5 Steps to Ensure Compliance with the FCRA for Staffing

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In a nutshell, Fair Credit Reporting Act (FCRA) guidelines can be summarized into 5 simple steps:

1. Employer certification to the Fair Credit Reporting Act (FCRA)
2. Disclosure to and authorization from the applicant
3. Pre-adverse action Notice
4. Adverse Action Notice
5. Document Protection and Destruction

The Staffing Industry Must Certify Certain Items to the Screening Company

Background checks have now become a critical part of the hiring decision making process. When making decisions like hiring, promotion, retention and reassignment, it is now customary for employers to order background checks. The common checks include employment history, education verification, criminal records, financial history and even social media usage.

In most cases, companies contract third-parties (other companies which offer background checking services) to carry out the checks on their behalf. The information gathered from the checks often plays a critical role in influencing hiring decisions.

There are strict legal guidelines which govern how background screening may be carried out. Such guidelines govern what kind of information can be collected, the procedures for collecting the information, and how the information may or may not be used. If you intend to carry out background checks, you need to understand these legal guidelines.

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