The Legality Of Background Checks

24 Jul The Legality Of Background Checks

Navigating the rules and regulations behind background checks can be confusing. It’s essential to know your rights regarding these checks to protect yourself during the hiring process. A background check might reveal various details about you, such as your educational background, criminal convictions and even traffic violations.

Employers often use this information when making hiring decisions. In fact, according to a CareerBuilder survey, about 72% of employers run background checks before hiring. However, there are certain limitations and allowances for employers when researching potential employees. Understanding these can help you navigate the job market with confidence and ensure your rights are protected.

Are Background Checks Legal for Employment?

Are criminal background checks legal? The laws regarding background checks for employment can vary depending on the state in which you live. However, federal law provides some baseline rights regarding what employers are allowed to ask.

Many individuals ask, “Is it legal to run a background check without consent?” Generally, it’s illegal for employers to conduct a background check without your permission. Any employer needs your written consent before they can legally run a background check on you.

You are within your rights to refuse a background check, but this decision will most likely decrease your chances of getting the job. Employers have specific restrictions on what they can and cannot ask during a background screening. They are not legally allowed to:

• Ask for or check your medical information.
• Ask for or check your genetic or family medical history.
• Ask more questions or conduct extra checks based on your race or ethnicity.

In addition to these restrictions, employers must follow guidelines set by the Fair Credit Reporting Act (FCRA). This act ensures that any background check conducted is done with your knowledge and consent, providing a layer of protection for potential employees.

Sometimes, companies will run a background check after you’ve already been employed. This can be part of a regular check or due to new circumstances within the company. Regardless, your employer still needs your written consent to conduct a background check. If a background check is conducted without your permission during your employment, you may have grounds to sue your employer.

Complying with the FCRA

One of the most important aspects of the legality of background checks is understanding the role of the Fair Credit Reporting Act (FCRA). The FCRA provides specific steps that employers must follow before and after conducting a background screening. These steps are designed to ensure that the process is fair and transparent for both employers and candidates. Additionally, failing to comply with the FCRA can lead to serious legal consequences for employers, emphasizing the importance of following these guidelines.

The FCRA requires that the hiring company must:

• Clearly notify the candidate that this screening will be done.
• Provide a copy of the background check report that led to a specific employment decision.
• Inform the candidate that the decision was made by the employer, not the background check company conducting the screening.
• Detail the candidate’s right to contact the background check company and dispute any inaccuracies.

These requirements verify that candidates are fully aware of the background check process and have the opportunity to address any issues that arise. Employers who fail to comply with these steps risk not only legal penalties but also damage to their reputation and trustworthiness.

The FCRA also mandates that all information within a background report be accurate and fairly reported. A violation in this area can seriously impact a victim’s chances of obtaining employment and the FCRA therefore provides for remedies to hold violators liable.

Understanding and complying with the FCRA is crucial for employers to ensure a fair hiring process and protect the rights of candidates. This federal law helps maintain transparency and fairness, making it a key component in answering the question, “Are background checks legal?”

We’re in Your Corner

If the hiring company engages in any unfair procedures, you might be eligible for compensation or certain remediate decisions. Credit checks are often included in background checks, especially in industries such as security and banking. This brings about the question, “Are credit checks legal for employment?” They are legal in most states, but you can certainly ask why one is necessary, especially if the job does not involve handling money.

If you have unresolved credit reporting errors, it’s essential to address them promptly so prospective employers get an accurate account of your track record. For assistance, reach out to Stein Saks, PLLC. We can help you resolve credit reporting errors, background reporting inaccuracies, and protect your rights. If you need further assistance or a consultation, don’t hesitate to reach out to us.