureau’s website, www.consumerfinance.gov/learnmore.
This agreement, including any exhibits, constitutes the entire agreement between the CLIENT and SAPPHIRE. CLIENT agrees not to resell, sub-license, deliver, display or otherwise distribute to any third party any of the information products addressed herein, except as required by law. CLIENT may not assign or transfer this Agreement without the prior written consent of SAPPHIRE. If any of the provisions of this Agreement become invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions shall not in any way be effected or impaired. This Agreement shall be interpreted in accordance with the laws of the state of New York. All litigation arising out of this Agreement shall be commenced in New York, and the parties hereby consent to such jurisdiction and venue. Any written notice by either party shall be delivered personally by messenger, private mail courier service, or sent by registered or certified mail, return receipt requested, postage prepaid to the addresses listed below. This Agreement shall be construed as if it were jointly prepared. Both parties agree that this Agreement and all incorporations constitute all conditions of service, present and future. Changes to these conditions may be made only by mutual written consent of an authorized representative of a customer and an officer of SAPPHIRE. The headings of each section shall have no effect upon the interpretation of any part of this Agreement.
7.1 ACCURACY OF INFORMATION
CLIENT understands the difference between county, state, federal, and database criminal searches. CLIENT acknowledges that no criminal search can be guaranteed to be 100% accurate.CLIENT acknowledges that SAPPHIRE does not create the records but reports what is found at the data source and CLIENT is responsible for selecting the type of criminal search desired. CLIENT understands that the industry standard for conducting a detailed criminal background check involves searching the county and federal courts where someone has lived during the last 7 years and running a Multi-State Criminal Database search. CLIENT understands and agrees that in order to obtain the maximum possible accuracy, SAPPHIRE will order County Criminal Record Searches on client’s behalf to verify the results of a Multi State Database Search. CLIENT agrees that they will be charged for these additional searches in accordance with the agreed upon price (Initial).
CLIENT and SAPPHIRE must work together to protect the privacy and information of consumers. The following information security measures are designed to reduce unauthorized access to consumer information. It is your responsibility to implement these controls. If you do not understand these requirements or need assistance, it is your responsibility to employ an outside service provider to assist you. SAPPHIRE reserves the right to make changes to Access Security Requirements without notification. The information provided herewith provides minimum baselines for information security. In accessing SAPPHIRE ’S Services, you agree to follow these security requirements:
8.1 IMPLEMENT STRONG ACCESS CONTROL MEASURES
CLIENT understands and agrees that they must implement strong access control measures to protect sensitive information. These measures include:
8.2 MAINTAIN A VULNERABILITY MANAGEMENT PROGRAM
CLIENT understands and agrees that they must implement a vulnerability management program. These measures include:
8.3 Implement and follow current best security practices for computer anti-spyware scanning services and procedures:
CLIENT understands and agrees that they must implement and follow best security practices for computer anit-spyware scanning services and procedures. These measures include:
8.4 PROTECT DATA
CLIENT understands and agrees that they must implement and follow procedures to protect data. These measures include:
8.5. MAINTAIN AN INFORMATION SECURITY POLICY
CLIENT understands and agrees that they must implement and follow a security policy. These measures include:
8.6 Implement and maintain ongoing mandatory security training and awareness sessions for all staff to underscore the importance of security within your organization.
CLIENT understands and agrees that they must implement and provide security training and awareness sessions for all staff to underscore the importance of security within your organization.
8.7 BUILD AND MAINTAIN A SECURE NETWORK
CLIENT understands and agrees that they must build and maintain a secure network. These measures include:
8.8 REGULARLY MONITOR AND TEST NETWORKS
CLIENT understands and agrees that they must perform regular tests on information systems (port scanning, virus scanning, vulnerability scanning).
