Tip of the Month


Tip of the Month

Tip #3: Will The Applicant Know About A Background Check?

For each “tip of the month” this year we will focus on 12 different recommendations for creating a non-discriminatory employment background screening program.

When an employer decides to hire or promote an employee they should have a non-discriminatory legally compliant background screening program in place. Not only does this help employers ensure they are hiring the right person for the position, it also limits exposure to negligent hiring claims.

For this month we will focus on the question, “will the appicant know about a background check?”

Pursuit to section 606 of the Fair Credit Reporting Act, employers must obtain a signed disclosure and authorization form from the subject (i.e. the applicant) of the report before requesting an employment background check. Also, providing the applicant with notices explaining their rights under federal and state law is mandatory.

  • Yes, the applicant will be aware a background checks is being done on them
  • A disclosure and authorization form must be completed by the applicant prior to initiating a background check
  • Federal and State notices must be provided to the applicant once they complete the disclosure form.
  • Certain states allow for applicants to receive a free copy of their report (this must be an option on the disclosure form.)
  • Reduced rates for workers’ compensation insurance

Employers Choice Online Tip of the Month is provided as a free service to clients, friends and subscribers of Employers Choice Online, a division of Diversified Risk Management, Inc. The intent is to provide information of value to attorneys, human resource, security, and risk management professionals. The information contained in this e-mail alert is intended to provide useful information on the topics covered, but should not be construed as legal advice or a legal opinion. Your comments are appreciated. E-mail corporate

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