How To Start A Business Doing Background Checks

A good background bank check is a protective measure that allows employers to brand a fully-informed decision on a job candidate. Whether your business is hiring for an entry-level position or for a position of trust, these checks will help you identify potential problems up front every bit opposed to leaving unpleasant surprises in the hereafter.

There are several components to a practiced background check. Each of these parts provide different bits of information to help employers proceeds a meliorate understanding of who an applicant is and if there are any bug. However, yous also need to make sure that you're following legal guidelines while you investigate candidates' backgrounds as well. Go on reading for a breakdown on background checks for minor businesses.

A small business background check for a new job applicant.

How To Maintain Groundwork Bank check Compliance

In full general, background checks are regulated by the Fair Credit Reporting Act (FCRA) and the Equal Employment Opportunity Commission (EEOC). One FCRA requirement is that you notify job candidates that you will perform a background check and have them sign off on this earlier y'all can turn to a Consumer Reporting Agency (CRA) to begin whatever checks or searches.

The FCRA as well requires employers to take certain steps if they make up one's mind not to hire, promote, or retain a task candidate, also known every bit agin actions, due to data uncovered in a groundwork report. First, an employer must notify the subject of the background check. This can be done orally, in writing, or electronically. Second, an employer must provide this person with an adverse activity notice. According to the Federal Trade Commission, this notice includes:

The name, accost, and telephone number of the consumer reporting company that supplied the report
A statement that the company that supplied the study did non make the decision to accept the unfavorable action and can't requite specific reasons for it
A notice of the person's right to dispute the accuracy or completeness of any information the consumer reporting company furnished, and to become an additional free report from the company if the person asks for it within 60 days

Another important detail to note is that some history may exist too old to be picked up during a background cheque. The FCRA notes that "in most cases, a consumer reporting agency may not report negative information that is more than than seven years old."

What You Should Include In Background Checks

A comprehensive groundwork bank check should account for a variety of cherry-red flags. Modest businesses should consider including the following types of checks whenever they investigate a potential employee'southward background.

Social security validation

Tracing a social security number is a skillful place to starting time a background check. This process allows employers to complete a couple of key tasks:

Verify that a candidate's social security number is legitimate
Uncover any boosted aliases or name variations used by the candidate in the past, forth with dates of birth and addresses associated with the number

These details can assistance uncover any criminal records or other unsavory information that wouldn't normally fall under the proper name given by the candidate. Traces can be performed through the Social Security Number Verification Service.

Criminal records check

If an employee has a criminal history, you'll desire to know. There are 3 variations of criminal records checks that will provide insight on whether an applicant has been in trouble with the law.

National Criminal Tape Database (NCRD) search – The NCRD houses millions of searchable criminal records and sex offender registries, which tin can apace indicate out whatsoever red flags. While an NCRD background cheque is a good starting bespeak, these screenings may not include every jurisdiction or not offering enough detail for your needs.
Statewide criminal records check – These checks narrow down your search to a specific state, which can offer more detailed information virtually any potential felonies or misdemeanors.
County criminal records check – While county criminal groundwork checks cover the smallest geographic area, they tin can offer the greatest amount of item, including the places that an applicant with a criminal tape has lived or worked.

Employment history

Co-ordinate to CNBC, 78% of candidates either misrepresented themselves on their application or would consider lying on their resume. An employment history check tin can help you verify job titles, dates of employment, the reason someone left a job, and rehire eligibility. Employer verification can be done through a CRA and calling a candidate's references.

Motor vehicle report

This report allows employers to verify a candidate'due south driver's license verification and review driving records. According to the DMV, this data tin include:

By and current driver's license statuses including suspensions, revocations, and cancellations
Driver'south license class
Special commuter's license endorsements
Any restrictions on your license
Traffic violations, such as:

Traffic citations
Vehicular crimes
Accident reports
Driving record points
DUI convictions

This information is crucial for employers hiring a driver, although it can exist insightful for any other job candidates as well. Motor vehicle screening services can be completed by a consumer reporting agency or through your state's driver'due south license agency, which can be establish via the DMV.