Use current best practices to protect their telecommunications systems and any computer system or network device(s) used to provide services hereunder to access credit reporting agency systems and networks. These controls should be selected and implemented to reduce the risk of infiltration, hacking, access penetration or exposure to an unauthorized third party by:
8.9 RECORD RETENTION
The Federal Equal Opportunities Act states that a creditor must preserve all written or recorded information connected with an application for 25 months. In keeping with the ECOA, SAPPHIRE requires that you retain the credit application and, if applicable, a purchase agreement for a period of not less than 25 months. When conducting an investigation, particularly following a breach or a consumer complaint that your company impermissibly accessed their credit report, SAPPHIRE will contact CLIENT and request a copy of the original application signed by the consumer or, if applicable, a copy of the sales contract (Initials).
CLIENT understands that “Under Section 621 (a) (2) (A) of the FCRA, any person that violates any of the provisions of the FCRA may be liable for a civil penalty of not more than $2,500 per violation (Initials).”
CLIENT understands that SAPPHIRE is not legal counsel and cannot provide legal advice. CLIENT should work with counsel to develop an employment screening program specific to their needs. It is necessary for CLIENT to work with counsel to ensure that client’s policies and procedures related to the use of SAPPHIRE provided information are in compliance with applicable state and federal laws.
CLIENT acknowledges receipt of all notices required by the FCRA including the Notice to users of Consumer Reports, Obligations of Users under the FCRA, A Summary of Your Rights Under the Fair Credit Reporting Act, and Remedying the effects of Identity Theft.
CLIENT agrees to pay fees and other charges which shall be nonrefundable for SAPPHIRE background check services. Fee changes may be adjusted from time to time with prior written notice. If CLIENT is paying their invoice by check, full payment must be made within thirty days of the invoice date. At the option of SAPPHIRE, payments not received thirty days after the date of the invoice may cause the account to be placed on temporary interruption, with no additional requests being processed until the balance due is paid in full or arrangements have been made with our Accounts Receivable Department.
CLIENT further agrees to pay any and all costs and expenditures related thereto, unless arrangements have been made with SAPPHIRE Accounts Receivable Department. If the account goes to collection, CLIENT agrees to pay all collection expenses, including attorneys’ fees and court costs. CLIENT hereby authorizes SAPPHIRE to charge, without prior notice, any credit card of CLIENT for all or any portion of any payment due SAPPHIRE from CLIENT (Initials).
CLIENT understands that SAPPHIRE obtains the information reported in its information products from various third party sources “AS IS”, and therefore is providing the information to CLIENT “AS IS”. SAPPHIRE makes no representation or warranty whatsoever, express or implied, including, but not limited to, implied warranties of merchantability or fitness for particular purpose, and implied warranties arising from the course of dealing or a course of performance with respect to the accuracy, validity, or completeness of any information products and/or consumer reports, that the information products will meet CLIENT’S needs, or will be provided on an uninterrupted basis; SAPPHIRE expressly disclaims any and all such representations and warranties. SAPPHIRE will not be liable for any indirect, incidental, consequential, or special damages for loss of profits, whether incurred as a result of negligence or otherwise, even if SAPPHIRE has been advised of the possibility of such damages. CLIENT understands that SAPPHIRE ‘ data is collected from and processed by sources which may be fallible, and that the compensation granted for said services is not a guarantee of accuracy. As such, CLIENT agrees to indemnify and hold harmless SAPPHIRE, its successors and assigns, officers, directors, employees, agents and suppliers from any and all claims, actions or liabilities arising from or with respect to information products provided by SAPPHIRE. CLIENT shall indemnify, defend and hold harmless SAPPHIRE from and against any and all claims, suits, proceedings, damages, costs, expenses (including, without limitation, reasonable attorneys’ fees and court costs) brought or suffered by any third party arising or resulting from, or otherwise in connection with, any breach by CLIENT of any of its representations, warranties, or agreements in this Agreement or its negligence or willful misconduct. In turn, SAPPHIRE shall indemnify, defend and hold harmless CLIENT from and against any and all claims, suits, proceedings, damages, costs, expenses (including, without limitation, reasonable attorneys’ fees and court costs) brought or suffered by any third party arising or resulting from, or otherwise in connection with, any breach by SAPPHIRE of any of its representations, warranties, or agreements in this Agreement or its negligence or willful misconduct.
