The Fair Credit Reporting Act (FCRA) does far more than regulate the exchange of consumer credit information. You need to understand how it applies to employees and applicants in order to ensure compliance. Below is a general summary of your FCRA obligations.
‘Consumer Reports’ and ‘Investigative Consumer Reports’
In the employment context, a consumer report is any written, oral, or other communication of any information by a consumer reporting agency bearing on an individual’s employment. This usually includes any information about an employee or applicant gathered from third parties. Generally, when you use a third-party vendor to run background checks of any kind, the FCRA will apply.
