Fair Credit Reporting Act: Unintended employment consequences of a consumer protection law

The application of a Federal Trade Commission (FTC) opinion letter regarding the interpretation of the Fair Credit Reporting Act (FCRA) to investigations of employee misconduct in the workplace has caused consequences never considered or intended 1, Congress when it passed the FCRA. The FTC interpretation significantly burdens the ability of employers to use outside entities to conduct timely and effective investigations into allegations of discrimination and other employee misconduct. Recently, bipartisan legislation was introduced, which is in the interest of both employers and employees. to amend the FCRA to address the problem raised 41 the FTC opinion letter. This article examines the FTC opinion letter. the implications of its conclusions, and the legislation designed to address its serious unintended consequences for the enforcement of the civil rights and other workplace laws.