{"id":17587,"date":"2023-08-24T15:04:00","date_gmt":"2023-08-24T15:04:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=17587"},"modified":"2023-09-30T23:13:27","modified_gmt":"2023-09-30T23:13:27","slug":"fcra-compliance","status":"publish","type":"post","link":"https:\/\/businessyield.com\/business-coaching\/fcra-compliance\/","title":{"rendered":"FCRA COMPLIANCE: Why Employers Should be Compliant (+ Quick Tips)","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
What is FCRA Compliance? Well for starters, the \u201cFair Credit Reporting Act\u201d is the alternative for the abbreviation, \u201cFCRA.\u201d This federal act came into law in 1970 with the aim of assisting customers in resolving inaccuracies in their credit reports. The FCRA’s scope was modified in 1996 to include other customer studies, such as history reports prepared for job screening purposes. In other words, any employer who uses a third party to conduct background checks must be FCRA Compliant. Soon, we’ll find out why it is important to be FCRA Compliant.<\/p>
Basically, consumers are covered by FCRA enforcement. Employers that use background reports and the Consumer Reporting Agencies (CRAs) (also known as background screening companies) that provide the information are all regulated by the FCRA.<\/p>
When an employer obtains a background check from a third party for job purposes, the FCRA applies. Also, criminal histories, work and education verifications, motor vehicle records, health care sanctions, and professional licenses may also be included in these reports. Furthermore, it’s worth noting that, although the word “credit” appears in the law’s name, it refers to all history records, whether or not they contain credit details.<\/p>
Both the employer and the background screening firm are responsible for complying with the FCRA.<\/p>
However, employers must inform employees that they will be conducting a background check and obtain written consent. If they make an employment decision based on negative details in the study, they must also follow strict adverse action procedures.<\/p>
From the CRA’s perspective, compliance entails getting processes in place to ensure that records are as reliable as possible when adhering to both state and federal reporting requirements.<\/p>
The FCRA also applies in other cases, such as tenant screening background checks. <\/p>
To comprehend the FCRA, one must be familiar with some of its jargon. The following are some of the most relevant terms:<\/p>
A background report, also known as a “background check.” Only accurate information, such as dates of employment, criminal records, and driving records, is included in a Consumer Report.<\/p>
In contrast to a Consumer Survey, an Investigative Consumer Report contains details gathered through personal interviews. A personal interview, for example, is a discussion of job results. Another form of personal interview is a personal or technical reference search.<\/p>
The individual who is the target of the background check is referred to as the consumer. This may be a job candidate, a current employee, a contractor, a temporary worker, or even an unpaid volunteer in the workplace.<\/p>
The organization that conducts the background check and prepares the background report<\/p>
The person who requests and uses the history report is the user in question. This is usually an employer or a potential employer. An organization, such as a non-profit or a school district, may also be the recipient.<\/p>
The document informs the buyer that he or she might be the target of a background check.<\/p>