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Employment background checks and the Fair Credit Reporting Act

On Behalf of | Feb 26, 2025 | Firm News

Background checks are an important part of the hiring process at many businesses. Companies can screen out dangerous workers who have violent criminal records. They can validate claims that an applicant has a degree that is relevant to the available position.

Background checks help ensure that someone is who they claim to be and that they have the necessary education and experience to do a job well. They can even help verify a worker’s fiscal responsibility by providing insight into their financial behavior. Checking credit reports in addition to criminal records and employment history is common.

Companies generally have the right to conduct background checks as a method of screening job applicants. However, the Fair Credit Reporting Act (FCRA) extends numerous protections to employees and applicants hoping to secure positions. What rights do employees have when employers want to conduct background checks?

The right to know ahead of time

Under the FCRA, employers generally have to disclose their intent to conduct a background search before doing so. In fact, it is standard practice to notify workers in writing and secure their signatures affirming their consent before performing a criminal background check or obtaining credit information about an applicant. The company should also provide information about the FCRA to the applicant.

The right to see the report

When an employer makes the decision about a worker’s application based on financial or criminal background information, the worker has a right to know what information influenced the final decision. Typically, employees have a right to request a copy of the report received by the business. They also theoretically have a right to request copies of records directly from the companies providing background check services. That way, they can identify and correct any inaccurate records.

The right to correct inaccurate information

Workers can correct the information maintained by the credit bureaus and third-party businesses offering background check services. In some cases, those looking to advance their careers may need help addressing and correcting inaccurate information that may limit their opportunities. Learning more about the FCRA can help professionals make use of the protections in place for their benefit. Workers seeking new positions or promotions may need help understanding and using their rights to ensure a fair hiring process.

In cases where employers violate worker rights, taking legal action may become necessary. Frustrated applicants can work to hold businesses accountable for breaking the law and can influence changes that benefit other professionals in the future.