It Takes More Than Just FCRA Compliance

FCRA COMPLIANCE CONTINUES TO GROW

The Fair Credit Reporting Act (FCRA) is the act that regulates the collection of credit information and the access to credit reports. It was passed in 1970 to ensure fairness, accuracy, and privacy of the personal information contained in the files of the credit reporting agencies.

INCREASING EEOC ROLE

The EEOC has increased discrimination claims against employers whose screening policies disproportionately affect a protected group. Hiring policies that disproportionately screen out minorities, including people with criminal records, may automatically be considered in violation.

BAN-THE-BOX LAWS

Each ban the box law prohibits any covered employer from asking about criminal history until after a first interview or conditional offer. However, each state and local law is nuanced as to what can be asked, and when it can be asked.

AUTHORIZATION

Before an employer can ask for reports about you from any companies that provide them, it must tell you that it might use the information to make a decision. This notice is separate from other documents you receive. An employer may not get a report about you for employment purposes without getting your permission or authorization first, usually in writing.

DISCLOSURE

Employers are required to give applicants separate disclosures prior to requesting a consumer report. The applicant must receive a clear and conspicuous written disclosure that informs them that a consumer report may be obtained and that the report may be used in the employment decision. This written document must be separate from the application packet. The employer must also get written authorization from the applicant before obtaining the consumer report.