FCRA-Compliant Employment Background Checks for Employers
The Fair Credit Reporting Act governs every background check you run on a job applicant — from the standalone disclosure you hand them before the search to the adverse action notice you send if you decide not to hire. Get the sequence wrong and you’re exposed to statutory damages, even when the report itself was completely accurate.
BCS Background Screening has operated as a consumer reporting agency since 2010. Every report is researched and reviewed by analysts in the United States — never offshored — and we supply the disclosure, authorization, and adverse action forms you need to stay compliant at each step.
Questions? Call (800) 661-0278
- ✓ Most reports completed same day
- ✓ U.S. based analysts, never offshored
- ✓ CRA since 2010
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What is FCRA employment screening?
FCRA employment screening is any background check on a job applicant or employee performed by a third-party consumer reporting agency and used to make an employment decision. The moment you order a report from a CRA rather than searching records yourself, the Fair Credit Reporting Act applies — and it applies to hiring, promotion, reassignment, retention, and termination decisions alike.
The report a CRA produces is a consumer report under the statute. That single classification is what triggers your obligations: written disclosure, written authorization, certification to your provider, and a two-step adverse action process if the report leads to a negative decision.
Two points employers frequently get wrong:
- It applies to internal candidates too. Screening a current employee for a promotion carries the same requirements as screening an outside applicant.
- Searching records yourself is a different legal posture. An employer that pulls public records directly isn’t acting as a CRA and isn’t bound by the FCRA’s reporting limits — but it also loses the accuracy protections, the dispute infrastructure, and the defensible audit trail that come with using one. In practice, self-searching trades one category of risk for a larger one.
FCRA requirements every employer must follow
The FCRA prescribes a sequence, and the order matters as much as the content. Below is what the statute requires at each stage.
1. Standalone written disclosure
Before you order a report, you must give the applicant a clear and conspicuous written notice that you may obtain a consumer report for employment purposes.
This notice must be its own document. The FTC is explicit: the disclosure “must be in writing and in a stand-alone format. The notice can’t be in an employment application.” Under FCRA § 1681b(b)(2)(A), it must appear in a document that consists solely of the disclosure.
The most litigated requirement in the statute
Burying disclosure language in a job application, an offer letter, an onboarding packet, or a handbook acknowledgment is the single most common way employers generate class-action exposure — and it happens to employers whose actual screening practices are otherwise sound. You can include narrowly relevant ancillary information, such as a brief description of what a consumer report contains, but nothing that confuses or detracts from the notice itself. Liability waivers and at-will employment language do not belong on this form.
If you’re requesting an investigative report — one based on personal interviews about character, reputation, or lifestyle — you must additionally tell the applicant they have the right to a description of the nature and scope of the investigation.
2. Written authorization
You need the applicant’s written permission before any report is ordered. No authorization, no background check.
Electronic signatures satisfy this requirement. The authorization may appear on the same page as the disclosure, but it cannot be bundled with unrelated hiring paperwork. If you want the authorization to cover reports obtained throughout the person’s employment — for continuous monitoring, for example — the FTC requires you to say so clearly and conspicuously on the form.
3. Certification to your screening provider
Before we release a report to you, the FCRA requires you to certify to us that you:
- notified the applicant and obtained their permission to obtain a background report;
- complied with all FCRA requirements; and
- will not discriminate against the applicant or employee, or otherwise misuse the information, in violation of federal or state equal opportunity laws.
We build this certification into account setup so it’s documented rather than assumed. It’s a requirement we’re directly party to, and one that a lot of employers don’t realize they’ve made.
4. Permissible purpose
The FCRA permits employment screening only to evaluate a person’s fitness for a position. Hiring, promotion, reassignment, retention, and termination all qualify. Curiosity does not, and neither does screening someone who hasn’t applied and hasn’t authorized it.
5. The two-step adverse action process
If information in the report may cause you to decide against a candidate, you cannot simply decline them. The FCRA requires two separate notices with a waiting period between.
Step one — pre-adverse action notice. Before you take action, send the candidate a notice that you’re considering an adverse decision, together with a complete copy of the consumer report you relied on and a copy of A Summary of Your Rights Under the Fair Credit Reporting Act.
