The Fair Credit Reporting Act (FCRA) was enacted to promote accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies (CRA). Employment background checks are a form of consumer report, so employers that conduct background checks on job applicants or employees must follow the procedures outlined in the FCRA. Failure to comply with the FCRA could result in penalties issued by the Federal Trade Commission (FTC) or civil liability for damages. Employers should confirm whether their location has a state counterpart to the FCRA that requires additional action.
