FCRA for employers

How an employer follows the Fair Credit Reporting Act in PreHireBadge: disclosure, authorization, and adverse action.

Updated 1 of 4 in Compliance and FCRA

PreHireBadge is how a small employer orders an employment report. The duties below come from the Fair Credit Reporting Act.

Who it is for. The owner or admin who will order checks.

  1. Order a report only for employment.
  2. Give the candidate a disclosure that stands alone, then get written authorization.
  3. Do not type the candidate's Social Security number, date of birth, or address into the order.
  4. If you might take adverse action, send the pre-adverse notice and wait.
  5. Send the final notice only after the waiting period, and do not use the report to break equal employment law.

The employer certifies these duties

Accepting the employer agreement records that you will follow them. The text is a draft until counsel approves it. This article is not legal advice.
The documents library: agreement, rights, and notices.
The documents library: agreement, rights, and notices.

The duties are in the Fair Credit Reporting Act. Read the employer agreement and the documents library. The Academy course FCRA for employers: the basics is listed in the Academy now. Common FCRA mistakes and lawsuits is listed in the Academy.

Was this article helpful?