FCRA Employment Screening Compliance

Following the law for background checks.

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Why Care About Compliant Background Checks?

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Employee Rights

Misuse of personal, sensitive information for hiring decisions can lead to illegal and discriminatory hiring practices. The Fair Credit Reporting Act (FCRA) is just one of many laws used to protect employees against injustices in hiring.

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Workplace Safety

Companies have a “duty of care” to protect their workforce from employees who pose a security risk. That means employers must identify and avoid hiring high-risk applicants, but within a transparent and fair hiring policy.

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Adverse Action

FCRA-compliant consumer reporting agencies provide the processes for notifying a candidate when a background check uncovers adverse information. Our process includes a built-in opportunity for candidates to dispute the information.

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GoodHire is the only employment screening company I’ve seen committed to fairness in hiring for both employers and employees. Its spotless operational record proves that commitment.

Dr. Lawrence VanHook, Director of Project Open Gate

GoodHire's Compliance Advantage

In addition to FCRA, state, and local laws, GoodHire’s compliance team can help you comply with increasing Ban-the-Box laws and the Equal Employment Opportunity Commission’s (EEOC) guidance.

Increasing EEOC Oversight

The EEOC has recently pursued discrimination claims against employers whose screening policies disproportionately affect a protected group. Consequently, any hiring policy that disproportionately screens out minorities, including policies that ban employment of people with criminal records that are not job-related or consistent with business necessity, may automatically be considered in violation.

Ban-the-Box Campaigns

Ban-the-Box legal landscape is still developing, quickly expanding its effect nationwide. We recommend companies remove the “prior conviction” question from applications proactively, to save time later and deflate EEOC attention now. If you must keep the question on your application, GoodHire is unique in providing employers additional, individualized context for criminal records.

Individualized Assessment With Comments For Context

See how Comments For Context simplify hiring

  • Federal and state laws discourage employers from screening out applicants based on a criminal record alone.
  • One way to avoid discrimination is to consider the relevance of the record to the job, along with other factors.
  • Background check results offer limited details, making it hard to create the individualized assessment needed for Adverse Action.
  • GoodHire Comments for Context lets candidates add relevant details that help you make fair, individualized hiring decisions.
  • GoodHire provides guidelines to keep the information fact-based and insights-focused.
  • Comments stay with a candidate's GoodHire results forever, so any employer who uses GoodHire will see them.
The Fair Credit Reporting Act (FCRA) governs permissible use and Adverse Action, and is enforced by the FTC.
EEOC Title VII prohibits employment discrimination based on race, color, religion, sex and national origin.
Fair Chance Business Pledge is an Obama White House-led call for the private sector eliminate hiring barriers for people with criminal records.
GoodHire helps employers comply with all local state laws through customized flows and educational resources.
GoodHire staff are trained through advanced FCRA courses. Top-notch legal and compliance team.
Privacy by Design approach combines respect for users and holistic consideration of regulatory trends.
True Me provides employers with details that help you make fair, individualized hiring decisions.
Inflection / GoodHire SOC 2 Certification is underway. The audit will be complete in mid-2017.

Ban-the-Box Legislation

The grassroots ban-the-box campaign aims to improve the odds of finding employment for people with criminal records by removing the question that asks about criminal convictions from employment applications. But ban-the-box laws typically don't forbid employers

from inquiring about an applicant’s criminal history or from running background checks. They can affect the timing of background checks and inquiries about criminal records, though. And they can make complying with the FCRA-mandated adverse action process trickier.

Decision Guide: Ban-The-Box vs. FCRA

What do you do when adverse action laws conflict? Download this simple decision tree to determine which laws you have to follow to stay compliant.

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