FCRA FCRA Employment Screening & Background Checks 1 — Questions and Answers
Question 1: Under the FCRA, before an employer takes adverse action based on a consumer report, which document must be provided to the applicant?
- A copy of the consumer report and a Summary of Rights (Correct answer)
- Only a written notice of denial
- A verbal explanation of the adverse information
- A request for the applicant to dispute directly with the employer
Correct answer: A copy of the consumer report and a Summary of Rights
Before adverse action, employers must give the applicant a copy of the consumer report and the FCRA Summary of Rights so they can dispute inaccuracies.
Question 2: Which term describes the FCRA-mandated waiting period between sending the pre-adverse action notice and finalizing the adverse action?
- A reasonable period of time, typically interpreted as at least 5 business days (Correct answer)
- 30 calendar days
- 72 hours exactly
- 14 business days
Correct answer: A reasonable period of time, typically interpreted as at least 5 business days
The FCRA requires a reasonable time (courts and the FTC generally recognize at least 5 business days) between the pre-adverse notice and final adverse action.
Question 3: When using a consumer reporting agency (CRA) for employment screening, what is the employer's first FCRA obligation BEFORE ordering the report?
- Obtain the applicant's written authorization on a standalone document (Correct answer)
- Notify the applicant via email only
- Certify to the CRA that it will pay a fee
- Provide the applicant with a copy of the employer's privacy policy
Correct answer: Obtain the applicant's written authorization on a standalone document
Employers must obtain clear, written authorization from the consumer on a document that stands alone—not buried in a job application—before requesting a consumer report.
Question 4: Which class of workers is explicitly covered by FCRA employment provisions when a company hires them through a staffing agency?
- Independent contractors placed by the agency for more than one employer (Correct answer)
- Only W-2 employees of the staffing agency
- Only workers earning above $75,000 annually
- Only full-time permanent hires
Correct answer: Independent contractors placed by the agency for more than one employer
The FTC has confirmed that independent contractors procured through staffing agencies are covered by FCRA employment screening requirements.
Question 5: For employment purposes, the FCRA prohibits CRAs from reporting most civil suits, civil judgments, and arrest records that are older than how many years?
- 7 years (Correct answer)
- 3 years
- 10 years
- 5 years
Correct answer: 7 years
Under FCRA §605, most adverse civil and arrest record information older than 7 years cannot be included in consumer reports used for employment decisions.
Question 6: An employer using investigative consumer reports (ICRs) must notify the applicant within how many days of requesting the report?
- 3 days (Correct answer)
- 7 days
- 14 days
- 30 days
Correct answer: 3 days
FCRA §606 requires employers to notify the consumer in writing within 3 days of requesting an investigative consumer report.
FCRA FCRA Employment Screening & Background Checks 1
Under the FCRA, before an employer takes adverse action based on a consumer report, which document must be provided to the applicant?