Employee Background Checks
This playbook outlines the step-by-step process and best practices for conducting lawful background checks on prospective employees. It ensures compliance with legal requirements and the fair treatment of candidates.
Step 1: Policy Creation
Develop a standard company policy for background checks. This policy should comply with all applicable laws such as the Fair Credit Reporting Act (FCRA), Equal Employment Opportunity Commission (EEOC) guidelines, and relevant state laws. It should be consistently applied to all candidates to ensure fairness.
Step 2: Candidate Notification
Notify candidates in writing that a background check will be conducted as part of the hiring process. This notification must be clear, conspicuous, and provided in a document that consists solely of the disclosure.
Step 3: Obtain Consent
Obtain written consent from the candidate to perform the background check. Ensure that the authorization form is separate from other application documents and clearly indicates that the information obtained may affect the hiring decision.
Step 4: Select Service
Choose a reputable background check service provider. Verify that they are compliant with all relevant laws and capable of providing accurate, up-to-date information that is pertinent to the position in question.
Step 5: Conduct Check
Perform the actual background check, focusing on areas relevant to the candidate’s potential job duties. This may include criminal history, credit history, employment verification, and education verification, among other checks.
Step 6: Evaluate Results
Evaluate the background check results carefully. Make sure to align any findings with the requirements of the job and consider the nature, recency, and relevance of any adverse information discovered.
Step 7: Decision Notification
If the background check results in a decision not to hire the candidate, provide a pre-adverse action disclosure that includes a copy of the report and an explanation of the candidate’s rights under the FCRA.
Step 8: Adverse Action
After giving the candidate time to review and dispute the report, if the hiring decision remains unaffected, send an adverse action notice, which explains the final decision not to hire, the reasons behind it, and information on the reporting agency.
General Notes
Record Keeping
Maintain all records of background checks and decisions for a minimum period as required by law, usually at least five years.
Privacy Protection
Safeguard candidates' information throughout the process. Dispose of any background check information securely, in a manner that protects against unauthorized access or use.
Continuous Updating
Regularly update the background check policy to reflect changes in laws and the company's practices, ensuring ongoing compliance and relevance.