Articles > Background checks part 2: The Fair Credit Reporting Act

Background checks part 2: The Fair Credit Reporting Act

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This article originally appeared in the August 15-16, 2006 edition of Boca Raton News, www.bocanews.com. Reprinted with permission.

Before requiring criminal background, credit history, and driver's license checks as part of the hiring process, employers must be aware of and comply with the federal Fair Credit Reporting Act (FCRA), which places limits on the use of background checks and creates rights for employees and others subject to the checks. Although the statute's name suggests that it governs credit reports, the FCRA covers what is defined as a "consumer report." In their weekly Boca Raton News column, Hodgson Russ partners Larry Corman and Glenn Rissman discuss steps employers can take to reduce the likelihood of being held liable for misuse of consumer reports during the hiring process.