Fair Credit Reporting Act (FCRA): Federal law that regulates the collection, dissemination, and use of consumer information, including consumer credit information. Requires clear disclosure and written authorization for background checks.
Title VII of the Civil Rights Act of 1964: Prohibits employment discrimination based on race, color, religion, sex, and national origin. Background checks must not be used in a discriminatory manner.
Americans with Disabilities Act (ADA): Protects qualified individuals with disabilities from employment discrimination. Background checks must not discriminate against individuals based on disability status.
EEOC Guidelines: Provides guidance on how employers should conduct background checks to avoid discrimination and ensure compliance with federal employment laws.
CFPB Regulations: Consumer Financial Protection Bureau regulations that govern the use of consumer financial information in background checks.
Ban the Box Laws: State-specific laws that restrict employers from asking about criminal history on initial job applications, varying by jurisdiction.
State Credit Check Restrictions: State-specific laws limiting when and how employers can use credit checks for employment purposes.
State Privacy Laws: State-specific regulations governing the collection, use, and protection of personal information during background checks.
Industry-Specific Regulations: Additional background check requirements for specific sectors such as healthcare, education, and financial services.
Standalone Disclosure Requirement: FCRA requirement that the background check disclosure must be in a separate document, not combined with other terms or conditions.
Written Authorization Requirement: Legal requirement to obtain written consent from the candidate before conducting a background check.
Adverse Action Procedures: Legal requirement to notify candidates of potential adverse actions based on background check results and provide opportunity to dispute information.
