The Fair Credit Reporting Act (“FCRA”) provides federally-imposed limitations on all employers who seek information from a Consumer Reporting Agency about an applicant or employee for use in making an employment decision, such as a hiring or promotion. The FCRA contains specific notice, authorization, and reporting requirements related to obtaining a Consumer Report, including credit reports and criminal background checks, and potentially taking an adverse employment action based on that information.
Requirements before you request a Consumer Report:
Requirements before you take an adverse employment action based on a Consumer Report:
After you take an adverse action based on a Consumer Report:
Employers should also be aware of state and local restrictions that impact employer background checks, which may include greater protections for the applicant or employee, as well as “ban-the-box”-type requirements that impact when and how the employer can request information related to an applicant’s criminal background.