When a job offer is extended, one of the most common final steps is a background check, and the human resources department is generally responsible for overseeing this process. Companies conduct these screenings as a fundamental part of risk management to help ensure a safe, compliant, and productive workplace. HR manages the flow of data and the adherence to regulations that govern how this sensitive information is handled. These screenings help employers make informed decisions by validating the information provided on an application and resume.
HR’s Role in Managing Background Screening
The core function of human resources concerning background checks is strategic ownership and administration, not the actual investigation itself. HR teams seldom perform the complex task of searching through court records or verifying transcripts directly. Instead, they partner with specialized third-party organizations known as Consumer Reporting Agencies (CRAs) to conduct the research.
HR’s operational duties begin with vendor selection, choosing a CRA that maintains high standards of data accuracy and regulatory compliance. They ensure that all candidates receive the proper disclosures and sign the necessary consent forms before any search is initiated. This formalizes the candidate’s agreement to the screening.
Once the CRA delivers the final report, HR staff review the findings against the company’s hiring criteria and the requirements of the specific job role. This review requires balancing the company’s needs with the candidate’s rights, ensuring decisions are made consistently and without unlawful bias. HR maintains control over the integrity of the data and the fairness of the overall screening program.
Components of a Standard Employment Background Check
Criminal History Records
The search for criminal history is one of the most common elements included in an employment screening. This check typically covers felony and misdemeanor convictions, generally spanning the last seven years, though the scope can vary significantly by state and jurisdiction. Employers look for patterns of behavior or specific offenses that may directly relate to the duties or security requirements of the position being offered. The information is typically sourced from county, state, and federal court records.
Education Verification
Confirming a candidate’s educational claims validates the foundational qualifications for a role. HR utilizes CRAs to contact educational institutions directly to verify details such as attendance dates and the specific degree or certification earned. This process confirms that the academic credentials listed on a resume are accurate, guarding against misrepresentation. Verification often checks for the institution’s accreditation status to ensure the degree holds recognized value.
Employment History Verification
This verification involves contacting previous employers. The primary focus is typically on verifying the start and end dates of employment and the job titles held. While some employers may seek information about the candidate’s reason for separation, many former employers limit their disclosures strictly to dates and titles to reduce their liability. This process ensures the timeline of a candidate’s career history is truthful and consistent with their application.
Driving Records
A motor vehicle record (MVR) check is not a universal requirement but is generally reserved for positions that involve operating a company vehicle or driving for business purposes. The MVR report provides details on the status of the driver’s license, including any violations, accidents, or suspensions recorded over a specified period. Employers use this information to assess the risk associated with insuring the employee and to ensure compliance with transportation safety standards.
Credit Reports
Using a credit report for employment screening is highly regulated and usually restricted to positions involving financial responsibility, access to large sums of money, or high-level executive roles. Unlike consumer credit reports, employment-related reports do not show the candidate’s credit score, but they detail payment history, bankruptcies, and outstanding debts. Separate, explicit consent from the candidate is required for this specific check due to the sensitive nature of the financial data involved.
The Legal Requirements for Conducting Background Checks
The entire framework for conducting employment background checks is governed by the federal Fair Credit Reporting Act (FCRA), which dictates the procedures employers must follow. The FCRA promotes the accuracy, fairness, and privacy of information contained in the files of consumer reporting agencies. This law is the primary legal guide for human resources professionals managing the screening process.
Before any background check can be initiated, the FCRA mandates that an employer must provide the candidate with a clear written disclosure. This document must state that a background report may be obtained and must be separate from the employment application itself. The candidate must then provide explicit written authorization before the employer can start the search.
The FCRA establishes the official definition of a Consumer Reporting Agency (CRA), which is any third-party entity that compiles or evaluates consumer information for the purpose of furnishing consumer reports to third parties. HR must ensure that vendors adhere to high standards of data integrity. The act grants applicants the right to disclosure and a process to challenge any information they believe is inaccurate.
The CRA must provide the candidate with a “Summary of Your Rights Under the FCRA” to ensure they understand how to dispute findings. While the FCRA sets the national standard, many states have enacted their own, often more restrictive, laws governing lookback periods and record use. Compliance requires HR to navigate both the federal framework and specific state regulations.
Understanding the Background Check Process and Timeline
The background check process is typically initiated only after a company extends a conditional offer of employment to a candidate. This conditional status means the job is theirs, pending successful completion of the screening. Once the offer is accepted, the candidate completes the required disclosure and authorization forms, formally permitting HR to proceed with the investigation.
HR then transmits the necessary candidate information to the chosen Consumer Reporting Agency (CRA), launching the search. The timeline for completion can vary significantly, ranging from two to three days to more than two weeks. This duration is often influenced by factors outside of HR’s direct control, such as the responsiveness of county courts and the need for manual verification.
Checks involving multiple jurisdictions, such as several states or international locations, naturally take longer. Once all components are complete, the CRA compiles the data into a final report and securely delivers it back to the HR department for review.
Navigating Adverse Action Decisions
When the results of a background check lead HR to consider revoking a conditional job offer, they must follow a specific, two-step adverse action procedure mandated by the FCRA. This legal framework is designed to protect the candidate’s right to fairness and due process before a final decision is made. HR cannot simply reject a candidate immediately upon receiving a negative report.
The first step is issuing a Pre-Adverse Action Notice, which informs the applicant that the company is considering taking negative action based on the background report. This notice must include a copy of the actual report and a copy of the “Summary of Your Rights Under the FCRA.” This allows the candidate five to ten business days to review the findings and dispute any inaccuracies with the CRA.
If the candidate does not dispute the information, or if the dispute does not resolve the employer’s concerns, HR proceeds to the second step. This involves sending a Final Adverse Action Notice, officially notifying the applicant that the job offer is being withdrawn. This final notice must include the name, address, and phone number of the CRA, along with a statement that the CRA did not make the decision to deny employment.