FCRA Basics for New Attorneys: Employment Background Checks, Compliant Policies, Penalties

This CLE webinar will provide an overview of the Fair Credit Reporting Act's (FCRA) requirements for employers when conducting background checks on employees and/or applicants. The panel will discuss when employers must comply with the FCRA, what types of reports or investigations are covered, and employer notice requirements. The panel will also address potential penalties facing employers for noncompliance and provide best practices for developing FCRA-compliant policies.

The FCRA governs how employers obtain and use consumer reports including those used for standard employment background checks such as credit reports, criminal history reports, and driving records. The FCRA applies when employers use a third party to conduct investigations and has stringent requirements for employers to follow or risk severe penalties.

The FCRA requires employers to disclose to employees and applicants that consumer reports may be used for employment decisions and obtain employee and applicant consent. If the consumer reports provide information that could result in an adverse employment action, employers are required to take additional steps including providing the employee or applicant with notice that includes a copy of the consumer report that was relied on to make the decision and a copy of their FCRA rights.

Listen as our expert panel provides an overview of FCRA requirements for employers when conducting background checks and offers best practices for helping employers create FCRA-compliant policies to mitigate the risk of enforcement action.