Wait a reasonable period. The statute says “reasonable” without defining it. FTC guidance and settled industry practice converge on five business days as the defensible floor, measured from the candidate’s receipt of the notice rather than your send date. Some state and local fair-chance laws require longer, and some require additional time when a candidate disputes the findings. Check your jurisdiction before you set a standard hold period — see our screening laws by state reference.
Step two — final adverse action notice. If you proceed after the waiting period, send a second notice that includes:
- the name, address, and telephone number of the consumer reporting agency that supplied the report;
- a statement that the CRA did not make the decision and cannot explain the specific reasons for it; and
- notice of the candidate’s right to dispute the accuracy or completeness of the information, and to obtain a free copy of the report from the CRA within 60 days.
The two notices must never go out simultaneously. Sending them together defeats the entire purpose of the waiting period, and courts have treated it as a straightforward violation.
6. Record retention
Keep your hiring records — including applications from candidates you didn’t hire, disclosures, authorizations, and screening results. FTC guidance requires preservation for one year after the record was made or after the personnel action was taken, whichever is later. Longer retention is often prudent given the FCRA’s two-year discovery and five-year absolute limitations periods.
Our FCRA screening process
We’ve built the compliance sequence into the workflow so the required steps happen in the required order.
Disclosure and authorization
We supply FCRA-compliant standalone disclosure and authorization forms, plus the FTC Summary of Rights. You can collect signatures on paper or let the applicant complete everything from their phone with iScreenHire.
Research and verification
Our analysts gather the searches you’ve selected: criminal records at the county, state, and federal level; motor vehicle records; identity and SSN verification. Every report is researched and reviewed in the United States. We never offshore your applicants’ personal data.
Your report
You receive a completed report in your client portal, structured for the decision you actually have to make. Most reports are finished the same day they’re ordered.
Adverse action support, if needed
If the report changes your decision, we walk you through the two-step sequence. You can generate pre-populated adverse action letters wiht one-click from your portal.
Hire with confidence
Compliant reports, U.S.-based analysts, most orders returned same day. No setup fee and no monthly minimum when you pay by credit card.
Questions? Call (800) 661-0278
What’s included in an employment screening report
Build the report around the role. You pay only for the searches you run — no setup fees, and no monthly fees when paying by credit card. Our services are available to verified businesses with a permissible purpose.
Criminal record searches
| Search | What it tells you |
|---|---|
| Nationwide Criminal Database | Broad first-pass pointer search across aggregated records. A starting point, not a decision basis — see the 613(a) note below. |
| County Court Criminal Search | Direct search at the originating court. The most accurate and defensible criminal source. |
| Statewide Real-Time Criminal Search | Live query against state repository records. |
| US Federal District Court Criminal Search | Federal offenses — fraud, trafficking, weapons, interstate crimes — which never appear in county records. |
| Nationwide Wants & Warrants | Active warrants and outstanding wants. |
| Continuous Criminal Monitoring | Ongoing post-hire alerts on new records. Requires authorization language covering the full employment period. |
Identity and SSN verification
| Search | What it tells you |
|---|---|
| SSN Address History Trace | Address history that tells you which jurisdictions to search. Run this first — it’s what makes the criminal search complete. |
| CBSV Consent Based SSN Verification | Direct SSA confirmation that name and SSN match. |
| TIN Matching | IRS taxpayer identification number verification. |
Employment, education, and reference verification
| Search | What it tells you |
|---|---|
| Former Employment Verification | Confirms dates, titles, and separation from prior employers. |
| Education Verification | Confirms degrees, dates, and institutions — including whether the institution is accredited. |
| Automated Reference Verification | Structured reference responses collected automatically. |
| E-Verify Integration | Federal employment eligibility confirmation. |
Driving records, financial, and drug screening
| Search | What it tells you |
|---|---|
| Driving Records — Real-Time DMV | Live MVR pull. Essential for any role involving a vehicle. |
| Bankruptcy, Tax Liens & Judgments | Statewide financial records. Note the seven-year limits and state credit-check restrictions. |
| DOT and Non-DOT Drug Screening | Regulated and standard panels. |
iScreenHire — applicant-completed mobile intake
Instead of your team collecting and keying in applicant data, iScreenHire sends the candidate a secure mobile link. They enter their own information, complete the disclosure and authorization electronically, and submit — from a phone, in a few minutes.
- Fewer errors. Applicants enter their own identifiers, so typos in names, dates of birth, and SSNs largely disappear — and those typos are the leading cause of incomplete or mismatched searches.
