Fair Credit Reporting Act (FCRA)

D.C. joins 11 other jurisdictions (California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont and Washington) in banning employers’ use of employees’ or applicants’ credit histories.

It is a common practice for employers to check criminal backgrounds or credit ratings of potential, and sometimes current, employees.  Background checks that provide this type of information are helpful to employers when evaluating candidates for employment, as such information can help safeguard a business and limit exposure to liability for negligent hiring.  When an employer runs a background check, however, it must be sure to comply with the many requirements of the federal Fair Credit Reporting Act (FCRA). (more…)