Employers who use pre-employment and post-hire background checks must consider various federal, state and local laws and regulations. One important law that must be considered is the federal Fair Credit Reporting Act (FCRA). The FCRA governs the collection, assembly, and use of certain consumer information. The FCRA provides specific rules for businesses making employment decisions based on consumer reports (for example, driving records, a criminal report, employment history, credit check) obtained from third parties. Surveys have shown that almost all employers are now using some form of background checks that likely implicate the FCRA.
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