Employment Background Checks and the Fair Credit Reporting Act

Employment Background Checks and the Fair Credit Reporting Act

An employer might consider the use of a (pre-employment/employment) background check for an applicant before making any hiring choices. A background check is an evaluation of an individual’s different records. Businesses may, indeed, want to obtain information related to a potential employee’s work history, credit checks, education, driving records, criminal background, or social media usage.

Reasons to Conduct Employment Background Checks

Background checks help employers obtain information not provided by prospective hires and can protect the organization from several possible risk factors. Some reasons for conducting these checks include:

  • Provide a safer environment for employees and customers
  • Improve the quality of hires and workplace competence
  • Protect organizational reputation
  • Prevent or reduce theft or other criminal activity
  • Lastly, increase employee integrity and honesty

Employment Background Checks and Federal Law

Any time an employer uses background information to make an employment decision, they must follow federal laws that protect applicants from discrimination. When organizations utilize a third-party company to compile background checks, the information gathered is covered by the Fair Credit Reporting Act.

Fair Credit Reporting Act

Enacted in 1971, the Fair Credit Reporting Act ensures consumer reporting agencies carry out their duties in a fair, impartial, and respectful manner. Regardless of its name, the Fair Credit Reporting Act extends beyond credit data to include character, reputation, and other information. Further, the Federal Trade Commission enforces the Fair Credit Reporting Act and oversees how information is compiled and applied for employment background checks.

Select a Background Check Company

Selecting a background check company is an important decision. Background investigations protect your business. However, employers must also be compliant with the laws related to the process. TruDiligence can, indeed, help support organizations in these efforts.

TruDiligence is an employment background check company that offers professional, courteous, and timely applicant screening services for clients worldwide. Contact us for all employment background check needs.

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