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Currently viewing the tag: "credit report"
The Fair Credit Reporting Act (FCRA) is a United States federal law that protects the accuracy and privacy of the information found in consumer reports, such as credit reports and criminal histories. As an employer, you may obtain consumer reports for employment purposes through a third-party background check provider.
California recently became the seventh state to address the use of credit reports for employment background screening purposes. California Governor Jerry Brown signed Assembly Bill 22 (AB 22) which restricts when employers lawfully can use “consumer credit reports.” AB 22 is effective as of January 1, 2012.
As the legal and regulatory landscape around credit screening evolves, it is recommended that employers develop their credit screening programs with a focus on mitigating legal risks. Below are some tips for building credit check programs that also mitigate certain legal and regulatory risks.
A recent ruling by the U.S. 3rd Court of Appeals confirmed that a private employer may refuse to hire someone based on a past bankruptcy without violating federal bankruptcy law. In a hiring environment in which there are more questions than answers regarding the [...]
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