Background screening for potential new hires is an essential component of the modern recruiting process and hiring process. However, there are critical standards companies must adhere to, including those overseen by the Fair Credit Reporting Act.

Whenever a consumer report is used in making hiring decisions, employers must stay in compliance with Fair Credit Reporting Act (FCRA) parameters. Whether these searches are conducted in-house or outsourced to a third party employment background screening company or consumer reporting agency, the process must be done legally.

The most common types of employment background checks (also referred to as “consumer reports”) are criminal records checks and credit reports. There are specific steps to follow before conducting this type of background check or taking an “adverse” action as a result of the information gathered through the report.

The Fair Credit Reporting Act includes the following important items:

Disclosure

The applicant must be informed about the background check and that decisions related to their application for employment will be made based upon its results. This permission must be obtained using a stand-alone document, and not as a section on the job application.

Certification

If outsourcing the credit or criminal background checks to a third party, businesses must certify that permission from the applicant was obtained. Notification of compliance must include:

• The candidate or employee was informed that a check would be conducted.
• Permission was granted by this party.
• The employer adhered to all Fair Credit Reporting Act requirements.
• The information will not be misused or directed in ways that discriminate against the applicant or worker.
• All state and federal laws will be adhered to in every step of the process.

Before Employers Take Adverse Action

An “adverse action” refers to the rejection of a job application, giving a demotion, denying a promotion, terminating a worker, or any other action that detracts from an individual’s employment status. Before doing so, employers must:

• Provide the affected party with a notice that includes a copy of the background check report.
• Provide the document “A Summary of Your Rights Under the Fair Credit Reporting Act.”
• Providing these documents allows the applicant or worker to review the background check report and let employers know if there are any errors on it.

After An Adverse Action Is Taken

Employers who implement an adverse action following the steps above must also let the individual know this action will be taken. This notice can be given in writing, orally or electronically. An adverse action notice informs the affected parties about their rights and allows them to correct inaccurate information. This notice should include:

• Name, address, and phone number of the agency that supplied the report.
• Verification that the agency supplying the report did not recommend any unfavorable action.
• Notice that the recipient has a right under the Fair Credit Reporting Act to dispute the report findings and receive an additional free report by request within 60 days.

Pre-employment screening and employment background checks are a vital part of successful recruiting and hiring. Employers should be aware of these key elements of the Fair Credit Reporting Act to ensure they conduct these processes in full compliance with the law.

 Disclaimer Statement: All information presented is never intended as legal advice and is for information purposes only.

For most companies, employees are their most precious and valuable resource. Finding and connecting with the best workers available in the talent pool is an ongoing concern.  Hiring managers should keep an eye out for these 6 background screening red flags to avoid poor hiring decisions and problem employees.

Here are some of the most telling background screening red flags to look for when screening potential new hires:

1. Erratic Work History

Gaps and inconsistencies in work history is often a major background screening red flag and should not be taken lightly. Past behavior is usually a predictor of future behavior. As an employer it is important to pay attention to the entries on applicant resumes. Multiple career changes and being fired from one or more jobs may be items of concern.

2. Lack of Eye Contact, Poor Body Language During the Interview

Not engaging or being evasive during the interview can display some background screening red flags and indicate confidence problems or dishonesty. Both issues can make for a problematic employee that drains resources and lowers company morale. Rambling during the interview questions, arriving unprepared, using slang, being too boastful about past accomplishments and having an unkempt appearance are also interview red flags.

3. Gossiping Or Speaking Negatively of Former Employers

Making disparaging remarks about former employers may raise some background screening red flags and is a potential sign that the candidate lacks respect and loyalty to those who have given them opportunities in the past. While in some cases their assessment may be valid, it is unprofessional to “vent” about former bosses or colleagues during the interview or employment screening process.

4. Making Demands

If an applicant attempts to add conditions to their employment right out of the gate, this is a definite background screening red flag. As a new hire, they are subject to the terms set by the employer and should understand that they must prove themselves before additional benefits are added.

5. Giving Clipped Answers and Not Asking Questions

At the other end of the spectrum are employees who give short answers to interview questions and don’t share much of themselves. This could indicate deception. Those who do not have questions during or at the end of the interview are likely not very engaged with the company and may not be ideal choices as staff members. Not asking questions can indicate a lack of ambition or lack of understanding of their potential role in the company.

6. Background Check Problems

Checking into an applicant’s background and avoiding background screening red flags involves verifying resume items, talking with employers and listed references, and conducting a pre-employment background search and other background checks. While some of these items can be addressed in-house, employers should strongly consider using a professional employment screening service to take care of criminal and financial background screening. This will help to ensure this screening is conducted thoroughly and in compliance with state and national laws.

The recruiting, interviewing, screening and onboarding process is crucial to the success of all businesses with employees. Hiring managers should keep an eye out for these six background screening red flags to avoid poor hiring decisions and problem employees down the road.

Source: https://hiring.monster.com/hr/hr-best-practices/small-business/conducting-an-interview/employer-interviewing-skills.aspx

Disclaimer Statement: All information presented is never intended as legal advice and is for information purposes only.