Employment background checks involve sensitive information that may include Social Security numbers, criminal records, work history, driving records, and sometimes credit history.
A federal law called the Fair Credit Reporting Act is designed to protect this information by laying out rules for employers and the consumer reporting agencies (like GoodHire) that produce the background checks. That’s why you’ll often see the phrase “FCRA compliance” in materials from background check companies.
FCRA compliance simply means following the requirements set out by the FCRA. These rules are designed to promote accuracy, fairness, and privacy.
GoodHire background checks are FCRA compliant; unfortunately, not all background checks are. When an employer’s or a background check company’s practices don’t comply with FCRA regulations, they may face lawsuits and penalties.
What The FCRA Means To You
You have rights under the FCRA, and the document A Summary of Your Rights clearly lays them out.
If an employer decides to run a background check on you through a consumer reporting agency, the FCRA states that the employer must:
All these steps must happen before the employer makes a final decision.
If the employer still decides not to hire you after following all these steps – and allowing time for the consumer reporting agency to reinvestigate, if you filed a dispute – they must send you a final adverse action notice in writing.
What Else To Know About The FCRA
The FCRA applies to other kinds of consumer reports in addition to employment background checks. If the information in a background check or credit report is used to deny you access to credit, insurance, or employment, the FCRA gives you these rights:
To learn more, read A Summary of Your Rights Under the Fair Credit Reporting Act.
Disclaimer: The resources provided here are for educational purposes only and do not constitute legal advice. If you have questions regarding your background check or a particular record we advise you consult legal counsel.