Companies need to hire employees for many different reasons. Regardless of the reason, every employer wants to gather enough information about the candidates in order to make a sound decision. That’s why employee background checks were invented. Generally speaking, a background check of this kind is described as a review of an individual’s criminal, commercial and financial records. In many situations, the FCRA (Fair Credit Reporting Act) is used as a basic element of background checks.
How to perform a background check on an employee is a common question these days because more and more employers want to stay on the safe side by conducting appropriate background checks.
Conducting Employee Background Check: A Basic Guide
It is highly recommended to use background checks that are FCRA compliant. The FCRA has strict regulations about what employers can do and what they must avoid when conducting a background check. This is especially true when it comes to credit information. The act is here to guarantee the rights of employees and to help employers conduct a background check without the fear of legal consequences.
Almost every background check is managed by the FCRA, but there are some laws that have effect on these checks too. It all depends on the region and state where they are performed. For instance, it is legal to use criminal and financial background checks for any kind of employee in some states, but in other states, you can do this only for certain types of employees.
Another thing that is very important during this process is to create a consistent and reliable policy regarding the way in which these background checks are conducted. In other words, employers must use the same checks for every employee. Additionally, candidates must get an opportunity to fix their mistakes or any kind of misunderstanding related to the background checks. Finally, these checks must be used on every candidate and the main purpose of these checks is to get the facts. Don’t consider this activity to be a formality.
What is included in an employee background check?
If you want to make sure that this check is performed in the right way, you must know what is included in an employee background check. The list of things that employees should share is relatively long.
First of all, the background check usually includes criminal records check. This is especially important for those looking for a job position that requires a high level of trust and security job positions. There is also a social security validation which confirms the social security number of the candidate. Additionally, the background check includes address history check, sex offender registry check, and US terror watch list check.
FCRA compliant background checks can include more background screening options. Some of these options include driving records, students transcripts, worker’s compensation claims, professional license records, state license records, military service records and credit reports.
Employers must comply with FCRA rules because they can get sued. Employees should get familiar with the same rules in order to protect their rights.