Understanding FCRA Compliance for Employment Background Checks

Employers want to conduct a background check when hiring employees to ensure that they employ people of integrity, highly qualified, and experienced. The Fair Credit Reporting Act covers all these aspects. Here is everything you need to know about FCRA compliance.

What Is the Fair Credit Reporting Act?

The Fair Credit Reporting Act is an employment law that consists of various regulations. It was enacted in 1970, aiming to provide accuracy and fairness when hiring employees. It gives employers access to potential employee’s private data to get more insight and make informed decisions.

What Is FCRA Compliance?

FCRA compliance is the process of ensuring that each employer adheres to various requirements during employment screening. Each employer must be fair, accurate, and transparent during the screening. The employee must receive a notification from the potential employer about the need to conduct a background check. Further, the message should be in writing and with the consent and acknowledgment of the potential employee.

Types of Background Checks

The potential employer is expected to conduct various background checks on the potential employee, including the following.

• Education background and history
• Criminal history
• Drug tests
• Social security checks
• Employment verification
• Driving history
• Lastly, professional references

The employer uses the acquired information to determine the candidate’s eligibility. After the verification and checks, the employer determines whether the potential employee meets the needs and expectations of the organization.

How Employers Violate FCRA Rules

As an employer, you need to get familiar with the FCRA regulations to avoid violating the terms. Avoid common mistakes such as not informing the candidate about your intention to conduct a background check, not sharing a summary, and not getting written consent from the candidate about performing a background check. It is best to adhere to all the regulations to be on the safe side with FCRA compliance.

Learn More About FCRA Compliance

By adhering to the FCRA regulations, you can be sure of a smooth process when screening employees. Determine a clear guideline to help you meet your company’s needs and expectations when conducting an employee background screening. Get in touch with us and we will take you through the FCRA to make informed decisions.