There is bad news and good news about the FCRA. The bad news is that the FCRA is a very complex and convoluted law that makes little sense if an employer sits down and tries to read it. Anyone wanting to read the law can go to the website for the Federal Trade Commission (FTC), the federal agency charged with administering the law.
The good news is that there are only four basic steps an employer needs to know about the FCRA in order to begin an Safe Hiring Program while using an employment screening firm. These steps are explained in detail in Complying with the Fair Credit Reporting Act (FCRA) in Four Easy Steps©.
Here is an important fact: the FCRA kicks in when a pre-employment background pre-screening is conducted by the CRA. Therefore, if an employer works with a professional pre-employment background firm, the employer should select the firm based in part upon the background firm’s knowledge of the FCRA. A competent background firm should know how to fully comply with legal requirements of the FCRA, including preparation of all documents and forms needed for a fully compliant screening program.
Employers risk legal liability if the procedures utilized to check on applicants infringe on legally protected areas of privacy. By following the FCRA, an applicant's privacy rights are protected. For this reason, many legal experts advise employers to engage the services of an outside screening firm.
When engaging the services of a CRA, both the employer and the CRA must understand how critical it is to follow the FCRA. Failure to do so can result in substantial legal exposures, including fines, damages, punitive damages, and attorneys fees. Below is a brief summary of the substantial penalties involved for NOT following the FCRA.
© excerpt from The Safe Hiring Audit book.
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