The Fair Credit Reporting Act (FCRA) is a federal law that governs how companies order and review information in consumer reports, including background checks. When running a background check as part of the hiring process, employers must disclose their intent to conduct a background check and receive consent from the candidate before proceeding. The FCRA requires employers to provide certain protections to candidates, such as disclosure of what information is contained in their background check, the right to dispute inaccurate or incomplete information, and notification if the information used negatively impacts employment. Employers must also initiate an adverse action process if they may not move forward with a candidate based on information in their background check, including informing the candidate of their rights under the FCRA and giving them an opportunity to correct inaccuracies.