Protecting your future self starts with clear, informed hiring decisions, and conducting a background check is a key step in the process. A background check can reveal relevant information that may not be apparent from a resume alone. Taking time to complete this step helps ensure your business has a team you can trust and reduces the chance of unforeseen issues later.
How & When To Conduct Background Checks
A background check involves verifying a candidate’s past work experience, education, criminal records, and other aspects relevant to the job. Start by creating a background check policy that applies consistently across similar roles within the company. Your policy should specify the types of checks required for specific positions and define what constitutes an acceptable background check result. For instance, financial management roles might require a credit check, while positions that involve operating vehicles may need a driving record check.
To comply with federal and state regulations, employers should only conduct background checks after obtaining written consent from the candidate. In some states, Ban-the-Box laws restrict when a background check can be run, generally requiring that it happens after a conditional offer is made. You should also be aware of the Fair Credit Reporting Act (FCRA), which requires notifying candidates of any adverse actions based on their background check results and allowing them to respond.
Working with a reputable background check provider can simplify this process. They often offer specialized screening packages tailored to the needs of different industries, which can help ensure your hiring practices are fair and compliant.
Offering Someone a Job Before the Background Check
It’s common for employers to extend a conditional job offer to candidates before a background check is complete. Making a conditional offer helps keep the hiring process moving while providing flexibility to withdraw the offer if necessary based on the check results. When you make a conditional offer, you must communicate to the candidate that the offer depends on completing a background check that meets company standards.
If the background check returns concerning information, the FCRA requires a specific adverse action process to follow. First, employers must send a pre-adverse action notice. This notice includes a copy of the background check report and an accompanying summary of the candidate’s rights. The candidate must then be given a chance, typically five business days, to dispute or clarify the findings before the employer decides.
Establishing a conditional offer process benefits both the company and the candidate. Candidates know they’re being seriously considered for the role, and employers can maintain a fair process while ensuring that only the most suitable candidates are hired.
Taking the time to make informed hiring decisions benefits your business in the long term. Background checks help reduce risk and create a safer work environment for everyone involved.
Run Your Business With the Support of Trusted Legal Counsel
If you would like assistance developing a background check policy or guidance on best practices, contact us to schedule a consultation. We’re here to help you create a structured, compliant hiring process that supports your business goals.
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