Employers run background checks on employees to keep both their business and their customers' interest safe. A basic background check is used to verify a potential employee's identity and determine if there was any past criminal activity. Credit checks aren't necessarily included in a basic screening but would be used if the job description requires it and could affect employment chances. Federal law prohibits employment discrimination based on gender, race, and religion, however as of this writing, only 11 states have limits against discrimination based on credit.

Can an employer look at an applicant's credit report? The answer is, "It depends."

Employers and job seekers alike struggle with the time it takes to receive background check results. The waiting is the hardest part... 

Most frustrating is that some background checks seem to take less time than others, leaving hiring managers scratching their heads wondering why. In general, the results of a background check could take 2 or 3 business days but there are many factors that could affect that number. 

Why do some background checks take longer than others? 

Background checks are important for any size business but may be overlooked by small businesses who don't hire regularly or don't know where to begin.  Some growing businesses may also opt out of screening due to time constraints or cost. Small businesses, however, have a lot more to lose by not screening new employees. If the wrong employee is hired, there's a huge loss of time and money. If the employee doesn't represent your company well, you could be sued for negligent hiring or face brand reputation challenges.

Background checks don't have to be a pain for small businesses. Use this handy resource list to get started and keep your company safe.

Ride-sharing companies like Uber and Lyft have been questioned by, and in some cases forced out of, cities around the world for their policy, or lack thereof, on background checks. In April of this year, Uber announced it would perform ongoing criminal background checks on drivers as well as monitor driver records for criminal arrests. With so much focus on ride-sharing companies, taxi and bus driving companies have also come under fire. 

For transportation companies, it begs the question: Have your drivers had background checks?

Since the beginning of the VeriFirst blog, the goal has been to provide an educational resource and assistance to employers and property managers. Compliance is important to those who read here, as well as an awareness of the latest employment and housing laws across the nation. VeriFirst's FCRA certified staff works closely with our clients to help with hiring the right employee or placing the perfect tenant.

Bookmark this blog post as a go-to compliance guide with background check forms and templates for employment screening and tenant screening.

For employers who screen applicants, the process can be overwhelming, time consuming and cost prohibitive. Running background checks, however, can reduce the risk of negligent hiring and high turnover and is a positive step to ensure you're hiring the right employee. To balance out the risks with the potential negative cost of resources, applicant screening can be more accessible and efficient with some HR organization.

Two important keys to applicant screening are company policies and job descriptions.
Here's how they help.

The Fair Credit Reporting Act (FCRA) says that individuals have a right to access the background information stored on them, no one can access it without permissible purpose (such as employment), and they can dispute any information that is wrong. Adverse action procedures are specific in protecting these consumer rights. With the rise in FCRA compliance claims, employers are doing their best to follow regulations during adverse action procedures, including rescinding a job offer. 

When a hiring manager finds an arrest or conviction on a background check, what is the best way to withdraw the job offer and remain FCRA compliant? 

When an employer hires someone to work for them, they are asking that person to be a representative of the company. The best outcome is to have hired an employee who is respectful, productive and trustworthy. The worst would be for the employer to face negligent hiring claims in court against a customer or another employee who was hurt in some way by the employee. Negligent hiring claims could be costly, not only in dollars, but to the company's brand and reputation. 

Is your business running pre-employment background checks to protect against negligent hiring claims?

Background check costs shouldn't be a fortune (but they could save you one!).

Consider the thought of running background checks on a potential new hire. Did you cringe a little? If so, there's a possibility that you may opt out of background screening altogether. In fact, one of the main reasons some companies avoid background screening is due to cost.

Here's the thing - background checks shouldn't cost your company a fortune. In fact, opting out of a background check can lead to both a time and money suck for your company. 

Background screening can actually be an affordable way to keep your company employees safe and save money along the way.

If an employer screens applicants regularly, they should be aware of federal,  state and local laws around background checks. Businesses of all sizes are being held to these strict regulations or else they are facing punitive fines in court. Consumer rights are protected against inaccurate reporting of their backgrounds. Other laws penalize for discrimination during the hiring process. If your business is running background checks, your hiring and screening policies should be consistent and compliant.

Is your employee screening policy in compliance? Review these laws to find out.