About FCRA

What to Know About FCRA Compliance

The Fair Credit Report Act (FCRA) was introduced by the Federal Trade Commission (FTC) to regulate how online background checks are conducted. Sometimes referred to as a consumer report, background checks may include criminal, driving, educational, credit and identity verification reports.

Before You Order a Background Screening Check

Prior to requesting a consumer report, or background screening check, an employer must certify the following:

1.
The company is using the report strictly for employment purposes, such as to help assess whether to hire a job applicant or promote an existing employee
2.
The company cannot violate any federal or state equal employment opportunity law
3.
The employer must provide a clear disclosure to the applicant or employee and obtain the applicant’s consent before ordering a consumer report
4.
If the employee background check results in adverse action taken against the applicant, the employer must give the applicant an appropriate notice
5.
Employers who have selected an investigative report that includes personal interviews must disclose to applicants their right to a description of the investigation

Selecting the Right Reporting Agency

Once an employer has fulfilled the requirements above, the next step is to select a consumer reporting agency such as www.agoodemployee.com that is FCRA compliant. It is crucial to select the right consumer reporting agency that can provide a comprehensive report that will give you peace of mind when making a hiring decision. Keep in mind certain background check reports may require more time than others, however, most services listed in A Good Employee’s packages can be obtained instantly.

How to Use the Report

A Good Employee provides extremely clear and easy to understand online background checks that will help you make an informed decision. Be sure to never make hiring decisions based on race, sex, religion, disability, or any other characteristics defined by the Equal Employment Opportunity Commission (EEOC).

  • Pre-Adverse Action: if the report leads you to not hire an applicant, you must first provide the copy of the background screening report and a copy of “A Summary of Your Rights Under the Fair Credit Reporting Act”. This gives the applicant an opportunity to explain any discrepancies or negative data. Once this is complete, the employer must notify the applicant of the reason they were rejected and provide the name of the consumer reporting agency used.
  • Adverse Action: If the report comes back clear, congratulations! You’ve found yourself a good employee!

Contact us today to order a report that fits your needs or order a background report package!

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