Incorporating Legal Compliance in Developing Background Screening Policies
Why This Story Matters:
Organizations conducting background checks on job candidates should have a documented background screening policy that incorporates legal compliance to keep a screening program fair, consistent, and transparent. In addition, a uniform policy can make the screening processes more comprehensive and support compliance with applicable regulations.
PLEASE NOTE: The information listed below is only an example of potential questions and issues with a background screening policy. It is not by any means a definitive list. ClearStar does not provide or offer legal services or legal advice of any kind or nature. Any information contained in this blog or on the ClearStar website is for educational purposes only.
What Are Background Screening Policies?
Background screening policies should outline an organization’s procedure for conducting background checks on job candidates and any re-screening of employees. Typically, these policies are documented in writing and should be reviewed by legal counsel to ensure they comply with all relevant regulations for a particular job, industry, locality, state, and country.
A background screening policy can help an organization conduct thorough employment background screenings that may reveal information on a job candidate’s job history, educational accomplishments, criminal record, driving record, professional licenses, and other potentially relevant information for Human Resources, hiring managers, and decision-makers.
The background screening policy may include working with a third-party consumer reporting agency (CRA) to conduct background checks in accordance with the Fair Credit Reporting Act (FCRA), a federal law regulating background checks in the United States that covers several areas including permissible purposes, disclosures to consumers, and adverse action.
What Should Be Included In Background Screening Policies?
A background screening policy can clearly state the reasons why an organization is conducting background checks on job applicants, the scope of these screenings, the procedures to follow during the screenings, and a schedule for reviewing and possibly updating the policy. Generally speaking, a background screening policy should cover these basic areas:
- Purpose: A background screening policy communicates why background checks of job candidates are conducted and documenting this process helps maintain fair hiring practices. The screening of candidates is done for several reasons including to meet industry standards, comply with government requirements, and verify experience and qualifications.
- Scope: A background screening policy can offer a consistent scope for screenings that identifies which jobs require background checks, what types of checks job candidates need, and if the organization will conduct background screening on all candidates or only for selected positions. The answers may be different depending on the job’s responsibilities.
- Procedure: A background screening policy should create a standard operating procedure (SOP) for Human Resources and hiring managers to follow that includes all relevant industry, local, state, and federal compliance requirements. The policy should also include a plan for keeping decision-makers updated on any changing laws and policies.
- Disclosure and Consent: A background screening policy should outline disclosure and consent forms to notify job candidates that an organization is planning to conduct screening so they can obtain written consent to do the screening. The policy may also include a statement indicating that a background check is required as a condition of employment.
- Criminal Records: A background screening policy should avoid “blanket” statements automatically disqualifying job candidates with criminal records. The Equal Employment Opportunity Commission (EEOC) offers guidelines on considering criminal records during screening that encourage employers to make an “individualized assessment” of candidates.
- Disposal: A background screening policy should provide for the secure disposal of sensitive information. The Federal Trade Commission (FTC) recommends that when an organization is ready to dispose of personal identifying information (PII) and other sensitive data used during screening, that organization should follow FTC guidelines for disposal.
- Updates: A background screening policy should be updated regularly or on an as-needed basis. An organization should revisit a background screening policy at least once a year to make adjustments based on new laws or changing needs at the organization. Any updates to the policy should be clearly documented within the policy.
What U.S. Employers Should Know About Background Screening Policies
While some companies may devote entire departments to ensuring that background screening is properly vetted for compliance, other companies may not have an overabundance of resources to create and maintain written screening policies. Whatever the case may be, all companies that use background screening should develop some type of policy.
Organizations would be wise to seek legal counsel to review their background check policy before implementation in order to ensure all relevant rules and regulations are accounted for and clearly understood. A third-party consumer reporting agency (CRA) can also provide practical guidance to help design comprehensive and compliant policies.
What ClearStar Does to Help Employers With Background Screening Policies
ClearStar – a global consumer reporting agency (CRA) specializing in background checks, drug testing, and occupational health screening – can help employers in all industries choose from a variety of employment background screening solutions that will empower them to make informed hiring decisions. These background screening services from ClearStar include:
- Criminal Record Searches at Federal, State, and County Levels
- Sex Offender Registry Searches
- Employment/Education Verifications
- Licenses and Credentialing
- Personal Reference Checks
- Motor Vehicle Record (MVR) Searches
- Social Media Screening
- Civil Record Searches
- Employment Credit Reports
- Employee Monitoring
- Contractor Screening
- Tenant Screening
- Global Searches in 230+ Countries
ClearStar’s numerous certifications help ensure the privacy, security, and confidentiality of all consumer data used during the background screening process. Thousands of employers in industries all over the world trust ClearStar to manage the background screening of their workforces. To learn more about background screening, contact ClearStar.
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At ClearStar, we are committed to your success. An important part of your employment screening program involves compliance with various laws and regulations, which is why we are providing information regarding screening requirements in certain countries, region, etc. While we are happy to provide you with this information, it is your responsibility to comply with applicable laws and to understand how such information pertains to your employment screening program. The foregoing information is not offered as legal advice but is instead offered for informational purposes. ClearStar is not a law firm and does not offer legal advice and this communication does not form an attorney client relationship. The foregoing information is therefore not intended as a substitute for the legal advice of a lawyer knowledgeable of the user’s individual circumstances or to provide legal advice. ClearStar makes no assurances regarding the accuracy, completeness, or utility of the information contained in this publication. Legislative, regulatory and case law developments regularly impact on general research and this area is evolving rapidly. ClearStar expressly disclaim any warranties or responsibility or damages associated with or arising out of the information provided herein.
