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FCRA and Background Checks: Common Employer Questions and Best Practices

December 7, 2021

Via: HR Hero

When considering a job applicant, you’ll likely want to investigate the person’s work history, education, criminal record, financial past, and medical information. The Federal Trade Commission (FTC) regulates such background checks (or “consumer reports”) through the Fair Credit Reporting Act (FCRA), a lengthy, complex set of laws that can be quite daunting to employers. Here are some common FCRA issues and best practices.

Notice to Applicant, Consent to Obtain Information

You must complete three steps before obtaining an applicant’s consumer report. First, let the individual know you may use the consumer report for employment-related decisions. The notice must be in writing in a standalone document (i.e., a separate written disclosure rather than buried in an employment application) with clear and visible language.

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