FCRA Compliance

If you’re an employer conducting background checks as part of the onboarding process, compliance should be top of mind. Regulatory compliance is a part of every industry, and Check2Hire makes that burden easier through our product and technology.

About the Fair Credit Reporting Act or the “FCRA”

If you are unfamiliar with the FCRA, you should be aware of the law as an employer. The Fair Credit Reporting Act (or “FCRA”) was enacted to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies.

Conditions exist for furnishing and using consumer reports for employment purposes. Those conditions include the following:

  • Employers must comply with Federal and State equal employment opportunity law or regulation and…
  • The CRA must provide a summary of the consumer’s rights under FCRA
  • A clear and conspicuous disclosure has been made in writing to the consumer at any time before the report is procured or caused to be procured and
  • The consumer has authorized and consented orally, in writing or electronically

Employers also need to be mindful of how they use consumer reports for employment purposes. If you see something on the report that doesn’t meet your hiring standards, employers must provide a copy of the report and a description in writing of the rights of the consumer under FCRA before taking adverse action, such as not hiring or terminating the employee.

Sounds scary, right? Check2Hire has you covered!

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