Are Criminal Background Checks Subject to the FCRA?

The Fair Credit Reporting Act (FCRA) is a federal law, active since 1970, that regulates the collection and use of information obtained through consumer reporting agencies. Sometimes, employers assume that this law only applies to credit checks and that they do not need to pay attention to it if they aren’t running credit history checks on employees or job candidates. The FCRA applies to all consumer reports. If you are running a criminal background check in an employment setting, you must abide by the FCRA.

Predictim’s New Babysitter Background Check Faces Racial Bias and FCRA Controvers

Will parents soon have a new way to screen their babysitters? A startup company called Predictim has created a technology that uses artificial intelligence to vet babysitter candidates. The system uses an algorithm to collect data on a person, pulling details from social media profiles, online criminal history databases, and other online sources. Predictim rates each candidate on a “risk level” scale. Parents can use this information to decide whether to hire a babysitter. The platform’s launch has been paved with controversy, from racial bias accusations to FCRA compliance challenges.

FTC Imposes Largest Fine for a Background Check Provider After FCRA Violations

Background checks are a useful tool not only for employers but for many other professionals as well, such as landlords who want to screen potential tenants before offering a lease agreement. Those who rely on the background checks they order to make decisions must be able to trust the results they receive. Not only do landlords want to avoid potential liability in the event an applicant alleges discrimination, but inaccurate results could also result in missing an opportunity to work with a reliable tenant. Federal standards, such as the Fair Credit Reporting Act, stipulate providers must take care to ensure accurate results.