Screening FAQs
Have a question? We’re here to answer it.
We pride ourselves on helping our clients navigate the questions that inevitably arise during the background screening process. Check out the answers to some of our most commonly asked questions here, or give us a call for more personal help – we’re happy to discuss anything from adverse action to warrants.
Click a question below to see our detailed response, or keep scrolling for all answers:
What is the liability associated with not screening employees?
What services should we include in our employment screening program?
Can employment screening be considered discriminatory?
Does your company provide services nationwide?
How long does it normally take to get reports?
Why should I use a social security trace?
After reviewing the results of my candidate’s background check I have decided that I am not going to hire them. Now what?
Can I choose not to hire an applicant based on his/her credit report?
Why should I verify education for my candidate when my candidate supplies me with a copy of their diploma?
What is a “diploma mill?”
What is the liability associated with not screening employees?
Negligent hiring is a legal theory under which employers can be held liable for the unlawful or improper actions of their employees if it can be shown that they failed to make “reasonable” inquiries into the employee’s background and suitability for the position. Most negligent hiring lawsuits maintain that the employer failed to conduct appropriate research, such as a criminal record history, employment verification and other background information, that would have disclosed the employee’s past misconduct, and that, therefore, the employer was negligent for putting a person with criminal or other inappropriate tendencies, in a position where they could pose a threat to coworkers, customers or members of the general public.
Under the theory of negligent hiring, if the employer knew, or should have known, of the risk presented by the employee, the employer can be held liable. Employers found negligent in the hiring process have been subject to substantial financial penalties including both actual and punitive damages, which are now reaching hundreds of thousands and even millions of dollars.
What services should we include in our employment screening program?
A company’s objectives determine what an employer will want to include in a background check. Employers only concerned with avoiding liability would conduct a minimal search that would be considered a “reasonable” inquiry by our judicial system, thus helping to protect the company should a negligent hiring lawsuit arise. Since the law has not defined “reasonable,” an employer doing a minimal search is relatively protected from a negligent hiring claim. Clarifacts recommends this minimal search include, at least, a social security trace and criminal record search.
If the employer has goals beyond liability protection, such as the safety, integrity and capabilities of its employees, the screening process will be more extensive. Therefore, when determining what to include in the background check, employers must look at the various positions within their organization and request such services based on the job classification. For example, in addition to a social security trace and criminal record search, which is recommended for all positions, requesting a credit history report for a staff accountant position or driving record history for a delivery driver position would be both appropriate and highly recommended. Clarifacts can assist employers in developing an employment screening program to meet their specific hiring needs.
Can employment screening be considered discriminatory?
An important aspect of any employment screening program is consistency. Employers with a written policy who are conducting background checks uniformly within job classifications will be able to refute most claims of discrimination. Employers may also face claims of discrimination when using the information obtained from a background check. Therefore, employers should have job related standards in place on what negative information may preclude an applicant from employment. Again, these standards must be followed consistently.
In addition, employers must be aware of the guidelines the Equal Employment Opportunity Commission (EEOC) has mandated for the use of criminal records. The EEOC and other state legislation restrict the use of background information by an employer. Under EEOC guidelines, an employer may not automatically disqualify an applicant with a criminal record. Before making the final hiring decision, the employer must take into consideration several factors such as the nature of the offense, how long ago it took place and the position for which the applicant is applying. Not taking these factors into consideration may result in a claim of discrimination and EEOC scrutiny.
Does your company provide services nationwide?
Clarifacts has research capabilities throughout the country and serves clients across the United States.
How long does it normally take to get reports?
Generally speaking, results are returned in about 24-72 hours. Some searches may be returned sooner or even instantly while other may take a bit longer due to circumstances outside of our control, such as court delays or an uncooperative previous employer.
Why should I use a social security trace?
A social security trace is the first step in developing a comprehensive background check. It is an extremely cost-effective tool that is used to identify an applicant’s address history and discovering any other names that they may have used in the past.
If you don’t use the address and name history provided in a social security trace, you have to rely on the applicant’s supplied information. A dishonest applicant with something to hide will be less than forthcoming about where or under what name he or she was convicted. Performing a social security trace gives Clarifacts the ability to lay out a roadmap for conducting a thorough criminal record search.
After reviewing the results of my candidate’s background check I have decided that I am not going to hire them. Now what?
Adverse action as defined in Section 603(k)(B)(ii) of the Fair Credit Reporting Act (FCRA) means a denial of employment, or any other decision for employment purposes, that adversely affects any current or prospective employee.
When an employer receives a background verification report, also known as a Consumer Report, and decides not to hire the applicant based on the information contained in the report, they must provide a notice to the applicant prior to taking the adverse action.
The employer must also provide a separate second notice as required by the FCRA (Sections 604 & 615(a)). These notices are generally known as pre-adverse action and adverse action letters.
Clarifacts can handle this process for you or walk you through the steps of the process more in-depth. Contact Clarifacts for more information.
Can I choose not to hire an applicant based on his/her credit report?
It would be safe to say that most people have experienced at least some financial difficulties in their lifetime. So, an applicant with negative marks on their credit report should not automatically be disqualified for employment. In fact, employers should avoid making negative hiring decisions on information that is from years past or that is relatively minor.
The Fair Credit Reporting Act stipulates that if an employer decides not to hire an applicant based on the information in the report, they must first provide a notice to the applicant prior to taking the adverse action and also provide a separate notice after taking the action. The notice must provide the applicant with information on how to obtain a copy of the report. An employer that fails to comply with FCRA requirements could be liable for civil penalties.
Employers should always consult legal counsel regarding what data can be used in evaluating a candidate and should have policies and procedures in place to ensure that the use of credit information is both relevant and fair.
Why should I verify education for my candidate when my candidate supplies me with a copy of their diploma?
Educational history may be the most commonly falsified information on an application or resume. Some estimates place the incidence of resumes containing erroneous education information as high as 30 percent. Clearly, employers should be extremely cautious. At Clarifacts, we do not recommend accepting copies of a degree from candidates as proof of their graduation given that it can simply be a clever forgery paid for by the applicant.
What is a “diploma mill?”
As higher education becomes more of a determining factor in one’s eligibility for certain jobs, some applicants are looking for shortcuts to remain competitive in the marketplace. This has led, in turn, to a proliferation of so-called “diploma mills” where you can earn the appropriate certification or degree based on how much you are willing to pay. These institutions’ philosophies are that people should be able to use their “relevant knowledge” and life experiences to earn a degree.
Additionally, the Higher Education Opportunity Act defines a “diploma mill” as an entity that–(A)(i) offers, for a fee, degrees, diplomas, or certificates, that may be used to represent to the general public that the individual possessing such a degree, diploma, or certificate has completed a program of postsecondary education or training; and (ii) requires such individual to complete little or no education or coursework to obtain such degree, diploma, or certificate; and(B) lacks accreditation by an accrediting agency or association that is recognized as an accrediting agency or association of institutions of higher education (as such term is defined in section 102) by–(i) the Secretary pursuant to subpart 2 of part H of title IV; or (ii) a Federal agency, State government, or other organization or association that recognizes accrediting agencies or associations.
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