Common FCRA mistakes and lawsuits
The Fair Credit Reporting Act steps employers skip, stated from the statute and the FTC page, without invented verdicts.
- 49 min
- 7 modules + exam
- Certificate of completion
For employers, HR, and hiring managers in the United States.
What you will be able to do
- Keep the employment disclosure in a document that consists solely of the disclosure
- List what must reach the person before and after adverse action
- Tell 1681n apart from 1681o without inventing a damages figure
Syllabus
- 1Lawsuits follow missed duties, not a secret listThis course names the statutory duties people skip. It does not inventory verdicts or settlement amounts.6 min(open)
- 2The disclosure has to stand alone15 U.S.C. 1681b(b)(2)(A) requires a written disclosure in a document that consists solely of the disclosure, before the report is procured.8 min
- 3Employment purpose is not 'while we have the file'You certify employment. A later use for credit, curiosity, or a tenant screen is a different permissible-purpose problem.6 min
- 4Adverse action starts before the rejection15 U.S.C. 1681b(b)(3) requires the report and the summary of rights before you take the action.7 min
- 5The after-action notice is its own letter15 U.S.C. 1681m names the agency, denies that the agency made the decision, and states the dispute and 60-day rights.7 min
- 6Willful and negligent are different statutes1681n and 1681o both create liability. Only the willful section prints a $100 to $1,000 figure in the alternative to actual damages.8 min
- 7A perfect notice file can still be a bad hiring ruleThe FTC and EEOC say equal employment law still applies. A blanket ban is not saved by the FCRA letters.7 min
- Final exam10 questions. 80% passes. Opens after the last module.
- Certificate of completionYour name, the course, and the date, with a public page anyone can check.
Sources
The primary sources this course is written from.
- U.S. Government Publishing Office: 15 U.S.C. 1681b
- U.S. Government Publishing Office: 15 U.S.C. 1681n
- U.S. Government Publishing Office: 15 U.S.C. 1681o
- U.S. Government Publishing Office: 15 U.S.C. 1681m
- Federal Trade Commission: Using Consumer Reports: What Employers Need to Know
- U.S. Equal Employment Opportunity Commission: Background Checks: What Employers Need to Know (with the FTC)
Run compliant pre-hire checks for $5
PreHireBadge runs FCRA-compliant employment background checks for $5, with identity verification built in, no monthly fees, and the notices and waiting period handled for you. Create a free account and invite your first candidate in minutes.
Visit PreHireBadge