U.Due south. terror watch list cheque

In addition to criminal records, background screenings tin also include a review of the U.S. terror watch list. Tertiary-party checks tin can compare candidates to various authorities watch lists, which can be important for whatever jobs where security is involved.

Drug testing

While drug testing is not technically a part of a groundwork check, it's commonly done in conjunction with pre-employment screening. In improver, past drug-related offenses tin can also surface during criminal record checks.

There isn't a single, comprehensive law that covers drug testing, so yous'll need to review your land's specific drug testing regulations for specifics on what is and isn't restricted. The American Ceremonious Liberties Marriage keeps a list of each state'southward regulations online.

How To Run A Groundwork Check

Running a background bank check is a multi-part procedure that requires some initial planning and consistent application. The following five steps will help your company lay the groundwork for pre-employment background checks.

ane. Have a background cheque policy in identify

A written background check policy makes it easier for companies to lay out guidelines for a off-white, consistent process. This policy should include the following details:

Which background checks your company will conduct
How and when the visitor will conduct these screenings
How the results of these check will be used in employment decisions
The responsibilities of the hiring managers and Hour team when it comes to the screening process

2. Choose a groundwork check partner

In that location are several professional person background check companies that provide screening services, merely not all of them are right for your business. Narrow your search to FCRA-compliant partners who tin can calibration with your concern and offer a range of screenings that will help you lot make the virtually informed hiring decision.

3. Notify candidates of the background check

Every bit mentioned above, it'southward essential to notify candidates of whatever groundwork checks. Employers must too give candidates the aforementioned agin action notice and have them sign a release form for any screenings before they begin.

iv. Permit for explanation

If a candidate's background check uncovers some information that would impact your offering of employment, requite them a gamble to articulate whatsoever mistakes or explain the situation. Employers are required to allow candidates to review their background check results and file a dispute with the screening service if they choose to become that route.

In improver, there are candidates who merely desire to exist honest and open about their past. For example, an applicant with a by misdemeanor could take learned from their mistake and be a great fit. That decision comes down to the employer, just it's important to give employees the ability to exercise their FCRA rights before you lot brand a call either fashion.

5. Brand a decision

Once yous have all the necessary information, it'due south time to make the all-time call for your company. If the candidate is the right fit, then you lot're all gear up to make an employment offering and prepare for the onboarding process.

How Long Does A Background Check Accept?

On average, a typical background check is completed in 3 to seven days. There are times when checks are delayed due to incomplete or inaccurate check request forms or release forms. However, the bulk of checks should be complete inside a week. I exception is that any FBI checks can take around 30 days, simply well-nigh jobs won't crave that blazon of timeframe.

Can A Background Check Exist Washed Before A Job Offer?

While groundwork checks are traditionally done after an employer selects a terminal candidate, at that place is no federal constabulary that prevents employers from running checks before an employment offering is made. There are certain state laws that dictate when y'all can run background checks during the hiring process, forth with which types of checks are immune. Make sure to check your local laws before if you want to test early background checks.

Protect Your Business with Proper Groundwork Checks

While we highlighted several areas that should be included in a background cheque, there are several other areas that may exist of import depending on the nature of a business organization. Financial institutions may want to run a credit report. Other companies may desire to verify an applicant's educational degrees and schoolhouse history. The answers to these inquiries are crucial, equally a bad hire can lower morale, hurt visitor productivity, and cost as much as three times the salary of the person being replaced.

Regardless of how much an employer decides to include, a thorough background cheque is a complicated process that tin pull business owners away from other important tasks. As a Professional Employer Organization, GMS has the human resources experts to manage the background cheque procedure and many other critical HR functions. Contact GMS today to talk to one of our experts about homo resource outsourcing and how it can save you fourth dimension and money.