The Fair Credit Reporting Act of 1970 (FCRA) defines the scope and limitations of background checks for job candidates. It is important for employers to comply with the regulations postulated in the FCRA. In addition, state laws may impose additional restrictions and/or requirements on employers reporting agencies.
Provisions of the FCRA
Some provisions of the FCRA with regards to employment include the following:
- The job candidate in question must be notified of the employer’s intent to perform a background check in writing, and give his or her consent to the background check in writing.
- If the employer decides not to hire, then the employer is required to notify the candidate by means of a “pre-adverse action disclosure”. Also, a copy of the report and a copy of the candidate’s rights.
- The employer must also let the candidate know the name and address of the Consumer Reporting Agency. Also, provide direction on how the candidate can proceed if he desires to dispute the content of the report.
- A person has the right to obtain all records and/or reports in his or her name.
It is important that employers and 3rd party reporting agencies comply with the FCRA to avoid litigation and privacy violations.
Background Checks are Important
Background checks are important factors in the employment process. According to HireRight, “72% [of employers] said background screening uncovered issues they would not have otherwise found.” The key role of background checks in hiring suitable individuals for open positions underlines the crucial importance of conducting such background checks in a legal and efficient manner.
Learn More About FCRA-Compliant Background Checks
If you are an employer that requires the service of a reputable 3rd party reporting agency for pre-employment background checks, contact us at TruDiligencetoday for more information on how we can provide fast, accurate, and compliant service for your company.