When an employer or landlord runs a credit check on a future tenant or employee, they expect accurate information. Consumers also want to know that the information is correct and up-to-date. Adverse information on a background check, especially a credit report, can affect employment, housing, buying a car or obtaining a loan.  It's imperative that the information be true, verified and safe.

When running a credit background check on an applicant, can you trust what you see?

Keeping individual, multi-family or student rental properties safe, clean and rentable is just as important as having the rent paid on time. Landlords who have not screened their tenants may be curious about background checks, especially if rent isn't being paid or if suspicious activity arises. Property owners who are looking for highly qualified individuals may also have questions about screening future tenants. There are lots of different ways to look into the past of tenants, including a "cheap internet search" but they could cause more trouble than they're worth. As a landlord or property owner, it's best to obtain background checks legally.

So is it legal for a landlord run a background check without permission?

Employers have discovered that it's more important than ever to run background checks. Unfortunately, businesses of all sizes are still foregoing employment screening due to cost. Considering the cost of non-compliance lawsuits or negligent hiring claims, employers would be wise to investigate why their background screening costs are so expensive. Working with a trusted, professional background check partner can be helpful to saving time and money.

Here's how background check packages help reduce costs and increase compliance for HR.

So what do you do when your new hire fails their background check? Do you retract the job offer?

It's vital for HR managers to understand the changes happening in hiring and employment so they can attract and retain the best talent and remain compliant with state and federal laws. 2018 and the few years prior have seen a push for reduced bias, equal pay and more demands from a younger workforce. These changes continue to affect not only how to hire, but how to retain current employees, as well as legislative response with new employment laws.

Here's what employers can expect in hiring trends and employment legislation in 2019.

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.

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.

It's very important that we continue our mission to educate and inform our clients and readers about new regulations that may affect FCRA compliance.  We regularly share information on this blog about screening for hiring or placing tenants while explaining the importance of applicant rights. The Fair Credit Reporting Act (FCRA) specifies how to collect consumer reports, who has access and for what purpose, and that applicants should be aware of the information in their consumer reports. 

Effective this week, September 21, 2018, companies using background checks must implement new regulations pertaining to Consumer Rights and FCRA compliance.

To remain FCRA compliant, consider the following timing for sending adverse action notices.

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.