FCRA Compliance

FCRA Compliance

When conducting background checks businesses must obey federal and state regulations. We take care to ensure all of our reports and your company is well within the regulations and safe from costly lawsuits.

HireSafe stays ahead in FCRA and state compliance because we are located in California, known for its strict employment laws. We stay vigilant when it comes to FCRA compliance to keep your company safe from costly lawsuits. 

HireSafe adheres to the following guidelines to ensure our background checks are entirely compliant.

HireSafe offers compliance resources to keep you informed

The HireSafe Background Check Blog includes valuable insights on the latest employment screening trends, court cases and news. 

Our Compliance Checklist provides a simple and quick reference for maintaining complaint procedures. 

We have pages of information on the background check process and how HireSafe keeps your company compliant. 

Each Client at HireSafe has a dedicated account manager who can answer compliance questions for your specific company.

Have any compliance questions? call us anytime:

888-792-HIRE (4473) | research@hiresafe.com

FCRA Compliance is built into HireSafe's procedures and work habits

HireSafe’s professional standards define our employment background check practices so that we are always FCRA compliant. These include compliant procedures for making investigative telephone calls, to the design of our proprietary, custom software systems and everything in between.

As a licensed CA Private Investigative Agency (CA PI #25313) we are in the unique position of being one of the very few professionally-trained background screening companies. With 19+ years of experience in employment screening you can trust a HireSafe background check. Here are just a few ways we keep you compliant with FCRA and state regulations. 

  • Our production staff ensures no information prohibited by the Federal Credit Reporting Act (FCRA) such as criminal charges that were dismissed are included in reports.
  • Dual authentication and company login approval via the HireSafe InstaScreen web portal restricts user’s ability to view reports unless you request they receive full access. Having minimal authorized users makes it easy to keep sensitive records confidential.
  • Position specific service packages enable you to ensure that your staff consistently implements your corporate hiring policies.
  • HireSafe also provides paperless Pre Adverse and Final Adverse Action notifications, keeping you compliant no matter what.

FCRA background check reporting limitations

The FCRA regulations place limitations on information that can be reported by a background screening company. To comply with employment law, Credit Reporting Agencies such as HireSafe only provide reports with filtered and compliant data in them.

Section 605 of the FCRA prohibits a background screening company from reporting the following:

  • Bankruptcy cases that precede the report by more than 10 years
  • Paid tax liens that precede the report by more than seven years
  • Accounts placed for collection or charged to profit and loss that precede the report by more than seven years
  • Civil suits, civil judgments, and records of arrest that precede the report by more than seven years
  • Any other adverse information, other than records of convictions that precede the report by more than seven years
  • Any arrest record older than seven years. For employees reasonably expected to earn $75,000 or more per year, the above time limits do not apply.

In addition to the limitations found in the FCRA, a number of states place limitations on what information may be reported by background screening companies. Information commonly prohibited includes

  • Arrest records
  • Older convictions (number of years varies state to state)
  • Dismissed cases, and discharged cases.

There are several states with reporting limitations or special requirements related to background reports and their content beyond those of the FCRA. Specific requirements vary and include:

  1. Reporting and/or use limitations for CRAs and/or employers
  2. The inclusion of a check box on the disclosure/authorization for the applicant to request a copy of their background report, and
  3. The prohibition of reporting arrests which did not lead to conviction.

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