FCRA: How to comply with background-check rules — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

FCRA: How to comply with background-check rules

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in Employment Background Check,Firing,Hiring,Human Resources

THE LAW. The Fair Credit Reporting Act (FCRA) regulates how your company performs background checks on job applicants. Contrary to popular belief, this federal law doesn't just cover credit checks. It covers any background report, such as driving records and criminal histories obtained from a "consumer-reporting agency."

Under the FCRA, you're typically free to conduct background checks and use the information as long as you retain a clear business interest, such as hiring, firing, reassigning or promoting someone.

But you can't run a background check at whim. You must receive written permission before obtaining the report. Then, if you decide to act on it (fire the worker or reject the applicant), you must tell that person in writing that you based the decision, in part, on the background check.

In some cases, background checks are mandated, such as for certain health care workers and security officers, or as a co...(register to read more)

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