I asked the author what they meant, and then laid out what the facts are. It's simple:
* Candidates are entitled to copies of background/credit reports used to make adverse decisions against them, under the FCRA.
* Candidates are only entitled to the specific document, collected under the FCRA, that was used to make the adverse decision.
* Reference checks --- calls to previous employers and coworkers --- are not governed by the FCRA or, as far as I know, any other law. Candidates are absolutely not entitled to any information about reference checks, but a candidate that "flunks" a reference check might be told so when they're refused a job. Or they might not.
* No law entitles hiring managers to any documentation whatsoever.
Only the last point I made was one of opinion, but I think it's a widely held and pretty common sense opinion:
It is terribly inappropriate for HR to share background check documentation with hiring managers. Companies that employ background checks should have simple, static rules, like "no previously undisclosed felonies" or "no violations relevant to the job", that are evaluated by HR.
It's already a grave violation of candidate privacy to do these kinds of checks in the first place (which is why they have to collect special permission from candidates to do them at all!). It's negligent to then pass that information around the org chart to help others in the company read tea leaves from them.
My opinion here is informed by experience working with companies that do background checks, but I wouldn't be surprised to learn that there are fucked up companies where HR passes copies of credit and background reports to other employees.