In this Complete Guide to Background Check Policies for 2023, you’ll find out how to create a background check policy that helps your team conduct complete and compliant screenings throughout your organization.
A background check policy is a set of standards that outlines your organization’s procedure for conducting background checks on job candidates and employees. These policies are typically documented in writing and reviewed by legal counsel to ensure they comply with all relevant regulations for your industry and region.
Background check policies may be shared with hiring managers or any person in your organization responsible for executing and assessing background checks. Job candidates and employees may also be given access to your background check policy to promote transparency and meet compliance requirements.
Pre-employment background screenings can verify a candidate’s work experience and professional licenses, plus get information on their criminal history, credit history, or motor vehicle records (MVRs). Periodic or continuous checks on current employees keep you up-to-date and may be required by federal, state, or local regulations. Having a background check policy helps you to conduct fair, thorough, and consistent employment background checks and screenings.
Common types of background checks include:
Having a background check policy can streamline the screening process and help ensure that searches are conducted consistently and efficiently. You can use your policy to delineate the types of screening required for different positions so your HR team doesn’t have to make individual determinations each time you hire.
Your policy can also spell out background check procedures, which may include working with a qualified consumer reporting agency (CRA), like Checkr, to conduct accurate background checks. Establishing a uniform background check policy can help make your screening processes more comprehensive, mitigate potential claims of discrimination, and support your compliance with any applicable regulations. Background check regulations may include the Fair Credit Reporting Act (FCRA), as well as additional state, local, and industry regulations.
An employer background check policy clearly states your reasons for conducting pre-employment and employee background checks, the scope of your screenings, and the procedures you follow. A background check policy provides a framework for conducting careful and compliant background checks and a schedule for reviewing and updating your policy over time.
Background check policies typically include the following points or sections:
A few common rationales behind employment background checks include verifying identity, qualifications, and experience. Background checks are also conducted to meet industry or government requirements.
Your background check policy can help you clearly communicate how and why pre-employment and periodic employee background checks are conducted. By documenting processes, you can maintain consistent standards supporting fair hiring practices.
In your background check policy, you can identify which roles require background checks and what types of checks they need. Questions to ask may include:
Once you’ve established what’s required, create a roadmap. Following are some of the background check procedures you may want consider as you write your policy.
If you choose to conduct background checks in-house, create a clear standard operating procedure for your hiring team that includes all relevant local, state, and federal compliance requirements. This should also include a plan for keeping your team updated on any changing laws and policies.
Working with a third-party CRA can lighten the workload and simplify compliance. For example, Checkr provides you and your candidates with status updates throughout the process, while machine learning and automation can speed up your background checks by reducing manual work for your hiring team while still providing the information necessary for their review.
You’ll use these forms to notify candidates that you’re planning to conduct background checks and can obtain their written consent to do so. You may want to include a background check statement indicating that a background check is required as a condition of employment.
Background check services can support your compliance needs by integrating the consent and disclosure process into your digital background check flow.
In the interest of fair hiring, the Equal Employment Opportunity Commission (EEOC) offers guidelines on considering past criminal convictions during the hiring process. Employers are encouraged to make individualized assessments of candidates or employees based on three primary factors:
Additional considerations include but are not limited to the facts or circumstances surrounding the offense or conduct, and the candidate’s age at the time of conviction or release. Crafting a thoughtful policy on criminal convictions can help you establish fair chance hiring practices, while also offering practical guidance your HR team can reference when the need arises.
Create an adjudication matrix or set of standards your hiring team can easily and consistently use to assess the information in a background check.If you decline to hire, engage, or promote a candidate or employee based on information in a background report from a CRA, you should follow the adverse action process outlined in the FCRA, as well as any state and/or local processes. If you work with a CRA like Checkr, you may be able to take advantage of tech-driven workflows that streamline your adjudication process.
The EEOC recommends keeping background check information on file for at least a year after you obtain it (or after an action is taken based on it). We recommend speaking with your legal counsel regarding any specific retention considerations you have. When you’re ready to dispose of materials containing personal identifying information and other sensitive data, follow FTC guidelines: Shred, burn, or pulverize paper documents and erase or destroy digital files so they cannot be reconstructed.
Plan to revisit your policy every six months (or annually) to make adjustments based on new rules or changing needs at your organization.