- Faster turnaround. The order enters our queue as soon as the candidate submits, not when someone on your side gets to the data entry.
- Cleaner compliance record. Electronic disclosure and authorization are captured and timestamped automatically.
What to do when derogatory records are found
A derogatory finding is the beginning of a process, not the end of a decision. Here’s the sequence we recommend.
Verify at the source
If the record surfaced in a database search, confirm it is current and accurate at the originating source — the county criminal court or a real-time state government search. Database records can be incomplete, outdated, or attached to the wrong person.
Send the pre-adverse action notice
Include a complete copy of the report and the FCRA Summary of Rights. Wait at least five business days from the candidate’s receipt before proceeding, longer if your jurisdiction requires it.
Conduct an individualized assessment
Per EEOC enforcement guidance, weigh the nature and gravity of the offense, the time elapsed since it occurred, and its relationship to the specific duties of the job. A blanket exclusion policy applied to all convictions regardless of relevance is a Title VII risk independent of the FCRA.
Decide
Hire, or decline. Some candidates provide context or documentation during the waiting period that changes the picture.
If declining, send the final adverse action notice
Include the CRA’s name, address, and phone number, the statement that the CRA did not make the decision, and the candidate’s dispute and free-report rights.
The 613(a) letter — and why we advise against relying on it
FCRA § 613(a) offers CRAs an alternative to verifying public record information at the source: notify the consumer at the time the information is reported to the employer that adverse public record information is being reported, along with the name and address of the recipient. Some providers use this to skip county court verification.
It’s genuinely faster and cheaper. It also shifts the accuracy problem to the person least equipped to catch it in time.
Our recommendation: verify at the county court from the start
If the candidate disputes the finding — and database records are disputed often, because they’re frequently stale or misattributed — you end up at the county court anyway, having already delayed the hire and generated a paper trail showing you acted on unverified data. Given the volume of FCRA litigation around database accuracy, we advise the strict approach from the outset: verify every derogatory finding at the originating court before it reaches a hiring decision. It costs slightly more per report and it removes the failure mode that produces lawsuits.
A nationwide database search is an excellent tool for deciding where to look. It is not a sound basis, on its own, for declining to hire someone.
State-level restrictions employers should know
Federal FCRA is the floor, not the ceiling. State and local law frequently restricts more than the FCRA does, and where they conflict, the more protective rule governs.
What the seven-year rule actually limits
This is widely misunderstood, so it’s worth stating precisely. Under federal FCRA, criminal convictions have no reporting time limit. The Consumer Reporting Clarification Act of 1998 removed that restriction; the FTC has confirmed that convictions “may now be reported regardless of the length of time that the conviction antedates the report.” The federal seven-year limit under § 605(a) applies to non-conviction information:
| Item | Federal FCRA reporting limit |
|---|---|
| Criminal convictions | No federal limit |
| Arrests and charges without conviction | 7 years from date of entry |
| Civil suits and civil judgments | 7 years, or until the statute of limitations expires — whichever is longer |
| Paid tax liens | 7 years |
| Collection accounts | 7 years |
| Bankruptcies | 10 years |
Each item carries its own clock. Per the CFPB’s 2024 advisory opinion, a later event does not restart the reporting period for an earlier one — a subsequent non-conviction disposition doesn’t reopen the window on an old arrest. And even where a conviction is reportable indefinitely, the underlying arrest record remains subject to its own seven-year period.
States that restrict criminal reporting beyond the federal floor
These states impose their own limits — commonly seven years on convictions — under state law:
| State | Restriction |
|---|---|
| California | Seven-year limit; additional 2023 regulatory requirements — see below |
| Colorado | Seven-year limit on criminal reporting |
| Kansas | Seven-year limit on criminal reporting |
| Maine | Seven-year limit on criminal reporting |
| Maryland | Seven-year limit on criminal reporting |
| Massachusetts | Seven-year limit on criminal reporting |
| Montana | Seven-year limit on criminal reporting |
| Nevada | Seven-year limit on criminal reporting |
| New Hampshire | Seven-year limit on criminal reporting |
| New Mexico | Seven-year limit on criminal reporting |
| New York | Seven-year limit; extended adverse action timing under local fair-chance law |
| Texas | Seven-year limit on criminal reporting |
| Washington | Seven-year limit on criminal reporting |
See full screening laws by state →
The $75,000 salary exception — and its limits
FCRA § 605(b)(3) exempts § 605(a)’s time limits where employment at an annual salary of $75,000 or more is reasonably expected. If you rely on it, state so clearly on the applicant’s authorization form.
