When Good Background Screening Plans Go Bad

No one ever plans to fail.

But even the best intentions can crater sometimes.

What makes the difference in screening? Keeping compliance at the top of your to-do list. It’s a challenge, though. Statistics say FCRA violations are the fourth most reported employment abuses.

Consider these factors when evaluating your company screening plan.

Prepare for what’s at stake
Since 2011, more than 40 major companies have paid millions to settle FCRA violations. One of the largest cases? Wells Fargo paid $12 million to candidates for bumbled background checks. Plenty of other companies stumbled into similar violations.

A collection of court records show that in recent years companies have paid over $170 million in class action suits connected with screening violations. They’ve also handed over $152 million in direct lawsuits.

The moral of this story: no one’s too big to make a mistake.

Don’t skip any steps
We can’t promise screening rules will be easy or simple. And some wonder if we need more rules to fix the issue.

But in the bulk of these cases, companies failed in similar ways.  They launched the background check before getting it OK’d by the candidate. Or they didn’t provide a written copy of a completed background check.

FCRA rules are pretty specific. Employment screening can’t happen without prior written consent from the candidate. Candidates must be provided a written disclosure when screened for employment purposes. Candidates also have a right to dispute screening results. That means any adverse action taken as a result of a background check must follow the steps outlined in the law.

Pick a partner you trust
Don’t work with a screening company willing to settle for half-hearted search results. Background checks aren’t just a collection of data. They represent a piece of personal history. Screeners should cultivate strong sources and make compliance a priority, too. Choose screeners who treat your candidates and your company fairly and respectfully.

Does your company need a professional partner to depend on? 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.