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Background Check Guidelines: How to comply with the Fair Credit Reporting Act and avoid lawsuits

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in Career Management,Employment Background Check,Firing,Hiring,HR Management,Human Resources,Leaders & Managers,Management Training,Workplace Communication

Employers and HR professionals should make it their policy never to hire a candidate without a comprehensive background check. But, they also must comply with the Fair Credit Reporting Act (FCRA), which regulates how employers perform employment background checks on job applicants.

Contrary to popular belief, this federal law doesn’t cover just credit checks. It covers any background report, such as driving records and criminal records obtained from a “consumer reporting agency” (CRA).

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

But you can’t run a job background check on a whim. You must receive the person’s written permission before obtaining the report. Then, if you decide to act on it (for example, fire a worker or reject an applicant), you must tell that p...(register to read more)

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