Important: this exception lifts the federal limit only. The state restrictions above arise under state law, which § 605(b)(3) does not override. A $75,000 salary does not give you access to older records in California or New York. Confirm the rule in the applicant’s jurisdiction rather than assuming the federal exception controls.
Ban the Box and fair-chance hiring
Ban the Box laws prohibit asking about criminal history during the initial application stage. Under a typical fair-chance framework, the inquiry comes after the interview and skills assessment, with any offer made contingent on the results of the background check.
Coverage varies by state, county, and city, and thresholds often depend on employer size. Confirm what applies at each of your hiring locations — not just your headquarters. Ban the Box policies (PDF) →
California and Los Angeles County
California regulations effective October 2023 added restrictions, clarified existing requirements, and materially changed the state’s background check process. If you hire in California, your disclosure forms, timelines, and individualized assessment documentation all need to reflect the current rules (analysis from Ogletree Deakins).
Separately, since February 2024 the Superior Court of Los Angeles County no longer accepts month and year of birth as search criteria in its criminal name search engines, at courthouse kiosks or on LACourt.org. This significantly limits identity confirmation for Los Angeles County criminal searches. For common name combinations the impact is substantial, and even an apparent match on an uncommon name cannot be verified to a certainty. If you hire in LA County, plan for longer verification timelines and expect more results that require secondary confirmation.
ATS integration partners
Our client portal connects directly to most applicant tracking systems (too many to list here!), so employment screening orders and results move without manual re-entry.
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Frequently asked questions about FCRA background checks
What is an FCRA background check?
Do I need written consent before running a background check?
Yes. You must provide a written disclosure and obtain the applicant’s written authorization before ordering a report. Electronic signatures are acceptable. Without authorization, the report cannot be run.
Does the FCRA disclosure have to be a separate document?
Yes. The FTC requires the disclosure to be in a standalone format — it cannot appear in an employment application, offer letter, or onboarding packet. This is the most frequently litigated FCRA requirement, and bundling the disclosure with other paperwork is the most common violation.
How far back can an employment background check go?
Under federal FCRA there is no time limit on reporting criminal convictions. The seven-year limit applies to non-conviction items: arrests without conviction, civil suits and judgments, paid tax liens, and collection accounts. Bankruptcies may be reported for ten years. Several states impose their own seven-year limits on convictions under state law.
What is the adverse action process, and how long do I have to wait?
It’s a two-step process. First send a pre-adverse action notice with a copy of the report and the FCRA Summary of Rights. Then wait a reasonable period — five business days from the candidate’s receipt is the widely accepted floor — before sending the final adverse action notice. Some state and local laws require longer.
What is a 613(a) letter, and should I use one?
A 613(a) letter notifies the applicant that adverse public record information is being reported, letting the CRA skip verifying that record at the originating court. It’s faster and cheaper, but if the applicant disputes the finding you must verify at the county court anyway. We recommend verifying at the source from the start.
Which states limit criminal reporting to seven years?
California, Colorado, Kansas, Maine, Maryland, Massachusetts, Montana, New Hampshire, New Mexico, Nevada, New York, Texas, and Washington restrict criminal reporting beyond the federal baseline. Requirements change, so confirm the current rule for each state where you hire.
Does the $75,000 salary exception let me see older records?
It lifts the federal seven-year limit under FCRA § 605(b)(3) where annual salary is reasonably expected to be $75,000 or more, and you must disclose reliance on it on the authorization form. It does not override state-law restrictions — so in states with their own seven-year limits, the federal exception doesn’t apply.
Does Ban the Box apply to my business?
It depends on your hiring locations and often your employer size. Ban the Box and fair-chance laws exist at state, county, and city level, and they apply where the role is located rather than where your company is headquartered. Check every location where you hire.
How long does an employment background check take?
Most of our reports are completed the same day they’re ordered. County court searches in jurisdictions requiring in-person retrieval, and verifications that depend on a third party responding, can take longer. Los Angeles and Sacramento County in California criminal searches currently take additional time due to changed court search criteria.