Professional in Human Resources (PHR) Practice Exam

Question: 1 / 575

What does the Fair Credit Reporting Act (FCRA) help protect?

Employers from employee lawsuits

Employees’ rights to privacy of background information

The Fair Credit Reporting Act (FCRA) is designed to protect individuals’ rights regarding their consumer information, specifically around the use of background checks in employment. It mandates that consumer reporting agencies ensure that consumers are aware of the information being collected about them, and it requires employers to obtain consent before conducting a background check. This includes informing employees about their rights to dispute inaccurate information and ensuring their privacy is respected throughout the process.

By focusing on the privacy of background information, the FCRA aims to protect employees and job applicants from potential misuse of their private information by employers, thereby fostering a fairer hiring process.

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Employers’ rights to conduct background checks

Public access to employee records

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