The hiring process for bringing a new employee into your company can seem overwhelming. There are multiple background checks to do, while keeping in mind important regulations and guidelines. One of the most important set of laws to consider when hiring someone new is the Fair Credit Reporting Act (FCRA). The Fair Credit Reporting Act protects job candidates during the hiring process, and it is important to have an understanding of the regulations before you make a hire to ensure that you are following these laws adequately.
What Is the Fair Credit Reporting Act?
The FCRA is a federal law that was passed to regulate how a credit reporting agency can handle a person’s information. It was passed in 1970, and its aim is to foster the accuracy, fairness and privacy of sensitive information that consumer reporting agencies have access to. The Federal Trade Commission (FTC) enforces the FCRA.
Who Does the Fair Credit Reporting Act Protect and Affect?
The FCRA was created in order to protect job candidates whose consumer reports are accessed by potential employers during background checks. When accessing a consumer report for a background check, employers must notify potential employees and get written permission from those candidates to access the report. Employers must also make certain that they adhere to all guidelines in the FCRA, and that they do not otherwise misuse information in the report. It is important for employers to review all FCRA regulations before they access and use consumer reports, because regulations can vary state by state, and they may limit what parts of a consumer report can be used to make hiring decisions.
Hiring a Third-Party Screening Company to Comply With the Fair Credit Reporting Act
Knowing and understanding the details of the FCRA can be difficult. There are many laws and regulations to keep up to date on to ensure you are using a candidate’s consumer report fairly. Thus, it can be extremely beneficial to outsource the background check process to a professional third-party screening company. A screening company makes it easier for an employer to stay FCRA compliant, and ensures that job candidates are treated fairly when being vetted for a job.
Here is why you should consider a third-party screening company:
The Report Can Be Overwhelming
If you are not used to running background checks, the consumer report can be overwhelming and hard to parse. However, the professionals working for a third-party screening company are used to reading and understanding the information in a consumer report, so they can come to informed, well-thought-out conclusions by reading one.
It Is Easy to Violate Laws
The laws in regard to the FCRA are complicated. For example, if a company decides to conduct its own background checks, but then uses information outside of the FCRA’s seven-year law to make any employment decisions, the company has violated the law. A third-party company is well-versed in the ins and outs of the regulations, so it will avoid violating any guidelines.
They Have Elite Software and Experienced Personnel
A third-party screening company like Origin is staffed with elite professionals with experience conducting background checks. Not only does this allow them to avoid breaking laws, but it also means that the background checks can happen quickly and accurately, since these professionals have access to the highest-quality software and most extensive knowledge.
The Benefits of Hiring Origin
If you are planning to run a background check on an employee you want to hire, contact Origin. Origin’s graded background check has several benefits for employers, including reduced confusion, quicker turnaround times and better compliance. They can structure the background screening process to a pass or fail grading scale structure. Meaning, you can assign weight to the categories that mean the most to you and less weight to those you find less important. For instance, if you do not wish to see any misdemeanors such as traffic violations, then those can be over looked. Additionally, if you are in a safety sensitive sector and do not wish to hire someone with a dense criminal record, the report can show an automatic fail. By having Origin do the tedious work, you can focus on other important tasks and rest assured that you are hiring the exact individuals you are searching for. This grading system leaves the extensive analyzing process to the experts and allows you to make executive decisions based off your desired criteria.To learn more about our process and services, check out our website and discover how our graded background check will significantly benefit you!