Which act frees employers from certain Fair Credit Reporting Act requirements when using third parties for workplace investigations?

The Fair and Accurate Credit Transactions Act (FACT Act) is the legislation that provides exemptions for employers from certain requirements of the Fair Credit Reporting Act (FCRA) when they utilize third parties to conduct workplace investigations. Specifically, the FACT Act allows employers to carry out background checks, including investigations into employee misconduct, without having to meet all FCRA requirements, such as disclosure and consent protocols, under certain circumstances.

This is significant because it enables employers to ensure a safe and compliant workplace by allowing for thorough investigations into employee behavior or potential wrongdoing without being encumbered by some of the procedural requirements that are typically necessary when obtaining consumer reports. This efficiency can lead to quicker resolution of workplace issues, ultimately benefiting both the employer and the employees involved.

The other acts listed, such as the Equal Employment Opportunity Act, Family and Medical Leave Act, and Fair Labor Standards Act, focus on different aspects of employment law, such as discrimination, leave entitlements, and wage standards, and do not address the provisions related to background checks or investigative processes set forth specifically by the FCRA and modified by the FACT Act.