What Cannot Be in a Background Check Report?
The federal Fair Credit Reporting Act (FCRA) sets national standards for employment screening. However, the law only applies to background checks performed by an outside company, called a “consumer reporting agency” under the FCRA. The law does not apply in situations where the employer conducts background checks in-house. Your state may have stronger laws, such as California’s Investigative Consumer Reporting Agencies Act (Civil Code 1786) and the California Consumer Credit Reporting Agency Act (Civil Code 1785). In addition, many state labor codes and state fair employment guidelines limit the content of an employment background check. Under the FCRA, a background check report is called a “consumer report.” This is the same “official” name given to your credit report, and the same limits on disclosure apply. The FCRA says the following cannot be reported: Bankruptcies after 10 years.
