The Fair Credit Reporting Act
, or FCRA, along with the other laws such as
the Equal Employment Opportunity Commission and Ban-the-Box
are responsible for setting legal
guidelines for companies looking to run background checks on their employees.
To protect the privacy of job applicants and employees, these laws limit the amount of
sensitive personal information HR managers are allowed to access when making hiring decisions.
Businesses who decide to screen employees are legally obligated to only use credit reporting
agencies that are certified as FCRA-compliant.