Employee Background Checks

Negligent hiring is a serious legal risk. If an employee harms a customer, coworker, or third party, and you failed to conduct a reasonable background check that would have revealed a relevant history, your business can be held liable.

Beyond legal risk, a bad hire is expensive. The cost of recruiting, onboarding, and training a replacement — plus lost productivity during the transition — can easily exceed $10,000 for a mid-level position.

Employment screening is not about distrust. It is about verifying that the information a candidate provides is accurate, and that there are no undisclosed issues that would make them unsuitable for the role.

A comprehensive employment background check can include criminal history at the county, state, and federal level; employment verification confirming dates of employment, job titles, and eligibility for rehire; education verification confirming degrees and certifications; professional license verification; sex offender registry search; and credit reports where permitted by law.

The right combination of checks depends on the nature of the role. A position involving financial responsibility warrants a credit check. A role working with vulnerable populations warrants a thorough criminal history search. A senior management position warrants employment and education verification.

The FCRA imposes strict requirements on employers who use consumer reports for employment purposes. Before ordering a report, you must provide the applicant with a standalone written disclosure — separate from the employment application — and obtain their signed authorization.

If you intend to take adverse action based on the report (such as rescinding a job offer), you must first provide the applicant with a pre-adverse action notice, a copy of the report, and a summary of their FCRA rights. After a reasonable waiting period — typically five business days — you may send the final adverse action notice.

Background Check Solutions provides all required disclosure and authorization forms at no extra charge, and our reports are designed for permissible-purpose employment use.

Many states and cities have enacted "ban the box" laws that restrict when and how employers may inquire about criminal history. Some jurisdictions prohibit asking about criminal history on the initial application; others require an individualized assessment before taking adverse action.

Credit checks for employment purposes are restricted or prohibited in several states, including California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont, and Washington.

Always consult with an employment attorney familiar with the laws in your jurisdiction before implementing a background screening policy.