FCRA Compliance in Background Checks

The FCRA or Federal Fair Credit Reporting Act is designed to protect everyday people by promoting fairness and accuracy in the files that are collected by background checks and the companies that run them. It is intended to ensure privacy for these people, so that only the relevant information is gathered, and isn’t shared with anyone who should not have access to that information. FCRA compliant background checks work hard to make sure that they are following the guidelines of the FCRA so as not to infringe on anyone’s rights. It is also important for employers to know what they are doing before they run background checks in order to ensure FCRA compliance in their process. Here are some things they need to know.

Appropriate Purpose

Companies can only run background check for certain purposes, so it is important to know what these are and whether your checks are FCRA compliant. Most of these purposes fall under the blanket term employment. Checks made for new hires are always FCRA compliant background checks, as well as promotions, transfers, and even volunteers. However, personal reasons aren’t appropriate when running background checks.

Notification

Applicants must be informed of the possibility of a check for them to be FCRA compliant background checks. This disclosure can’t be grouped up or hidden with any other paperwork except for the following requirement which is Authorization. It is important for applicants to be aware of the background checks that are being run on them. This goes hand in hand with the privacy requirements that the FCRA was created to ensure. The information belongs partly to the applicant, so they must be informed before the check is started of the possibility of the check.

Authorization

FCRA compliant background checks must have written permission from the subject of the background check before they can be requested from a background check company or business. An employer must have this written consent, and it should say when the background check will be run. For example, most will mention that a background check can be run immediately and throughout the term of employment.

Certifications

The companies that run background checks will ask for certification of all of these requirements before running their checks in order to ensure FCRA compliance. You as the employer certify to these companies that the subject of the check has been notified and you will likely need to provide proof of the written consent. They will also have you certify that you will not use this information in a way that violates any state or federal laws, specifically the actions you must take if you decide not to hire based on the information that you will receive. You will have to notify the applicant of the decision, they information that prompted it, and put them in contact with the screening agency so they may contest any inaccurate information.

Importance

It is of vital importance that any employers comply with FCRA regulations. It is pretty easy, and honestly it is federal law, which in itself is a good reason to follow through. Hopefully this information was helpful to you in complying with the FCRA.

Accuratebac is a write and an avid reader. When he's not writing about business, marketing, health, pets, or relationships, he's immersed in his latest book.