Fair Credit Reporting Act

The Fair Credit Reporting Act requires that employers obtain permission from an employee before the employer hires a third party to conduct a background check on the employee, but it does not require the employer to get the employee’s permission if the employer is going to conduct the background investigation. Why does the employer need the employee’s permission to hire someone to conduct the background investigation but not need that permission if the employer conducts the investigation? Whose rights are being protected by the Fair Credit Reporting Act?


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