FCRA FCRA Employment Screening & Background Checks

Question 1

Under the FCRA, before an employer takes adverse action based on a consumer report, which document must be provided to the applicant?

Accepted Answer

A copy of the consumer report and a Summary of Rights

Answer

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?

Accepted Answer

A reasonable period of time, typically interpreted as at least 5 business days

Answer

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?

Accepted Answer

Obtain the applicant's written authorization on a standalone document

Answer

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?

Accepted Answer

Independent contractors placed by the agency for more than one employer

Answer

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?

Accepted Answer

7 years

Answer

Under FCRA §605, most adverse civil and arrest record information older than 7 years cannot be included in consumer reports used for employment decisions.

(FCRA) Advanced Fair Credit Reporting Act Certification Practice Test

(FCRA) Advanced Fair Credit Reporting Act Certification Practice Test

FCRA FCRA Employment Screening & Background Checks