Background Screening Compliance
Disclosure and Consent Forms
Each individual needs to be presented with proper disclosures and consent forms before the background check is initiated.
While the collection of federal and state consent documents is the responsibility of the employer, Checkr is pleased to maintain hosted templates of the federal and state consent documents required in the screening process on our clients’ behalf. Checkr makes appropriate changes when the various regulatory agencies make updates to their requirements.
If your company is using the Checkr-hosted authorization and disclosure, Checkr stores these documents for you.
Review and Adjudication
For those reports that contain potentially adverse information on the candidate, a decision needs to be made whether to move forward or not. Before making the decision, it is important to consider the relevance of the information contained in the report.
Specifically, three criteria can be applied:
- the nature of the crime (e.g., petty theft vs. assault and battery)
- when the crime occurred (e.g., 6 months ago vs. 6 years ago)
- the relevance of the crime to the job duties this person will be performing.
Applying consistent, job-related adjudication decisions limits the liability of an employer in its hiring decision.
Checkr makes the adjudication process simple by displaying two buttons on each report on the dashboard. For completed reports marked as consider, the client can either:
- Move forward with the candidate by clicking the green engage button, or
- Initiate the adverse action process by clicking the red adverse action button.*
*Please note that this is only guidance regarding usage of our product and should not be construed as legal advice. Please consult your legal counsel for questions or employment practices around adverse action and adjudication.
When adverse action is selected, a form letter in the way of an email is displayed on the screen. This letter, known as a “pre-adverse action notice,” will list potentially adverse information contained in the report in bullet-point format.
When the pre-adverse action letter is sent to the candidate, it will be accompanied by the candidate’s background report that Checkr performed, the “Summary of Rights Under The Fair Credit Reporting Act notice,” and any other legally required disclosures and attachments.
Once sent, the candidate has 7 days to contest or dispute any inaccuracies found on their report. If there is no dispute received within this period then a second letter, the “post-adverse action notice” will automatically be sent to the candidate, making the company’s decision final.
If there is a dispute, Checkr will open a dispute on behalf of the candidate, and Checkr is then legally obligated to conduct a reinvestigation within 30 days. The reinvestigation must consider any information provided by the candidate. The results of that reinvestigation are then sent to both the employer and the candidate.
Laws and Guidance concerning Adverse Action Requirements
FCRA Fair Credit Reporting Act falls under the Federal Trade Commission (FTC). The FCRA is a federal regulation that governs how employers and background companies conduct background checks for the purposes of employment. For the consumer (subject of the background report), the FCRA provides safeguards and rights that the company providing the background check (defined as a Consumer Reporting Agency), as well as the end user (employer/organization), must adhere to.
EEOC Equal Employment Opportunity Commission prohibits employers from making certain automatic decisions that would adversely affect the hiring decision based on criminal records and/or credit reports. New Guidance was put forth by the EEOC in April, 2012, with respect to an “individualized assessment” when considering criminal records in the hiring process. When potentially adverse information appears on a report Checkr marks the report as “consider,” which draws the attention to the section(s) of the report that contain the adverse information. This allows for individualized assessment of each report containing potentially adverse information.
To view this full article and more resources from Checkr, click here.