Federal Regulations for Background Screening Laws

Legal Compliance

All services from Employers Choice Screening are in compliance with state and federal regulations.

Please note that in addition to Federal laws and regulations, individual States may have separate and/or supplementary laws and regulations that also govern employment background screening.

To ensure an employer is in compliance with applicable federal and state laws, your Credit Reporting Agency (CRA) has a duty to inform their clients about the Fair Credit Reporting Act (FCRA), the Federal Trade Commission (the governing federal agency that enforces the FCRA), and all relevant state laws.

Legal Resources

Americans with Disabilities Act (ADA)
The purpose of the Americans with Disabilities Act is to provide a clear and comprehensive national mandate for the elimination of discrimination against individuals with disabilities.

It also provides clear, strong, consistent, and enforceable standards addressing discrimination against individuals with disabilities. Also, it ensures that the Federal Government plays a central role in enforcing the standards established in this chapter on behalf of individuals with disabilities.

Finally, to invoke the sweep of congressional authority, including the power to enforce the fourteenth amendment and to regulate commerce, in order to address the major areas of discrimination faced day-to-day by people with disabilities.

CA Civil Code Section 1.6 and 1.6A
15 U.S.C. 1681 and The Consumer Credit Reporting Reform Act of 1996

Upon notification of the results of a consumer credit reporting agency’s re-investigation pursuant to Section 1785.16, a consumer may make a written demand on any person furnishing information to the consumer credit reporting agency to correct any information which the consumer believes to be inaccurate.

Drivers Privacy Protection Act
This Act generally prohibits states from disclosing personal information that their drivers submit in order to obtain drivers licenses.

“Personal information” under the Act includes an individual’s social security number, photograph, name, driver identification number, telephone number, address (but not 5-digit zip code), and medical or disability information. Information on driving violation, vehicular accidents, and drivers status are not “personal information.” Such information are considered “Public Records.”

EEOC Guidance on Pre-Employment Inquiries
This document provides the EEOC’s position under the Americans with Disabilities Act of 1990, on pre-employment disability-related questions and medical examinations.

Fair Credit Reporting Act (FCRA)
15 U.S.C. 1681 and The Consumer Credit Reporting Reform Act of 1996.

The federal Fair Credit Reporting Act (FCRA) promotes the fairness, accuracy, and privacy of information in the files of consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus, and specialty agencies (such as agencies that sell information about criminal records, employment history, and rental history records). Here is the complete Fair Credit Reporting Act statute.

Fair Debt Collection Practices Act (PDF)
15 U.S.C. § 1692 et seq., is a United States statute added in 1978 as Title VIII of the Consumer Credit Protection Act. It serves to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection, and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information’s accuracy.

FTC Staff Opinion Letters
FTC Staff Opinion Letters is a collection of opinions made by attorneys regarding the Fair Credit Reporting Act. Concerned organizations or consumers may draft a letter documenting their issues or concerns. Industry professionals will then respond with their opinion. These opinions are set forth by the staff of the company responding, and are not binding on the Commission.

Graham-Leach-Bliley Act
Subtitle A of Title V of the Gramm-Leach-Bliley Act (“GLB Act”) has privacy provisions relating to consumers’ financial information.

Under these provisions, financial institutions have restrictions on when they may disclose a consumer’s personal financial information to non-affiliated third parties. Financial institutions are required to provide notices to their customers about their information-collection and information-sharing practices. Consumers may decide to “opt out” if they do not want their information shared with non-affiliated third parties.

Civil Rights and Employee Investigation Clarification Actv (H.R.1543)
This bill amends the Fair Credit Reporting Act to exempt certain communications from the definition of consumer report, and for other purposes.

California Consumer Credit Law (Speier Act)
This law restricts employment reports for consumers (with a current California address) from including age, marital status, race, color, or creed in the reports.

Fair and Accurate Credit Transactions (FACT) Act Notice
The Fair and Accurate Credit Transactions (FACT) Act of 2003 amended the Fair Credit Reporting Act (FCRA) and allows for consumers to obtain a free copy of their consumer file from certain consumer reporting agencies once every 12 months.

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