FCRA Compliance

FCRA Compliance with background screening laws is not optional!

FCRA compliance

FCRA compliance

Applicants have specific federal and state rights which must always be respected if you want to stay out of court. As your partner in this endeavor, HireSafe operates in the CALIFORNIA compliance mode for every client, ensuring that all of our work is performed to the highest levels of scrutiny so that our clients are always protected.

Samples of compliance considerations provided by HireSafe are:
  • The Fair Credit Reporting Act (FCRA) on vendor and employer requirements, such as Adverse Action
  • Fair and Accurate Credit Transaction (FACT) Act on dispute processes, identity theft, and other issues
  • Federal Trade Commission regulations and opinions
  • State laws, including varying requirements on giving copies of reports to applicants
  • Report limitations, both state and federal. The Driver’s Privacy Protection Act (DPPA)
  • The Gramm-Leach-Bliley Act (GLBA)
  • Department of Transportation regulations
  • State consumer privacy laws
  • Drug testing requirements
  • Federal Trade Commission regulations and opinions
  • Case law, including cases that interpret the FCRA compliance and state privacy laws

We Keep You Informed

Each client at HireSafe has a dedicated account manager as their point of contact who knows and understands their unique set of needs. For clients wanting to read in-depth articles on compliance, our Web site is a convenient and extensive resource. The HireSafe general Blog and newsletter center contain educational features based on trends, changes in laws and court cases involved with the background screening industry.

HireSafe conducts educational Webinars on topics that need more in-depth attention.

FCRA Compliance

We have spent many years building out our professional standards, which define our procedures for everything from business practices, such as making telephone investigative calls, to the design of our proprietary, custom software systems. 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. Our real-world experience has been gained by our 19+ years of focusing on employment screening.

Some specific examples:

  • Our production staff monitors reports for investigative data that is prohibited by the Federal Credit Reporting Act (FCRA), such as criminal charges that were dismissed.
  • The HireSafe InstaScreen web portal makes it easy for you to restrict report viewing to maintain compliance on sensitive records.
  • 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, further reducing your risks and keeping you in compliance. This service is at no additional charge.

FCRA Data Reporting Limitations

Employers should be aware that the FCRA (as well as state law) places limitations on information that can be reported by a background screening company. To comply with employment law, Credit Reporting Agencies such as HireSafe can only sell reports with filtered and compliant data.

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.

Employers should also be aware that 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, convictions that precede the report by a specified numbers of years, dismissed cases, and discharged cases.

As of the most recent update, the following states have 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.

  • California
  • Connecticut
  • Colorado
  • District of Columbia
  • Georgia
  • Hawaii
  • Illinois
  • Kansas
  • Kentucky
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Montana
  • Nevada
  • New Hampshire
  • New Mexico
  • New York
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • Utah
  • Virginia
  • Washington
  • Wisconsin

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