FCRA Compliance

At Investigative Screening Solutions we take compliance very seriously. We are trained and certified in the Fair Credit Reporting Act. The Fair Credit Reporting Act (FCRA) is a federal law that regulates how consumer reporting agencies use information. Here are some of the basics that employers should be aware of when conducting background screening:

FCRA Compliance Basics in 5 Steps

1. Permissible Purpose - Ensure you are only ordering background checks for employment purposes. "Employment" is a broad category that includes hiring, retention, promotion, transfers, and can include volunteers, contractors, etc. In the case of a Medical Staff Services department, for example, this can include appointment or reappointment of physicians.

2. Disclosure - In a written document, inform the consumer that a background check may be obtained as a condition of employment. The disclosure can't be combined with any other form except the authorization.

3. Authorization - Before ordering a background check, obtain written consent from the individual that a consumer report can be obtained now and throughout the term of employment.

4. Certifications - As the "end user" of consumer reports, you must certify the following to the screening firm:

5. Adverse Action - If adverse information on a report is used by you to make a negative employment decision, you must take the following actions before rescinding an offer of employment or terminating an employee. Remember, taking adverse action involves a two-prong notification process: