Background Checks: When and How to Use Them Wisely

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Background checks are a common part of the employment process, and most candidates understand they’re going to be screened for their history. But there are various types of checks, and not all of them are necessary for every position. Running the wrong kind of background check might even put your company out of compliance with the law!

Employment background checks take information from public records and other sources to screen an individual’s history for professional and personal data. This screening ensures you’re hiring someone who is who they claim to be and doesn’t have any hidden risk that you don’t know about attached to them.

From candidate eligibility to trustworthiness, a background check “checks” the boxes. However, these screenings aren’t free, so you’ll want to know how to use them wisely. This guide explains the nuances of background check options to help you understand which type is ideal for your hiring goals.

 

Knowing Your Levels of Knowledge and Security

Background check screenings run the range from criminal history to driving records. Depending on the goal of your knowledge, you may need all, some, or only one check, and you must let the candidate know which screenings you’re running. Lack of written consent is a violation, as is using outdated information obtained from those checks.

Because you’ll need to notify the candidate of the levels of screening, it should be aligned with the job. For example, a candidate’s driving record might not be necessary for a desk job or a freelance virtual position. On the other hand, it’s common to run the full gamut of checks for federal roles or those involving close contact with children, like in education jobs.

Before you decide which background checks to run, determine what’s necessary for your company and the position. The right screenings can help enhance workplace safety, mitigate the risk of hiring someone with a criminal or unethical past, and bolster community trust. Note that some jobs fall under local, state, or federal laws that may require background checks.

Following the Laws

While you always want to ensure you’re following the laws of when background checks are required, it’s also vital to stay in compliance with when and how to administer these screenings. If you’re planning to include background checks in your hiring process, these four laws and regulations should structure your implementation:

• Fair Credit Reporting Act (FCRA): This federal law governs how employers disclose the need for a background check and obtain consent before running the screening.
• Equal Employment Opportunity Commission (EEOC): The EEOC provides guidance and recommendations for employers regarding the use of background check information, including cautioning against rejecting an individual solely based on their criminal history, unless other regulations prohibit hiring them. This organization also enforces laws against workplace discrimination and harassment.
• Title VII of the Civil Rights Act of 1964: Any background checks you run should not conflict with this law, which prohibits discrimination based on race, color, sex, national origin, and religion.
• Ban the Box Laws: Fair hiring laws exist in many counties, cities, and states in the US. Called “Ban the Box” laws, these regulations require employers to skip adding criminal history questions from their application process and govern when you can request a background check.

When you create your background check policy, it’s wise to keep updated records of the latest laws on hand. Review them regularly when you reassess your hiring policies.

Creating Consistency

Just as your employee value proposition offerings are provided consistently to cultivate a positive workplace (as discussed in this article by Obsidi®), so should your background check policy. Running screenings arbitrarily can put you at risk of a lawsuit if someone believes you singled them out based on an anti-discriminatory factor.

Instead, determine what parts of the screening are essential and use this knowledge to create a consistent policy for background checks for each position. The background check policy should be company-wide, but each job doesn’t require the same level of screening. Roles where the individual is responsible for handling finances may require a more thorough background check than those in a receptionist position, who do not have access to secure data.

Keep in mind the cost of each screening, and only run checks that align with the job, as mentioned earlier with the driving record background screening. Verify that this framework covers all federal, state, and local laws. When you choose a background check company, they should help you navigate this part of the process and provide a Summary of Rights document that you can give potential applicants before collecting their background check information.

Acting on the Results

Running the background check is one part of the process; now, it’s time to act on the information you’ve obtained. If the screening results in a negative decision to hire, the next steps you take must be in line with the FCRA’s adverse action process.

In summary, you’ll send a pre-adverse action notice that tells the candidate you’re evaluating their results and could choose not to hire them. The copy of their report must be provided at that time, along with their summary of rights. Give the candidate 3-5 days to respond and dispute the information or provide context. Consider using EEOC guidance to determine whether to offer a more detailed assessment that shows candidate growth.

If you choose not to hire the person based on their results, issue a final adverse action notice, which includes your reason not to hire them, along with information about their right to dispute the decision.

Conclusion

With so many laws and regulations guiding the background check review, it’s crucial that you have a policy in place that keeps your company safe. Follow these tips from interview to hiring (or not hiring) the individual, and you’ll reap the benefits of background screenings without the potential repercussions.