Can we conduct background checks on applicants?

Background checks can be a valuable tool for employers seeking to verify information and reduce hiring risk. However, conducting background checks requires compliance with federal, state, and local laws.

Before obtaining a consumer report from a third-party screening company, employers generally must provide a disclosure and obtain written authorization from the applicant. These requirements are governed by the Fair Credit Reporting Act (FCRA).

Background checks may include criminal history, employment verification, education verification, professional licenses, driving records, and other information relevant to the position. Employers should ensure screening practices are job-related and consistent across candidates.

If information obtained during a background check may lead to a negative employment decision, employers may need to follow adverse action procedures. These procedures typically involve providing notices and an opportunity for the applicant to review the information.

Many states and localities have additional restrictions regarding criminal history inquiries and the use of conviction records. Employers should review applicable laws before implementing screening programs.

Consistency is one of the most important compliance principles. Similar positions should generally receive similar screening. Selectively conducting background checks can create the appearance of unfair treatment.

Confidentiality is equally important. Background reports often contain sensitive information and should be stored securely with restricted access.

Organizations should establish written screening policies outlining which positions require background checks, what types of checks are conducted, and how results are evaluated. Clear policies help promote consistency and reduce legal risk.

When implemented correctly, background checks can help employers make informed hiring decisions while maintaining compliance with applicable regulations.