As any experienced hiring manager can tell you, the hiring process can be both exciting and a little nerve-wracking. Even when you’ve found what you believe to be a dream candidate for your open position, there’s still the matter of the background check. Will your screening check return any red flags? And, more importantly, could it get you sued?
The regulations surrounding background checks can be a slippery slope, especially when it comes to maintaining your compliance with the Fair Credit Reporting Act (FCRA). Although violations of the federal regulation can lead to potentially crippling fines and settlements, the FCRA is not well understood by many employers. Without a deep understanding, unfortunately, it can become difficult to stay out of trouble.
The FCRA became official in 1996 and was developed to protect citizens and professionals from unfair or inaccurate credit reporting. This act helped to establish standards that ensure that employers, insurers, and banks follow a strict method for determining someone’s credit worthiness.
One of the most important guidelines for HR professionals can be found in Section 613 of the FCRA, which states that Consumer Reporting Agencies (CRAs) are to “maintain strict procedures designed to ensure that whenever public record information which is likely to have an adverse effect on a consumer’s ability to obtain employment is reported, it is complete and up to date.” In other words, if you’re going to be using background checks to aid in hiring decisions, you better choose mediums to provide this information to you that are completely reliable.
That’s why the most beneficial step most businesses can take in order to ensure that their hiring strategies are compliant with FCRA guidelines is to choose a qualified background check company. Not only will you be selecting a provider that is familiar with and up-to-date on all compliance issues, but you also want a company that is highly responsive and makes the background check process as simple and easy as possible so that the hiring process can proceed smoothly and predictably.
If you’re worried about accidentally creating a potentially costly FCRA hiring mishap, KRESS has got you covered! Contact us today to learn how our hiring experts can help you design a compliant hiring plan that suits your company’s unique needs.