FCRA Compliance: Background Screenings Have Rules

Man holding a book with FCRA on the cover.

Conducting a background screening is something that prospective employers can do. However, there are rules that they must abide by. One of the sets of rules that they have to stick to is the Fair Credit Reporting Act (FCRA). It is necessary to remain within the guidelines of this law, and some companies have run afoul of these rules.

Who Does the FCRA Protect? 

It is necessary to have the FCRA in place to help protect job applicants. The reality is that job applicants turn over a significant amount of personal information to a prospective employer when they apply for a job. However, certain elements of one’s personal and private life shouldn’t be exposed to the whims of what a prospective employer might want to check up on. That’s why everyone should be aware that the FCRA exists to help protect them. Also, to keep their information safe and secure.

Panera Bread, Whole Foods, and Others Run Into Legal Compliance Issues

Major companies such as Panera Bread and Whole Foods have run into legal compliance issues related to the FCRA. Those who have lodged lawsuits against them claim that these companies have improperly run credit reports for less than reasonable purposes.

It is a major component of the FCRA that the companies that wish to run a credit report on an applicant have a legitimate reason to do so. They can sue a company if the company decides to pull an applicant’s credit report without valid reasons.

All companies should hire background check companies that know the rules related to the FCRA. Also, someone who can guide them through the process. If you need that kind of assistance, please reach out and contact us for more details.

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