FCRA for employers: the basics
A plain-language tour of the Fair Credit Reporting Act duties that sit under an employment consumer report, with links to the FTC and EEOC pages.
- 51 min
- 7 modules + exam
- Certificate of completion
For employers, HR, and hiring managers in the United States.
What you will be able to do
- Name employment as the purpose you certify
- Tell a standalone disclosure apart from an application form
- List what must go to the candidate before and after adverse action
Syllabus
- 1What the FCRA isThe Fair Credit Reporting Act is the federal statute that governs consumer reports used for employment.8 min(open)
- 2Employment is a permissible purposeYou may request a consumer report only for a purpose the statute allows. PreHireBadge is built for employment.7 min
- 3A disclosure that stands aloneBefore you get a report, the candidate must see a written disclosure in a document that consists solely of that disclosure.8 min
- 4Written authorizationYou also need the person's written permission before the report is procured.7 min
- 5If the report might change the decisionThe FCRA splits the notice into a step before you take adverse action and a step after.8 min
- 6Equal employment opportunity still appliesA lawful consumer report does not let you use records in a way that breaks Title VII or other equal employment laws.7 min
- 7What PreHireBadge stores for youThe product records the notices, the authorization, and the later adverse-action steps. You still own the hiring decision.6 min
- Final exam10 questions. 80% passes. Opens after the last module.
- Certificate of completionYour name, the course, and the date, with a public page anyone can check.
Sources
The primary sources this course is written from.
- Federal Trade Commission: Using Consumer Reports: What Employers Need to Know
- Federal Trade Commission: Fair Credit Reporting Act
- Consumer Financial Protection Bureau: Fair Credit Reporting Act resources, including the summary of rights
- U.S. Equal Employment Opportunity Commission: Background Checks: What Employers Need to Know (with the FTC)
Run compliant pre-hire checks for $5
PreHireBadge runs FCRA-compliant employment background checks for $5, with identity verification built in, no monthly fees, and the notices and waiting period handled for you. Create a free account and invite your first candidate in minutes.
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