Employer Background Checks: Your Rights Under the FCRA

What an employer must tell you before and after a background report is used against you.

By Siddharth ShankarUpdated October 24, 2026

Many employers check a job candidate’s history. The law sets rules for how they do it. This guide follows the FTC’s consumer guidance on background checks.

What the law requires before a check

When an employer asks a consumer reporting company for a background report, the Fair Credit Reporting Act applies. According to the FTC:

• the employer must tell you in writing that it may use the report to make an employment decision, in a stand-alone document with no other information in it;
• the employer must get your written permission to run the report;
• the company that provides the report must have a permissible purpose and certify to its own obligations.

If you refuse to give permission, an employer may decide not to hire you, so think about what you want to do before you sign.

What happens before an adverse decision

If the employer plans to take an adverse action, such as not hiring, not promoting, or firing you, based on the report, it must first:

• give you a copy of the report;
• give you a copy of the “Summary of Your Rights Under the Fair Credit Reporting Act”.

This gives you a chance to explain or correct the information before a final decision. After a final adverse decision, the employer must say so and tell you how to contact the reporting company.

Your rights with the reporting company

• A free extra copy. If you ask within 60 days of the adverse action, the reporting company must give you a free copy of the report.
• Dispute errors. You can dispute inaccurate or incomplete information with the reporting company, which must investigate.
• Report problems. The FTC asks you to report violations at ReportFraud.ftc.gov.

How errors get into reports

Reports can contain mistakes: records matched to the wrong person, old entries that should have been removed, or duplicates. Common names make matches more likely to go wrong. Request your report early if you expect a check, read every line and compare it with your own records.

Check what employers can see

Beyond formal reports, employers often search the open web. Search for your own name and see what appears; our guides on searching Google for your personal information and checking your online presence before a job application explain how.

Records you may want to check yourself

• Criminal records. See how to check your own criminal record and whether police reports are public.
• Credit reports. Some checks include credit history. Learn how to get your free credit reports and how to dispute errors.

Beware of fake job offers

Scammers pose as employers and ask for personal details for a “background check”. Never send identity documents or financial details before you have verified the employer. See fake job offer red flags.

Steps to take

1. Read the disclosure carefully before you sign the permission form.
2. Ask which company will run the report.
3. Request your own report from that company if you are concerned.
4. If you get an adverse notice, ask for the report and the summary of rights, then dispute errors in writing.
5. Keep records of what you were sent and when.
6. Report violations to the FTC.

For rental applications, similar rules apply; see tenant screening reports.