In an attempt to avoid unpleasant surprises in the background of what may seem like a viable candidate, some businesses opt to regularly conduct background checks. Forty-six percent of credential and reference verifications uncovered a discrepancy between details that the candidate provided and what the background check revealed. If you don’t screen candidates, you could put your business at risk by hiring employees who aren’t as reliable as they may initially appear.
However, you also need to know when it’s appropriate to conduct a background check to avoid potential legal repercussions on your end. While it’s technically possible to run background checks on anyone without probable cause, there may be some legal ramifications of running them without the person’s consent. Without a person’s explicit consent, you won’t be in compliance with the law, specifically the Fair Credit Reporting Act (FCRA). You may also run into legal trouble if you don’t perform background checks the right way for every new hire.
If you want to learn more about how to conduct a background check legally and properly, the following are some best practices to consider.
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Consistency is Key
Every business should have a background check process in place to make sure that they’re hiring the right person for their business. Background checks can reveal a prospective employee’s education, financial history, work history, and criminal background, which can indicate whether a person is truly worth hiring.
When running background checks, it’s important to be consistent. In other words, you need to follow the same process for all employees. Singling out employees for background checks could leave you vulnerable to lawsuits, which could be costly and damaging for your business and reputation.
For example, your business might normally conduct a background check on candidates after making an offer, but in the case of one individual, you choose to conduct the check before making them an offer. If the candidate becomes aware of this pre-offer background check, they may perceive it as discrimination. While different job titles may require varying levels of checks, make sure there’s uniformity in your processes for all employees.
Certain companies have been accused and sued for discrimination because of inconsistent and unfair background checks. Don’t let yours become one of them.
Be Compliant
It’s also important to maintain compliance with background checks by ensuring that they adhere to federal FCRA guidelines, along with state and local laws. The laws around background checks can vary from state to state, so it’s important to determine what the laws are wherever your business is located.
Some ways to make sure your business is consistently compliant include:
- Obtaining written consent from employees or candidates to run background checks
- Make sure that background checks are relevant to the job and specific title
- Using the same process for all employees
- Never asking about an applicant’s medical or genetic details before hiring
- Notifying applicants and new hires about any hiring decisions based on the results of a background check
Avoid Costly Mistakes
Generally, you should try to avoid any potentially damaging mistakes that could put your business and employees at risk. You can work to adhere to all adverse action procedures that maintain consistency across the background check process. At the same time, you can maintain compliance by continuing to adhere to the FCRA and other state and local laws that pertain to your location.
In addition, consider working with a PEO if you need additional expertise and guidance. PEOs can serve as a second pair of eyes that review your processes and make sure that you remain both compliant and consistent with your background check practices. For even more assistance with keeping your background checks legal, you can also consult with an attorney who has knowledge of background check review processes. With the right experts and PEO partners by your side, you can avoid any issues that might otherwise leave your business vulnerable to lawsuits or other legal consequences.
Partner with a PEO for Consistently Compliant Background Checks
If your business uses background check processes during the overall hiring process, it’s important to run them properly and legally. To remain compliant and avoid any problems that can come from improperly conducted background checks, consider working with a PEO that can review your processes. A reliable PEO will be able to work with you to implement proper background check processes and work within the confines of the law. The right partner will give you peace of mind in knowing that your processes are effective without violating the FCRA or any other rules and regulations.
