Section 45 Fair Credit Reporting Act

• Library: Employer-Employee Law 2008

An employer’s use of a third party in the background- and reference-checking process implicates the Fair Credit Reporting Act (FCRA), 15 U.S.C. §§ 1681 et seq. The FCRA applies to the extent the third party communicates to the employer:

any information . . . bearing on a consumer’s . . . credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in...