Joynd and Verified Credentials: A Bridge to Streamlined Hiring
Verified Credentials is committed to providing the best solutions available on the market to make hiring easier without sacrificing results....
1 min read
HR leaders have to stay in front of a lot of regulatory concerns. Maintaining compliance with the Fair Credit Reporting Act (FCRA) with background checks is undoubtedly one of them.
FCRA in the beginning
According to the Federal Trade Commission (FTC), the FCRA was enacted in 1970 to regulate the practices of consumer reporting agencies (“CRAs”) that collect and compile consumer reports for use by certain third parties, including employers.
The FCRA has seen amendments since its inception, but the intention remains the same – to keep the use of consumer information fair and allow space for consumer privacy. The Electronic Privacy Information Center states the Act does this through “…rights of data quality (right to access and correct), data security, use limitations, requirements for data destruction, notice, user participation (consent), and accountability.” For employers, the FCRA has created specific requirements that must be maintained.
Staying in compliance
The requirements imposed on employers that procure background reports are muddled with gray areas. Compounding the confusion is the fact that the FCRA can be supplemented by state and local laws. These laws can be amended, and they are subject to reinterpretation. For example, we’ve written about the unclear direction the Federal Trade Commission gave on what employers shouldn’t include in disclosure documents. Additionally, we have also discussed a Ninth Circuit court decision addressing the same disclosure requirements.
Because of the changing nature of the FCRA, as well as state and local laws and regulations, the best way to stay compliant is to regularly consult your legal counsel. We’ve also compiled a short checklist with a few basic requirements to help you think about obligations under the FCRA
If you want to learn more about what Verified Credentials’ FCRA-compliant background checks are all about, schedule a consultation today.
Verified Credentials Earns Top Spot in HRO Today Baker’s Dozen for Third Consecutive Year
We are proud to announce that Verified Credentials has been recognized in the 2024 HRO Today Baker’s Dozen Customer Satisfaction Ratings as a top...
Employment Background Checks after Hire: Why Rescreening Matters
Most HR managers are starting to think about planning for the new year. Setting goals, enhancing retention, and revisiting costs usually make the new...
Benchmark Report: HR Spotlight on Compliance & Employment Law
Compliance is one of the top human resource issues employers need help to grasp. It’s also one of the most crucial areas for HR to understand. ...
2020 So Far: What’s Been Happening in Background Screening Compliance?
A lot has changed in the world since we started 2020. As we round out the first half of the year, we are looking back on changes we have seen in the...
Keep It Simple: An FTC Guide to Disclosure and Authorization Forms
The requirements and obligations of the Fair Credit Reporting Act (FCRA) can be challenging to navigate, even for the most seasoned employer. Any...