Employment Law Blog

After criminal background checks, credit checks are probably the next most-often factor searched on prospective employees.  It doesn’t matter whether the job is within the banking or finance industry either.  As long as the provisions of the Fair Credit Reporting Act are followed (see Part II in this series), an employer may run a credit check and utilize the information learned in making a decision whether to hire or not.

It’s Not Just For Lending Anymore

Obtaining an individual’s credit report does more than tell you that person’s credit score.  It also …(read more)

Of all the information an employer may want on a prospective or current employee, the person’s criminal record may be the most sought after.  A person’s criminal history (or lack thereof) can provide important clues as to the individual’s honesty and integrity, propensity toward violence, and other sensitive issues.

In the last installment – Part II in this series – we looked at the requirements of the Fair Credit Reporting Act (FCRA) on consumer reports in general.  Although the name implies credit reporting, FCRA governs a wide variety of “consumer information,” …(read more)

The Fair Credit Reporting Act (FCRA) is an 85-page piece of federal legislation regulating the collection and dissemination of a wide variety of consumer information, including credit history and status but also much more.  If you are seeking information on an employee or applicant from a third-party source, chances are your actions are governed by the FCRA and need to comply with the law in order to avoid civil penalties or a private lawsuit.

The Act covers reports created by Consumer Reporting Agencies, which is basically a company in the business …(read more)

It is a common practice for employers to run background checks on prospective employees.  A background check can be used to verify the accuracy of an employment application by providing information on an individual’s social security number; address; places and dates of education, including degrees obtained; and current or past places of employment.  Much of this information is publicly available or readily obtainable by a professional screening service.

But a background check can do much more.  A background check may also be used to investigate a person’s criminal background, including arrests, …(read more)