How to Use an Employee Background Check

employee background check

An employee background check is a useful set of information; just make sure that you are using it correctly!

Employee background checks can aid the process of hiring, retention, promotion, or reassignment. However, when using an employee background check, you have to make sure that you are following the Fair Credit Reporting Act (FCRA). The FCRA ensures that employee information is accurate, fair, and private. Follow these steps to make sure that you are always following the FCRA when using an employment background check.

Before Getting an Employee Background Check

You must inform the employee that you will be using a background check to aid your hiring decision. To do this, you should present the hiring candidate with a standalone document the informs them that you will be using an employee background check. The hiring candidate provides you with permission to use the employee background check by signing the provided document. After receiving written permission from the hiring candidate to use an employee background check, you must follow the FCRA anti-discrimination guidelines.

Before Taking and Adverse Action

In many cases, an employee background check will reinforce your decision to hire or promote a candidate. However, there are times when an employee background check will reveal compromising information that makes you rethink your decisions. Before deciding to reassign or terminate an employee, deny a promotion, or take any other adverse action, you must give the employee two things. The first is a copy of the employee background check that you used to base your decision on. The other is a copy of “A Summary of Your Rights under the Fair Credit Reporting Act.” Giving these two documents to the candidate in question will help them to better understand your decision. They can also review the information provided and tell you if there are any discrepancies before you make an important decision.

After Taking and Adverse Action

After taking an adverse action, be sure to give the employee oral, written, or electronic notice of the action. The notice must include the name, address, and phone number of the company that provided the employee background check along with a statement that the employment screening company had no decision in the adverse action. You must also provide a notice that the candidate has the right to dispute the report within 60 days. After providing notice to the candidate and taking the adverse action, make sure to dispose of your copy of the employee background check.


AIR Pre-Hire in Reisterstown, MD, conducts accurate and verified universal background screening, so you will have thorough background checks on your employees. Here at AIR Pre-Hire we don’t simply check the basic information, we dig deep to identify inconsistencies and make sure your potential employees (as well as existing employees) are acceptable for hire. This is the human element of our custom pre-screening service. You can count on us for timely, verified pre-screening and employee re-screening.

Learn more by visiting our website or calling us at 1-800-469-4473. Check us out on FacebookTwitterGoogle+, and Pinterest as well.