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FCRA Compliance News

Stay current on Fair Credit Reporting Act compliance, background screening regulations, and employment law developments that affect how employers use background checks in hiring decisions.

What Is the FCRA?

The Fair Credit Reporting Act (FCRA) is a federal law that regulates the collection, dissemination, and use of consumer information, including background check reports. It establishes rights for consumers and obligations for employers and consumer reporting agencies.

Why It Matters for Employers

Employers who use background checks in hiring must comply with FCRA requirements, including providing a disclosure, obtaining written authorization, and using reports only for permissible purposes. Non-compliance can result in civil lawsuits and FTC enforcement.

Staying Informed

FCRA enforcement, state fair chance laws, and EEOC guidance continue to evolve. This page provides updates and educational content to help employers stay current and maintain compliant hiring practices.

LATEST UPDATES

Compliance News & Articles

Regulatory UpdateJanuary 2025

FTC Enforcement Trends: What Employers Need to Know

The Federal Trade Commission (FTC) continues to actively enforce the FCRA against both consumer reporting agencies and employers. Recent enforcement actions have focused on improper permissible purpose claims, failure to maintain reasonable procedures for accuracy and incomplete authorization processes. Employers should review their background check procedures annually to ensure ongoing compliance with FTC guidance.

State Law UpdateDecember 2024

Ban-the-Box and Fair Chance Laws: A Growing Patchwork

More than 35 states and 150 cities and counties have now enacted some form of ban-the-box or fair chance hiring legislation. These laws generally restrict when employers can ask about criminal history during the hiring process, with many requiring that a conditional offer of employment be extended before a background check is initiated. Employers operating in multiple jurisdictions must navigate a complex and evolving set of requirements. SaffHire's compliance team monitors these developments and updates our processes accordingly.

EEOC GuidanceNovember 2024

EEOC Guidance on Criminal Records: The Individualized Assessment

The Equal Employment Opportunity Commission (EEOC) has long maintained that blanket exclusion policies based on criminal history can violate Title VII of the Civil Rights Act if they have a disparate impact on protected classes. The EEOC recommends that employers conduct an individualized assessment of each applicant's criminal record, considering the nature of the crime, the time elapsed since the offense, and the nature of the job. SaffHire's reports are designed to provide the information needed to conduct this assessment.

Best PracticesOctober 2024

Maintaining a Written Background Check Policy

One of the most effective steps an employer can take to protect itself from FCRA liability is to maintain a written background check policy. This policy should define which positions require a background check, what types of searches are conducted, and how results are evaluated. A well-documented policy demonstrates that the employer applies its screening criteria consistently and in a non-discriminatory manner.

Consumer RightsSeptember 2024

Applicant Rights Under the FCRA: A Summary for Employers

Applicants have significant rights under the FCRA that employers must respect. These include the right to be notified when a consumer report is being obtained, and the right to dispute inaccurate or incomplete information. Employers who fail to honor these rights face potential civil liability and FTC enforcement action.

OFFICIAL RESOURCES

Key Regulatory Resources

FTC: Fair Credit Reporting Act

Official FTC guidance and the full text of the FCRA.

EEOC: Criminal History Guidance

EEOC enforcement guidance on the use of arrest and conviction records.

CFPB: Summary of Consumer Rights

Consumer tools and the official Summary of Your Rights Under the FCRA.

DOL: Fair Chance Hiring

Department of Labor resources on fair chance hiring practices for federal contractors.

Questions About Compliance?

SaffHire's team is available to help you understand your obligations under the FCRA and build a compliant background screening program.

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