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Glossary · Payroll & compliance

FCRA

The federal law that governs background checks prepared by outside screening companies.

Also called:Fair Credit Reporting Act

Definition

The Fair Credit Reporting Act (FCRA) is the federal law that governs consumer reports, including background checks that an outside screening company prepares for an employer. It requires a clear disclosure in a standalone document, the candidate's written authorization before the check, and a two-step notice process before any adverse decision based on the report. It also gives candidates the right to see and dispute what was reported. Many states add their own screening laws on top of the FCRA.

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This definition is general information, not legal, tax or financial advice. Rules vary by state and change over time.

Payroll & compliance

More terms on this topic.

10DLCThe registration system U.S. carriers use for business text messages sent from ordinary 10-digit phone numbers.
E-VerifyA federal online system that checks Form I-9 information against government records.
Employer of recordThe company legally responsible for a worker's pay, tax withholding and employment paperwork.
FICAFederal Social Security and Medicare payroll taxes, paid by both employer and employee.
FUTAThe federal unemployment tax employers pay on the first $7,000 of each employee's wages.
Form I-9The federal form every U.S. employer completes to verify a new hire's identity and work authorization.
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