SAPPHIRE cannot guarantee CLIENT compliance with all applicable laws in its use of reported information, and makes no effort to provide compliance related services in connection with its furnishing of reports. CLIENT agrees that it will consult with its own legal or other counsel regarding the legality of using or relying on reported information in making employment decisions.
This Section does not mandate exclusivity, minimum usage and/or guaranteed usage. The term of this Agreement shall begin on the date it is executed by CLIENT and will continue until SAPPHIRE or CLIENT request termination in writing. Such notice of intent to terminate must be given no less than thirty days prior to the proposed termination date. SAPPHIRE may terminate or revise the provisions of this Agreement immediately upon written notice if CLIENT is the debtor in a bankruptcy action or in an assignment for the benefit of creditors or in any other position of financial distress, or if CLIENT undergoes a change in ownership.
CLIENT agrees that SAPPHIRE is not responsible for any events or circumstances beyond its control (e.g., including but not limited to war, riots, embargoes, strikes and/or Acts of God) that SappHire from meeting its obligations under this Agreement.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. A signature on a copy of this Agreement received by either party by facsimile is binding upon the other party as an original. The parties shall treat a photocopy of such facsimile as a duplicate original. The individuals signing below represent that they are duly authorized to do so by and on behalf of the party for whom they are signing.
IN WITNESS THEREOF, CLIENT and SAPPHIRE have each caused this Agreement to be executed by their respective duly authorized representatives as of the Effective Date.
Authorized SappHire Background Check Signature
Client Printed Name Authorized SappHire Background Check Printed Name
Company Name SappHire Background Check LLC
Background Check Account Set Up Summary
This document will highlight some of the key items that will be agreed upon in the New Account Agreement, as well as explain the Account Set Up Process. Please contact Sapphire Background Check if you need clarification on any of these points before initialing.
In accordance with the Fair Credit Reporting Act (FCRA), Sapphire Background Check may need to verify your business and you may be asked to provide (1) of the following:
I agree to this provision
In accordance with the FCRA, you must provide the candidate with a written notice that you will be obtaining a consumer report (background check report) on them and you must certify the permissible purpose for this background check. Written authorization must be obtained BEFORE running the background check. Please note that Sapphire Background Check may conduct random audits to ensure you are obtaining proper authorizations.
Provide the candidate with a copy of the Federal Trade Commission (“FTC”) document called “A Summary of Your Rights Under the Fair Credit Reporting Act” at the time that you provide the Background Check Disclosure and Authorization Form.
New York: Employers considering candidates who reside in or will work in New York should provide candidates with a copy of New York Correction Law Article 23-A.
California: Employers considering candidates who reside in or will work in California should provide candidates with a copy of California’s Summary of Rights.
If you are considering denying employment or contract services based in whole or in part on the content of a background check report, in addition to complying with all applicable federal and state laws and regulations, including, but not limited to the EEOC guidance*, the FCRA requires the following:
Pre-adverse action notice:
Send the candidate a pre-adverse action letter notifying him/her that you intend to take adverse action based on the information in his/her background check report;
Include a copy of the background check report with the pre-adverse action letter;
Include the FTC’s “A Summary of Your Rights Under the FCRA” with the pre-adverse action notice (Additional state law summary of rights may be required – please consult with competent counsel to ensure compliance with all applicable state laws); and
Provide the candidate a reasonable period of time to explain the information in the report or to dispute the accuracy of the reported information.
Adverse action notice:
If, after a reasonable period of time, the applicant has not disputed their report, and you still wish to deny employment based on a candidate’s background check results, you must send him/her an adverse action letter.
Again, include a copy of the background check report with the adverse action letter;
Again, include the FTC’s “A Summary of Your Rights Under the FCRA” with the adverse action notice (Additional state law summary of rights may be required – please consult with competent counsel to ensure compliance with all applicable state laws).
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Document Name: Sapphire Check, LLC New Account Agreement
Agree & Sign