What do you do when your new hire fails their background check?
Do you retract the job offer?
The answer is: It depends. Let's review the steps required to make the decision.
Step 1: Confirmation
Step 2: Review your policy
Step 3: Pre-Adverse Action
Step 4: Decision
Step 5: Adverse Action/Job Offer Retraction
Adverse action may be taken only after following the required pre-adverse action process in step 3. The adverse action notice must be in writing and state that the job offer is retracted due to failing the background check and that the results were not disputed. The candidate must also be provided with a copy of the report and the background check company used to run the report.
Making the decision to hire or not hire should be a well-considered, documented, multi-step process to ensure the candidate's rights are protected.
With FCRA claims on the rise and more companies subjected to legislation for not following correct hiring procedures, it is imperative that all organizations, big or small, create a process that is reviewed regularly.
The content in this blog is designed to deliver an educational overview of the pre-employment screening process. Please note that VeriFirst is unable to provide advice to job applicants regarding employment screening outcomes. If you are a job seeker (not an employer), please refer to A Summary of your Rights under the Fair Credit Reporting Act.
Note: This post was originally published in 2015 and has been updated.