What Employers Must Know About The Fair Credit Reporting Act

When conducting background checks, businesses must obey federal and state regulations. These include federal laws like the Fair Credit Reporting Act (FCRA), as well as local ordinances. We take care to ensure all of our reports and your company is well within the regulations and safe from costly lawsuits.

Located in California, known for its strict employment laws, C3 Intelligence stays ahead in FCRA and state compliance. We remain vigilant when it comes to FCRA compliance to keep your company safe from costly lawsuits.

Every employer must take the time to review and understand the complicated requirements of the federal Fair Credit Reporting Act (FCRA), 15 U.S.C. §§1681-1681u, et seq. when obtaining consumer reports and/or making employment decisions based on those reports. The FCRA requirements place substantial burdens on employers using consumer reporting agencies to perform credit and background checks of new and current employees.

For employers, the chief benefit of outsourcing candidate background checks is letting professionals handle the bulk of responsibility for adherence to laws and regulations on collecting and reporting confidential information.

Professional organizations, like C3 Intelligence, that perform FCRA-compliant background checks do most of the heavy lifting with respect to federal requirements, but employers still have some obligations under the set of regulations known as the FCRA, or the Fair Credit Reporting Act.

Employer failure to meet FCRA requirements can have costly consequences: Fair Credit Reporting Act violations are expensive to litigate and settle.