When Is a Background Check Covered by the Fair Credit Reporting Act?

A background check is covered by the Fair Credit Reporting Act (FCRA) when an employer gets it from a consumer reporting agency and uses it for employment purposes. Under 15 U.S.C. 1681a(d)(1), a consumer report is any written, oral or other communication of information by a consumer reporting agency bearing on a person's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics or mode of living that is used or expected to be used as a factor in deciding eligibility for employment purposes, among other purposes.

Under 15 U.S.C. 1681a(h), employment purposes means evaluating a person for employment, promotion, reassignment or retention as an employee. A report used for any of these decisions is covered, whether the person is an applicant or a current employee.

According to the EEOC and FTC publication Background Checks: What Employers Need to Know, employers sometimes look into a person's work history, education, criminal record, financial history, medical history or use of social media. The publication states that, except for certain restrictions related to medical and genetic information, it is not illegal for an employer to ask about a person's background or to require a background check. Any background information used for an employment decision must still comply with federal laws against discrimination, regardless of how the employer got the information.

The publication also advises employers to review state and local laws, because some states and municipalities regulate the use of background information for employment purposes. The FCRA steps before a report is ordered are covered in Does an Employer Need Written Permission to Run a Background Check?.

The Background Checks category of the MyDrugTesting.com directory lists background screening providers, and many of the listing names also mention fingerprinting.