The Family and Medical Leave Act (FMLA) is a federal statute that mandates firms with 50 or more workers to offer qualified employees up to 12 weeks of unpaid, job-protected leave for family and medical reasons. These reasons may include the birth or adoption of a child, the care of a very ill family member, or the employee's own significant medical condition.
Example
An qualified employee may use FMLA leave to care for their spouse, who has been diagnosed with a significant medical condition.
The Fair Credit Reporting Act (FCRA) is a federal legislation in the United States that governs the collection, disclosure, and use of consumer credit information. It attempts to preserve individuals' privacy rights while also ensuring the truth and fairness of credit reporting. The FCRA applies to both credit reporting agencies and businesses that use consumer credit information for a variety of purposes, including employment, loan approval, and insurance underwriting. According to the FCRA, consumers have the right to view their credit reports, contest erroneous or missing information, and be notified when adverse actions are made based on their credit reports. It also requires credit reporting organizations to follow specific processes for managing and reporting consumer credit information. Furthermore, the legislation compels companies to get people' agreement before reviewing their credit records for employment or other legal reasons. Compliance with the FCRA is critical for businesses to ensure they meet regulatory obligations and preserve consumer rights. Employers, in particular, must follow FCRA regulations when using consumer credit reports for employment background checks or hiring decisions.
Example
Assume your organization is looking for a position that requires handling sensitive financial information. As part of the pre-employment screening process, you decide to do a background check on the candidates, which includes evaluating their credit histories. To comply with the FCRA, you must notify applicants of the background check, acquire their written authorization, and provide them with a copy of their credit report if unfavorable actions are taken based on the report. Assume a candidate's credit record indicates a history of late payments and excessive debt levels. Based on this information, you decide not to forward with their job application.The FCRA requires you to present the candidate with an adverse action notification alerting them that their credit report affected the decision and offering information on how they may dispute the accuracy of the report. By following the FCRA's rules, your organization maintains openness, fairness, and compliance when using consumer credit information for employment reasons.
