The Keys to Managing Compliance

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Life has plenty of rules, and background screening is no exception. It has its own share of rules and guidelines, local, state, and federal. Keeping tabs on all those rules can get complicated, but for a business today, compliance in the area of background screening is critical.

Complying with the Fair Credit Reporting Act (FCRA) and the Equal Employment Opportunity Commission (EEOC) Guidance, along with other local regulations and state laws can create a long to-do list for companies. And missing any can mean a major legal risk.

So, what are some key factors to remember when it comes to compliance?

Start off on the right foot. When it comes to pre-employment screening, don’t forget that FCRA rules and certain state equivalent statutes rules start before the background check does. Potential new hires must be given appropriate disclosures and sign an authorization form before any screening can start.

If you decide not to hire that candidate based on their screening results, be sure to follow the correct “no hire” process. At minimum, you need to provide them with a summary of their rights as prescribed by the CFPB, a copy of the screening report, and give them a reasonable amount of time to dispute any errors in the report.

Don’t forget: other local regulations and state laws may apply, too.

Build a strong foundation. Staying on top of ever-changing laws can be tricky, but forming a company policy connected to screening is a good foundation. Having a set policy that complies with the law and using it to guide screening decisions can make a big difference.

That policy can also help identify which type of screening applies to each position. One critical piece: not cherry-picking where to apply that policy, but applying it consistently and uniformly.

Skipping any screening rule is a big risk, but so is having a screening company who doesn’t make compliance a top priority. Looking for a company that offers state-of-the-art screening services plus compliance support backed by decades of industry experience? Contact ClearStar today.

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.