What Employers Need To Know About FCRA Compliance

fcra, fair credit reporting act, fcra compliance, pre-emloyment background, summary of yur rights,

TABB INC. implemented a proactive approach to FCRA compliance that includes specific processes and procedures to protect the rights of candidates who apply for employment. The links below provide additional information about the candidate’s rights and the employer’s obligations under the FCRA.

TABB INC. has compiled a comprehensive State Rules Registry available to clients from within their account with us. This service is designed to help Human Resources comply with the myriad of ever changing state laws affecting the onboarding process that go beyond the Fair Credit Reporting Act (FCRA). Our goal is to present these restrictions, suggested practices, practical tips, and ongoing notifications in an easy to use format.

If an employer utilizes a third party to conduct pre-employment background investigations, the employer must:

  • Obtain the candidate’s authorization in a format that meets FCRA guidelines.

  • Provide a copy of "A Summary of Your Rights Under the FCRA" to the candidate.

  • Provide the name, address, and telephone number of the company that will conduct the background investigation. This company must provide a copy of the report they create to an applicant upon written request.

  • The employer must provide written or verbal communication to the candidate (Pre-Adverse Action Notice) if the employer intends to deny an employment opportunity, in whole or in part, due to information contained in a background investigation. The employer must provide a copy of the background investigation report to the candidate, and a copy of A summary of Your Rights Under the FCRA with the Pre-Adverse Action Notice.

  • The employer must include in the notice that the candidate has an opportunity to dispute information contained in the background investigation that they believe is inaccurate.

    The FCRA guidelines state that background investigation company must re-investigate information that is disputed by an applicant.

  • If the applicant does not respond to the Pre-Averse Action notice within the prescribed number of days, the employer must send an Adverse Action letter stating that the offer of employment has been rescinded and must include A Summary of Your Rights Under the FCRA, and a copy of the background investigation.

  • A report detailing the actions taken by the background vendor during the re-investigation process must be submitted to the employer and the candidate. Inaccurate information developed during this process must be removed from the background report, and a revised report with the findings must be provided to the employer, and the candidate.

  • A candidate has a right to request the vendor to provide a free copy of the background investigation report whether or not they are denied employment.

  • A number of states have implemented requirements similar to the FCRA that require additional steps. Employers should determine if additional practices must be implemented based the organization's location(s).

  • Employers should periodically audit processes to confirm FCRA compliance with guidance from an attorney. 

FCRA Basics for Employers and FCRA Compliance

This information is provided as a public service regarding FCRA compliance. The FCRA Basics for Employers as a general overview of FCRA guidelines. While the information on this site is about legal issues, it is not legal advice or legal representation. Because of the rapidly changing nature of the law and our reliance upon outside sources, we make no warranty or guarantee of the accuracy or reliability of information contained herein or at other sites to which we link. We assume no responsibility for any information, advice, or services provided by any site to which we link.

For more information about the rights of a job applicant, view the EEOC Guidelines.