Pathway 2

Complying with Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA) governs how employers use third-party background checks in hiring decisions. It requires a clear, transparent process to protect applicants’ rights and ensure fairness.

Key FCRA compliance steps include:

    • Providing written notice (in a standalone document) that a background check will be conducted.
    • Getting written permission from the applicant.
    • Certifying to the background check company that you’ve followed FCRA requirements and won’t discriminate.

If an employer decides not to hire someone based on a background check, they must:

    • Issue a pre-adverse action notice including the report and a summary of rights
    • Give the applicant at least five business days to dispute the findings
    • Send a final notice explaining the decision and providing contact details for the reporting agency

    Employers must also securely dispose of background information and treat it with the same care as other personnel records to avoid legal violations. 

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      The Law and Collateral Consequences:
      Complying with EEOC Regulations

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      Understanding and Combating Collateral Consequences