How To Conduct Background Check
Before a background check is used, companies must provide written disclosure of intent to perform a background check as a condition of employment. Employers must also get permission from the applicant in the form of a written consent form. During this process, it is best to discuss the applicant’s rights under the Fair Credit Reporting Act.
If a criminal record is found that directly affects the way an applicant can carry out the requirement of a job, it is important that the job candidate is given not only notice, but also ample time to dispute the result of the background check. Denial of employment based on information obtained from a background check is known as Adverse Action.
Before rejecting an applicant as a result of information gained from the consumer report (background check), the applicant must send the applicant a pre-adverse action letter. The notice can be given orally (in person), electronically, or by mail. We recommend the latter two options.
The pre-adverse action letter must include the following:
- The name, address, and phone number of the Credit Reporting Agency (CRA)
- The fact that the CRA did not make the adverse decision and cannot give reasons for the decision
- His/her right to a free copy of the consumer report
- His/her right to contact the CRA to dispute the accuracy of the report
- Their Summary of Rights , including any State specific requirements
After giving the applicant 5 days to dispute the report , you may take adverse action against the applicant. Employers must then notify the applicant of their final decision to deny employment based upon their consumer report with an Adverse Action Letter .
This can be given orally (in person), electronically, or by mail. We recommend using the latter two methods so that you not only have proof that you took the proper steps, but also the date these actions took place. The notice must contain all of the notification provisions mentioned under pre-adverse action .