Legal

At SentryLink we are often asked about the legal rules and regulations involved in beginning employee background checks. Here we attempt to explain some of the basics involved, in particular the Fair Credit Reporting Act. Disclaimer: We are not lawyers and specific situations may vary. Please consult with your attorney before implementing any screening program.

The federal rules regarding employment screening are contained in the Fair Credit Reporting Act. At a minimum, your screening program must conform to these rules. (State-specific rules may also apply, and we will be covering those in future posts.) The FCRA has two primary goals with respect to employment:

• Ensuring that people are explicitly notified, and agree to, any background checks that are done, and
• Allowing people to correct any misinformation before any decisions are made by the employer.

Job candidates must sign a release form agreeing to permit a background check before it is performed. The most common background checks are criminal record checks, credit reports, and driving records. The release form must provide “clear and conspicuous” disclosure, which is generally interpreted as requiring a separate page rather than burying it in the rest of the job application. Here is a sample background […]