/ Compliance & Adverse Action
FCRA basics for employers
The Fair Credit Reporting Act (FCRA) is the federal law that governs background checks. If you order reports on candidates or tenants, these are the rules that matter most.
Your core obligations
- Permissible purpose — only order reports for legitimate hiring or leasing decisions
- Disclosure — give the candidate a clear, standalone document explaining you'll run a check
- Authorization — get written consent before ordering
- Adverse action — follow the required notice process if the report affects your decision
How Ethur helps
- Disclosure and authorization are collected automatically with every invite
- Pre-adverse and adverse action notices are built into the workflow
- Reports only include FCRA-permissible information
This article is general information, not legal advice — your counsel should review your screening policy.