At People First, we’re often asked great questions that help business owners stay compliant and confident in their hiring practices.
This week, one of our clients reached out with a common concern:
“We use a background screening company, but we don’t do any credit checks. Do we still need to follow the Fair Credit Reporting Act (FCRA) rules?”
It’s a great question — and the answer is yes.
Even if a background report doesn’t include credit information, the FCRA still applies when a third-party screening company is used. That means employers must provide applicants with:
- A clear written disclosure and authorization form before running a background check.
- A pre-adverse action notice if something in the report may impact hiring decisions.
- A final adverse action notice if the decision not to hire (or to terminate) is made.
After reviewing our guidance and the sample forms we provided, our client replied:
“Thank you so much for the clarification and for sending the sample forms. I really appreciate your help and the detailed guidance. This was very helpful.”
That’s what we love to hear — compliance made clear, and clients who feel confident and supported.
At People First, we believe peace of mind should come standard with every policy, process, and person we serve.
