The document discusses how employers can avoid fines under the Fair Credit Reporting Act (FCRA) when investigating job applicants. It notes that the FCRA regulates how consumer reporting agencies handle personal information and requires employers seeking consumer information on employees or applicants to notify them and get consent. Specifically, employers must notify applicants in writing that a consumer report will be sought, its purpose, what it may include, and the applicant's right to receive a copy. In California, employers must also provide additional details like the agency name and contact information from which the report is being sought.

1. How Employers Can Avoid FCRA
Fines When Investigating Job
Applicants
John S Poulos, Sacramento

2. Introduction
• A licensed attorney, John S. Poulos of Sacramento, California, is a
partner at Lewis Brisbois Bisgaard & Smith LLP Attorneys. Focused
on commercial law, John S. Poulos of Sacramento advises
commercial clients on federal law compliance.
Being aware of The Fair Credit Reporting Act’s (FCRA) rules can
save employers from hefty noncompliance fines. A federal law
regulating how consumer reporting agencies (CRAs) deal with
people’s personal information, the FCRA was enacted to ensure
consumer information is kept private and when revealed, it’s fair
and accurate.
The law requires an employer seeking consumer information on
employees or potential employees to notify them and get their
consent before seeking such information.

3. Fair Credit Reporting Act
• Consumer information can be in the form of consumer reports or
investigative consumer reports showing a person’s credit worthiness, credit
capacity, mode of living, personal characteristics, general reputation, and
eligibility for employment.
To comply with the FCRA, an employer seeking such private information
should notify an employee or potential employee in writing that a consumer
report will be sought, the purpose of the report, that the report may include
information on the person’s character or general reputation, and that he or
she has a right to receive a copy of the report.
In California, in addition to the above stipulations, state laws require an
employer to inform an employee or potential employee of the name of the
credit reporting agency from which the information will be sought, its
contact information, its website, and the extent of the consumer
investigation. In addition, the consumer has a right to contest the report.