All resourcesGlossary
FCRA
The federal statute (15 U.S.C. §1681) governing consumer reports, including pre-employment background checks.
Definition
The Fair Credit Reporting Act regulates how consumer-reporting agencies collect, share, and use information about consumers. For employment screening it requires a stand-alone disclosure, written authorization, accuracy procedures, dispute handling, and the two-step adverse-action notice sequence. Willful violations expose employers and CRAs to statutory damages of $100 to $1,000 per violation plus attorneys' fees (15 U.S.C. §1681n).
Sources
Related terms
- Adverse Action — Any hiring decision based on a consumer report; FCRA §615 requires a two-step notice process.
- CFPB — Federal agency that co-enforces the FCRA alongside the FTC.
- ICRAA — California's parallel statute to the FCRA for investigative consumer reports.
Need help applying this?
SafestHires builds these rules into the screening workflow so adjudicators do not have to remember them. See the compliance hub for the relevant statute set, or contact us to talk through a program.