A federal law governing how employers can use consumer reports in hiring and employment decisions.
The FCRA governs how employers can use third-party background reports — criminal history, credit reports, driving records. Requirements: disclosure of intent to obtain a report (separate document, not within the application), written authorization from the applicant, pre-adverse action notice with a copy of the report and a summary of rights before taking adverse action.
FCRA violations are common in DIY background check workflows; PEO-integrated background checks typically maintain FCRA compliance automatically.
A federal law governing how employers can use consumer reports in hiring and employment decisions.
The FCRA governs how employers can use third-party background reports — criminal history, credit reports, driving records.
Most PEO buying decisions touch several related concepts at once. Fair Credit Reporting Act (FCRA) typically comes up alongside the other terms in this category. Closely related terms include Background check, Onboarding.
This is one entry from our PEO glossary covering payroll, benefits, workers comp, HR compliance, and PEO mechanics. Browse all terms.
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