Choosing an FCRA Compliant Background Screening Company

Background screenings are among the most decisive factors in the hiring process. There are several key guidelines employers must follow when establishing a background screening process. It is crucial for businesses to understand the legal requirements they must adhere to when screening any applicant. First and foremost, employers must obtain background reports from an FCRA compliant entity. The FCRA, or Fair Credit Reporting Act regulates the collection and usage of consumer information.

The Difference Between A Public Records Provider And A Consumer Reporting Agency 

Public records websites provide information that is collected from a variety of sources, such as magazine subscription cards and voter registration forms. Although they can provide valuable information, these sites are not legally obligated to ensure that they have current or accurate data. These sites all post disclaimers stating that they provide information for reference purposes only. They cannot verify that the data is correct. Information provided by these sites may not legally be used to make hiring decisions.

Consumer reporting agencies are legally bound to provide current and accurate information. They provide authoritative and verified data about an individual’s work history, criminal records, drug testing and other relevant details. This information may be used to make hiring decisions.

Guidelines For Pre-Employment Background Screening

Aside from being notified about a screening, applicants must also be told how they can get a copy of their own background report. If a company refuses to hire an individual based on the results of a background check, then they must follow specific guidelines. First the applicant must receive a copy of their consumer report and a FTC document called "A Summary of Your Rights Under the Fair Credit Reporting Act."

All of these steps are managed by consumer reporting agencies. Companies that choose not to utilize an FCRA compliant business may be subjected to a lawsuit.

Before you screen an applicant, make sure you’re dealing with an FCRA compliant consumer reporting agency. Otherwise you may be subjected to lawsuits based on regulations that were created to protect the privacy of individuals and ensure that applicants are not denied employment due to inaccurate or outdated information.