If you are conducting a background check in Buffalo, NY, do you have to inform employees and/or applicants about the results of their screenings? It depends. Although keeping people in the loop generally is the best policy, legal requirements only apply to specific situations.
What If Someone Passes a Background Check?
Letting an applicant or a current employee know when a background check has cleared is a smart business practice. After all, not knowing the results of screening can be nerve-racking, so both current workers and candidates will appreciate the feedback. Also, keep in mind, according to the Fair Credit Reporting Act (FCRA), anyone may request a copy of their report regardless of the results. In fact, some states, including California, Minnesota, and Oklahoma, require employers to clearly present this option on the background authorization form.
What If Someone Fails a Background Check?
When the information on a screening report raises concerns, your company cannot simply fire an employee or disqualify an applicant. Once again, the Fair Credit Reporting Act comes into play. The FCRA is in place to protect consumers because sometimes screenings reports DO contain errors. And, no one wants to lose a job because of a mistake.
Therefore, if your organization is planning to take an action (such as firing or not hiring) based on background information from a third party, you must comply with the FCRA’s pre-adverse and adverse action process. First, you must inform the employee of your proposed decision by sending three items: 1) a Pre-Adverse Action Notification, 2) a copy of the background report and 3) a copy of A Summary of Your Rights Under the Fair Credit Reporting Act. Next, the employee needs enough time to dispute inaccuracies. This could be anywhere from five to thirty business days depending on state and local laws. Finally, your company should follow up with an Adverse Action Notification. Businesses that fail to adhere to these procedures may face fines and litigation.
Do You Need to Run Employee Background Checks in Western New York?
At Metrodata Services, our specialists understand federal, state and local laws. We can help you successfully navigate the rules, so your organization can focus on finding and keeping the best people. Contact us today and learn more about the screening services we offer!