The Importance of FCRA Compliance for Employment Screening

Hiring manager shaking hands with employee after screening

Maintaining compliance with FCRA standards while pursuing employment screening is essential for employers. If you were to ignore consumer laws, even accidentally, you would open yourself up to a very expensive and time-consuming lawsuit. It’s vital to go through a professional company such as TruDiligence to ensure your employment screening remains in compliance with all applicable laws.

FCRA Basics

The Federal Credit Fair Reporting Act (FCRA) was designed to protect the information collected by consumer reporting agencies. This generally applies to credit bureaus and medical information companies, but it also applies to tenant and employment screening services. Employment screenings are a necessary part of the hiring process and, some would argue, the most important step.  

A consumer report through the FCRA typically provides you with the following details of a person:

  • Credit Health
  • General Reputation
  • Character
  • Mode of Living
  • Personal Characteristics

Companies like TruDiligence ensure you’re receiving the full report needed to make your hiring decisions while remaining in compliance with the FCRA.

How To Stay Compliant When Conducting Employment Screening

There are several things employers must do to remain compliant with FCRA standards. Before you can run a screening, you must inform the potential hire in writing that this screening will be performed and that it may impact hiring decisions. The potential hire will need to give their written permission for a screening to be performed. You can not use the information gathered to discriminate against potential hires or otherwise misuse the information in any way.

Staying in compliance is fairly simple once you familiarize yourself with FCRA guidelines. Using a well-established and trusted company like TruDiligence will ensure your employment screenings are performed efficiently and professionally. 

The Takeaway

Employers have a responsibility to perform employment screenings that are in full compliance with FCRA guidelines. Not doing so can lead to serious trouble for businesses, so finding a nationally accrediting company to work with is essential. Please contact us today to view our accreditations and the services we offer.

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