Guides on choosing, evaluating, and working with background screening providers, from the All Screeners team.
Tagged “credit-check-restrictions” · Clear filter
In a growing number of states, ordering an employment credit check for a role that doesn't qualify for an exception is the violation by itself, before the employer ever looks at the result.
ComplianceA background check policy written to the federal floor breaks state law in California, Illinois, Colorado, and New York City. Written to the strictest state, it needlessly restricts you everywhere else. Here's the two-layer structure that actually holds up: one federal-compliant baseline, plus state-specific overlays you review on a schedule.
Choosing a ProviderIf you hire in more than a few states, the vendor question that matters most isn't price. It's whether they actually adjust for each state's rules or just run one national process and hand you the risk.
ComplianceRoughly a dozen states restrict how employers can use credit history in hiring, and New York just extended its rule statewide. Here's which states get cited most often, what the restrictions usually cover, and why you shouldn't treat any list, including this one, as final.
ComplianceA credit check needs more than the FCRA disclosure you already send for every other background check. What permissible purpose actually means for a credit pull, and why the paperwork carries a layer standard checks don't.
ComplianceAn employment credit check isn't a credit score, and it isn't legal everywhere anymore. What the report actually contains, why more states are restricting it, and why you need to verify your own state's current rule before you run one.