A recent report from CBS detailed the dangers of background screening for business owners, but mostly warned candidates of the many non-compliant practice’s in use. As we have shared before, huge corporations like Whole Foods and Home Depot have paid out millions in FCRA class action lawsuits that challenge those companies background check procedures.
This report focused on two main points, that candidates have the right to know their background is being screened, and that they have the right to dispute background check results.
Whenever a company wants to run a background check on a potential hire the first step is to have the candidate fill out a form indicating they agree to submit to a background check. This is when employers usually gather relevant data like social security numbers, full names, addresses and date of birth.
It’s imperative that employers get applicant consent forms prior to running a background screening. It’s not just the consent form though. Employers must provide the summary of the applicants rights under the FCRA separate from the actual consent form.
Once the background check report comes in, employers need to tread lightly if information in the report may cause them not to hire. First, they must provide a notice to the candidate and give them give time to dispute information in the report. This process is generally known as adverse action. Candidates must have access to the report that they may want to dispute. Once adequate time has passed, employers can send the second adverse action notice which details the reasons for not being hired. This process is fixed and rigid under the FCRA guidelines and varying in any degree can leave a business owner open to lawsuits.
With HireSafe, compliance is taken care of automatically through our web portal. When you start the background check process, potential hires are sent an email with a link to fill out the applicant consent form and provide basic information that helps in screening candidates. Employers can view the status as the process progresses and view the report online once it is finished. From there, they can decide to hire or use our web portals tools to send a notice of adverse action. FCRA lawsuits are on the rise, avoid them by staying compliant with HireSafe background checks.