If you’re new to conducting employment screenings as part of your hiring process, one thing that you will learn very quickly is that not everyone comes back with a clean record, sometimes leading to a failed background check. There will be job candidates who otherwise seemed well-suited to the job that will not be hired due to information or discrepancies uncovered by the background check, which may disqualify candidates from the position, and it may fall to you to inform them that they aren’t getting the job.
These conversations are no one’s idea of a good time, and they can even feel cruel, depending on the circumstances. Occasionally, they can spark a confrontation. Nevertheless, such conversations are necessary, and with a little training, you can help ensure that they always go smoothly.
A Quick Introduction to Background Checks
What is a Pre-Employment Background Check?
Many employers conduct background checks as part of the hiring process to learn more about a candidate and verify the information provided in their application or resume. This process verifies the accuracy of information provided by the candidate, such as past employment history, education, and any criminal history. Employment screening may also include a review of the candidate’s credit history, driving record, and social media activity. By conducting these checks, employers aim to make informed hiring decisions and select the best candidates for their organization.
Importance of Background Checks in the Hiring Process
Background checks help employers make informed decisions when it comes to hiring employees. By verifying candidate information, employers can identify potential issues and assess suitability for the role. For example, a background check can highlight discrepancies in employment history or reveal a criminal record relevant to the job. This process helps employers mitigate risks, such as hiring individuals with a history of dishonesty or violence, contributing to a safer and more dependable workplace.
How Do You Fail a Background Check?
Employers must establish criteria for a failed background check before screening candidates. A company background check policy and decision matrix provide clarity on what leads to a negative result, maintaining consistency and making the process fair for all applicants. For instance, if a check reveals a poor driving record but driving isn't part of the job duties, it may not result in failure. A company's background check policy should specify which checks align with job descriptions and what results would disqualify candidates.
Potential Reasons for a Failed Background Check
Reasons for Failing a Background Check | Description |
Conviction of a felony offense | Employers may disqualify candidates with felony convictions, viewing certain offenses as too risky for their business. |
Misdemeanor offenses | Actions like theft, fraud, or assault can raise concerns about trustworthiness and the ability to work well with others. |
Active warrants or pending charges | Outstanding warrants or pending charges can be seen as a potential risk for the company. |
Misrepresentation of information | Lying about employment history can raise concerns about honesty and integrity. |
Gaps in employment | Lengthy or unexplained gaps may indicate a lack of commitment or reliability. |
High levels of debt | High debt levels may suggest susceptibility to financial stress, affecting job performance. |
History of bankruptcy or foreclosures | Raises concerns about financial stability and ability to manage finances. |
Incomplete or falsified degrees | Claiming unearned degrees questions honesty and integrity. |
Lack of required certification(s) | Missing necessary certifications can disqualify a candidate from positions requiring them. |
What If You Fail a Drug Test?
For many employers, drug testing is a standard part of the hiring process. A failed drug test could result in a candidate not getting the job offer. However, employers may choose to give candidates an opportunity to explain positive results before making a final decision. A failed drug test isn't necessarily an immediate disqualification; employers must consider state laws, company policies, and the nature of the role before making a decision.
Getting it Right Every Time
If you’re working with a trusted, professional screening company like KRESS, your agency will offer a verification of the data returned from the screenings. This allows us a chance to manually review the results in order to reduce the risk of false-positive matches, as well as to ensure accuracy. Illegible consent forms, outdated records, or other individuals with the same name could present information that may not be correct. It is important to note that the final hiring decision is made by the employer, not the agency.
Another method of verifying that the background check data is correct is to inform your employee. Through the Fair Credit Reporting Act (FCRA), job candidates have the right to dispute false or inaccurate information on their background checks. They should be made aware of these rights through the adverse action process.
Compliance and Best Practices
Fair Credit Reporting Act (FCRA) Compliance
The Fair Credit Reporting Act (FCRA) is a federal law that regulates the use of consumer reports, including background screenings. Employers must comply with the FCRA when conducting background checks, which involves several key steps. First, employers must obtain the candidate’s consent through consent forms before conducting the background check. This ensures that the candidate is aware of and agrees to the screening process.
Adverse Action Procedures
If the background check reveals information that may lead to adverse action, such as withdrawing a job offer, the employer must provide the candidate with a pre-adverse action notice.
To tell your employee that they’ve failed their background check, you first need to make them aware that you’re considering adverse action based on the results. The FCRA specifies that you send the following information as a pre adverse action notice within three days of receiving the background check results:
A written summary of the screening results
A copy of the background screening report
The background screening company’s contact information
A copy of their consumer rights under the FCRA
Your contact information
The potential employee must be given a reasonable amount of time to respond (we recommend five days) or dispute the results. If they are unable to dispute the findings or do not respond, you can move forward with adverse action, such as withdrawing the job offer or terminating the employee. This final adverse action notice should also include:
Written notification that you are taking adverse action based on the results of the background check
The background screening company’s contact information
Written notification that the decision was made by the employer and no one else
Written notice of the employee’s right to request another copy of their report within 60 days
A copy of their consumer rights under the FCRA
By following these steps, employers can ensure that their background screening process is fair, unbiased, and compliant with the FCRA. If that sounds like a lot of work, don’t worry—KRESS can manage all of your adverse action steps with our adverse action automation.
Don't Be Surprised
People make mistakes—even good people. Records from our teenage/young-adult party days can sometimes still show up and affect our job opportunities. Someone who has been working for your company for decades could suddenly slip up or fall into trouble due to family or life challenges. It’s never pleasant to be the one to share bad news, but it helps to be prepared.
Criminal background checks are an essential part of this preparation, as they can reveal past offenses that may impact job suitability. That means deciding in advance front which jobs require certain background checks so you’ll know what it means to fail a background check. Then, handle the situation the way the law specifies. Be consistent every time! Otherwise, doing so opens you up to potential liabilities that you don’t want.
KRESS Inc. helps employers with fair chance hiring and navigating the difficulties of background checks and employment law in Houston every single day. If you need help or simply have a question about background checks, feel free to call us today at 888.636.3693.