Western Verify

Employment screening is a critical aspect of the hiring process, offering employers crucial insights into a candidate’s background and suitability for a role. However, this process comes with legal complexities that demand careful navigation. In this post, we’ll break down the legal requirements and restrictions surrounding employment screening, empowering employers to make informed decisions while staying compliant.

Understanding Legal Frameworks:

Fair Credit Reporting Act (FCRA):
The FCRA regulates consumer reports, including background checks, in employment. Employers must secure written consent from candidates and provide adverse action notices if decisions rely on obtained information.

Equal Employment Opportunity Commission (EEOC):
Enforcing federal laws against employment discrimination, the EEOC ensures screening practices avoid unfair impact on protected groups.

Americans with Disabilities Act (ADA):
The ADA bars non-job-related medical examinations. Pre-employment medical checks should align with job requirements.

State and Local Laws:
Beyond federal laws, employers must follow state and local regulations governing employment screening.

Key Legal Requirements for Employment Screening: 

Obtain Candidate Consent:
Ensure written consent from candidates before any background checks. Clearly communicate the check’s purpose and its implications.

Provide Clear Disclosures:
Deliver transparent and conspicuous disclosures to candidates regarding background checks in a language they comprehend.

Adverse Action Notices:
If adverse decisions stem from background checks, provide candidates with pre-adverse action notices, including report copies and FCRA rights summaries.

Individualized Assessments:
Conduct individualized assessments for adverse actions, considering factors like the seriousness of the offense, time passed, and job nature.

Legally and ethically conducted employment screening is a valuable tool for informed hiring decisions. Understanding and adhering to legal requirements empower employers to navigate the complexities with confidence. Staying vigilant, transparent communication, and fair treatment of candidates form the foundation of a compliant and effective employment screening program.

Written by Justin Leavitt

Justin is the Co-Founder and CFO of Western Verify, and spends his free time traveling with his family and trying his best to golf.