Navigating the laws that govern employee background checks can be tricky but understanding the top few regulations can go a long way. For instance, the Fair Credit Reporting Act (FCRA) is a key regulatory obligation for employee background checks, not necessarily impacting whether an employee background check can be conducted, but rather the manner in which such checks must be conducted. Several state laws, such as the Investigative Consumer Reporting Agencies Act (ICRAA) and the Consumer Credit Reporting Act (CCRAA), as well as Ban the Box and Drug Screen laws, are all aimed at preventing discrimination and protecting the privacy and medical rights of applicants and employees.
