Conducting background checks on new hires is an important part of the hiring process for many companies. These screenings reveal any convicted felonies or misdemeanors, as well as records from institutions like the Drug Enforcement Administration and the National Sex Offender Registry database. Background checks can also verify education and employment information, in some cases. Background checks help you make sure you’re making a good hire – the peace of mind is well worth it.

Three things all employers should know about conducting background screenings:

You should use an FCRA-compliant service.

The Fair Credit Reporting Act (FCRA) is a federal law enacted back in 1970. It was first drafted to help consumers resolve inaccurate information in their credit reports, but it’s since expanded to include many rules on how employers and other entities can conduct background checks in a legal manner.

When you’re choosing a service to conduct background screenings, you should choose one that complies with FCRA regulations. Ask for documentation supporting their compliance to make sure. If you use a service that isn’t FCRA-compliant, you run the risk of being sued by a candidate if you were to refuse employment to someone based on information that isn’t accurate.

There are two types of employment background checks.

There are actually two types of employment background checks: those conducted during the hiring process (pre-employment background checks) and those conducted on an ongoing basis for existing employees. The pre-employment background check is, of course, the most common type of background check. But some companies utilize ongoing background screenings, either because it’s company policy or because a concern has come to light.

You should save your records.

It’s recommended that you save employee background check records for at least a year after the close of the job posting. You never know when a former applicant might inquire about their report or request a copy. And in the worst-case scenario, you’ll want to keep your records in case you’re ever sued by an applicant.

Get Help With Background Screenings

If your company needs help conducting employment screenings and background checks, Metrodata Services is here for you. We’re the PBSA-accredited screening provider that helps you make the right hiring decisions. Contact a member of our team today to learn more and get started.