More and more employers are relying on background checks to make sound hiring decisions.  Background checks are a useful tool that can help protect an employer from costly lawsuits and also ensure safe working conditions for other employees and customers.

While there are many companies that offer background checking services, requesting background information on an employee or applicant is more complex than submitting the required information to one of these providers.  Below are some guidelines to follow when running background checks:

Comply with FCRA

The Fair Credit Reporting Act (FCRA) is the federal law that governs the acquisition and use of most background information on applicants and employees. Although it is lawful for employers to request background information on applicants and employees, they must follow several important procedures when obtaining and using information on a background check to make hiring decisions.

Job Related Information

Information that should be included in a basic background check includes Social Security Number and Date of Birth verification, multi-jurisdictional criminal record search, and sex offender records search.  Employers should not try to obtain information that would disclose national origin, disability, religion, or other protected status or private information such as medical records.  The type of background check should be relevant to the job.  For example, if an applicant is seeking a secretary position, in which the person would not be required to drive a company vehicle, that person should not be subject to a driving record check.

Be consistent

Employers should be sure to conduct background checks on a fair and equal basis to avoid claims of discrimination.  A good policy is to conduct background checks on all candidates for the same position, or the same type of position.  It is okay to make an offer of employment that is contingent upon a satisfactory background check.

Ensure confidentiality

It is very important for employers to maintain the confidentiality of all information obtained in a background check.  Anyone who will be handling or reviewing background reports should be trained on the importance of preserving confidentiality. All background check information should be kept in a confidential file and stored in a file cabinet that is locked at all times.

Before attempting to use background checks as a screening tool, employers should be sure they are following FCRA rules, have signed consent from the applicant, and are clear about which information can and cannot be used to determine if an applicant should be hired.