Being responsible for hiring new employees means exercising due diligence to ensure the professionals you select are the best fit for your organization. In addition to evaluating skills and experience, many companies also use background checks to assess a candidate’s educational and employment history, credit, criminal record and more (depending on the industry and position). Applicants have come to expect this step in the hiring process, and HR leaders are used to carrying them out.
Yet, several organizations are now facing steep fines for violating the Fair Credit Reporting Act (FCRA) as part of their background check process. For example, earlier this year, Delta Air Lines agreed to pay a $2.3 million settlement for a class-action lawsuit alleging the company failed to provide more than 40,000 applicants with the appropriate FCRA background check disclosure, according to information from HR Dive.
Here’s what you need to know to help you avoid these types of penalties and ensure your practices comply with FCRA: