What does the Fair Credit Reporting Act (FCRA)have to do with an employer’s evaluation of an applicant?

Generally speaking, the Fair Credit Reporting Act applies when an employer uses a “consumer reporting agency” to obtain a “consumer report” (includes driving records and criminal history). Under the Act, a consumer report is any “written, oral or other communication” from a “consumer reporting agency” bearing on the employee’s: (1) creditworthiness; (2) standing; (3) credit capacity; (4) mode of living; (5) character; (6) reputation; (7) personal characteristics.

An employer must consider whether the information it requests is a “consumer report” from a “consumer reporting agency.” A California court determined that LinkedIn was not a consumer reporting agency and, therefore, the employer was not required to follow the FCRA procedures when considering information obtained from LinkedIn about the applicant.

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The information herein is not legal advice. The information is in the form of legal education and is intended to provide general information about the matter discussed.  The above is not, nor is it intended to be, legal advice and does not create an attorney/client relationship.