In the quest to hire the best employees, employers often look at an employee’s past — past jobs, credit history, and criminal history. If you are conducting background checks, you know you have to comply with the Fair Credit Reporting Act (FCRA), but what other federal, state, and local laws are out there? Below are some key points to remember and consider:
With the exception of certain prohibitions on federal contractors performing pre-offer criminal background checks, federal law does not generally bar criminal background checks. State and local laws, however, may limit when you may conduct a criminal background check on applicants or employees and how you can use this information. For example, some states allow background checks only after you have made a conditional job offer. These laws may also limit how and when you can use a potential employee’s criminal history.
If you use a third-party agency (a screening agency, private investigator, or other third party), you must comply with the requirements of the Fair Credit Reporting Act (FCRA). If FCRA applies, then you must provide a disclosure and receive an authorization prior to conducting any background check. Additional requirements apply if you make a negative employment decision based on the background check. For example, before you make a decision, you have to provide the applicant...
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