What is meant by background check?

The adverse action process is required for any action taken that denies an individual employment, credit, insurance, etc. based on information obtained through a consumer report. This three-step process complies with federal laws to protect applicants from discrimination. Although it’s the law, many companies still fail to send adverse action notices, subjecting them to potential lawsuits. Employers must abide by the guidelines set forth by the Fair Credit Reporting Act (FCRA) which requires the employer to provide a standalone disclosure informing the applicant that a consumer report may be obtained with written consent. The employer must also provide a copy of the pre-adverse notice, background report, and summary of rights to the applicant prior to an adverse action decision. If any adverse information appears on their background check, then a pre-adverse notice is used to inform the employee that something has returned which may or may not affect their hiring decision. This gives the employee an opportunity to file a dispute prior to receiving a final adverse action notice. An adverse action notice must be sent only if the employer denies the applicant employment based on the information from the background check.

Since each background check can be customized to meet the needs of the employer, job position, and state laws, questions can vary according to what is included in the check. For example, if the employer chose to include an education verification, then the candidate would be asked questions regarding what school they attended, the years they attended, when they graduated, what degrees (if any) they acquired, etc.

Background screens (or checks) are a way for employers to verify information about an applicant and/or current employee, getting a comprehensive understanding of who they are to ensure they make a safe hire. For many employers, a background screen is usually conducted as a simple pre-employment process, but depending on the industry and position they can become quite complex. Background screens can typically include employment/education verification, driving records, credit reports, or even social media in some cases. When combining products to create a custom program, employers can better maintain compliance and meet industry standards.