FTC Releases Updated FCRA Guidance on Background Checks

The FTC released a new publication related to background checks and the FCRA titled What Employment Background Screening Companies Need to Know About the Fair Credit Reporting Act. As the name suggests, the publication surveys the obligations that consumer reporting agencies (background check companies or CRAs) have under the FCRA when compiling employment-purposed consumer reports (background reports). The FTC’s publication is a useful resource for employers for learning about the legal requirements governing the preparation of background reports by CRAs, and indirectly highlights several compliance requirements applicable to employers. Although the FTC’s publication speaks to the obligations that CRAs—not employers—have under the FCRA, the timing of the publication reinforces how compliance with the FCRA’s employment provisions remains an enforcement priority for the FTC staff.

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