Federal and state regulations are changing with practically every class action lawsuit and it can be a challenge to stay abreast of the latest information. In order to take the education even further, we've done some of the work for you, providing free sample templates and other forms that can be used to help with background screening practices. One more template is now available - a free sample background check policy.

Read more to learn why your business may need a background check policy.

In November 2018, national retailer of pet supplies, Petco, was ordered to pay 1.2 Million dollars in a California Employment Background Screening Class Action Settlement. The case was brought against the company in 2016 when two applicants found that the employer "obtained and reviewed consumer reports" about their financial history without first obtaining consent. One applicant was hired but the other was denied employment due to adverse information on her background check report. She was not notified properly so she could dispute any inaccurate information.

With the number of Fair Credit Reporting Act (FCRA) lawsuits against employers, it's obvious that job applicants are more aware of their applicant rights than ever before. Is your screening provider giving you guidance on FCRA compliance so your organization is protected against litigation for improper adverse action?

Let's look at the case against Petco.

The #MeToo movement may be affecting the annual company holiday party tradition, according to a recent study quoted on HRDive. Even though consumer and corporate confidence in the economy is higher than last year, the amount of companies planning to host a holiday party is as low as it was in 2009. The reason? Alcohol, the potential for inappropriate behavior and the liability of the HR department and the company throwing the shindig. While 57% of employees have seen their co-workers drunk, many businesses are considering a way to make the annual gathering less...wild.

Should your company have a holiday party? Let's offer some ideas to avoid bad behavior.

Whether it's your first hire or your thousandth, employers should have very clear and thorough knowledge of background checks. Pre-employment background checks are highly recommended to reduce turnover, minimize risk of negligent hiring and legal costs. At a minimum, employers should be verifying previous employment, education, criminal records, and credentials. 

The Equal Employment Opportunity Commission (EEOC) has recommendations for screening candidates that employers must also follow so they won't be responsible for punitive damages if the candidate decides to file a claim. Employers should also know what screens to ask for, how to get a faster turnaround and at a fair cost.

When hiring a new employee, it may be tempting to run every background check available. This is a bad idea for two reasons - (1) running unneeded background checks will take longer and (2) they'll cost more too.

Instead of checking the box on every background check, consider certain background checks may only be needed for certain types of jobs. Understanding the types of background checks, and what information they reveal, can also be helpful to determine which background checks best fit the situation.

How to select a background check package for new hires

Creating a background check policy allows your human resources department to be consistent during the hiring, promotion and terminations processes. Employers must be mindful of applicant rights when applying a background check policy and any local, state or federal employment laws applicable in your area.  Attempting to remember screening procedures as well as compliance rules can be challenging, especially if hiring is done sporadically or not as often. A screening policy is a dependable, company-wide policy that helps to create a positive experience for hiring managers and employees.

Here are the most important steps to creating an HR policy for criminal background checks.

Most people lie on their resume. The typical resume untruths are embellishments or exaggerations so the candidate sounds more impressive or more experienced than they are. Earlier this year, CareerBuilder reported that 45% of hiring managers can't find qualified talent so fluffing up credentials is happening more than ever. These resume white lies may not necessarily reveal a bad hire if the candidate is bright, hardworking and willing to learn. Some applicants, however, may be hiding who they really are and it's up to the discerning hiring manager to uncover the scary truth underneath .

Here's what you may find behind the masks some applicants wear.

Nearly three quarters of employers run background screens on employment applicants. While it is assumed that employers are looking for criminal records, a Reddit thread about background checks uncovered plenty of other valuable and available information to determine if the applicant is a good fit. Those who fit well, perform better and stick around longer, reducing turnover costs and the risk of low morale.

Employers may be closely reviewing background check information to help improve or maintain a positive workplace culture.

More companies are choosing to screen their employees, both prior to hire and after they are employed. With the “Me Too” movement and the most recent accusations against Judge Kavanaugh, rolling background checks are now considered a good idea for employers wishing to make their workplace safe from sexual harassment.

If your company or HR department has considered rolling background checks, here are some best practices for updating your employment policies to include it.

Decision matrices are used by executives for all manner of business decisions that include many variables and multiple choices. When consistency is required and emotion must be removed, such as with hiring, a decision matrix can be a valuable tool. Federal legislation also recommends consistency and objectivity. The EEOC and other anti-discrimination laws rely on employers to reduce bias so that all applicants get a fair chance. 

A decision making matrix during the hiring process can be the perfect tool for leaders. Here are a few examples.