What To Do When Your Candidate “Fails” A Background Check

Background checks have become an integral part of the hiring process for many employers. These checks provide valuable information that helps make informed hiring decisions, maintain a safe work environment, and ensure compliance with industry and legal requirements. While most background checks come back with no adverse information, there are instances when a candidate’s background check reveals unexpected news. In such cases, employers need to know what to do when a candidate “fails” a background check.

This article will explore the steps employers can take when faced with a failed background check. We will discuss what constitutes a failed background check, why a candidate may fail, and what actions employers should consider taking. By following these guidelines, employers can make fair and compliant hiring decisions while ensuring the safety and integrity of their workforce.

What is a “Failed” Background Check?

A failed background check refers to a background screening report that uncovers “hits” or alerts on a job candidate. These hits can vary depending on the type of background check conducted and the role the candidate is being considered for. It’s crucial to understand that a candidate is not automatically disqualified from the position due to a failed background check. Instead, it serves as a red flag that requires further consideration.

Employers should review the report based on their company’s background check policy and hiring procedures when faced with a failed background check. This careful review will help in making an informed decision on how to proceed with the hiring process.

Reasons Why a Candidate Could “Fail” a Background Check

There are various reasons why a candidate may fail a background check. These reasons can range from criminal history and discrepancies in employment or education history to an unsafe driving record or a failed drug test. Employers need to consider these factors in the job offer context and the position’s nature.

Criminal History

One of the common reasons for a failed background check is a candidate’s criminal history. A criminal background check can reveal felony and misdemeanor convictions, infractions or violations, and even charges that were dismissed or didn’t lead to prosecution. The impact of a criminal record on a candidate’s eligibility for a position will depend on the type and severity of the offense. For example, a candidate with a fraud conviction may be ineligible for a role in financial services.

Employment History

Another reason a candidate may fail a background check is discrepancies in their employment history. Employment verification checks are conducted to confirm the accuracy of a candidate’s past employment information. If a background check reveals inconsistencies between the information provided by the candidate and the information obtained through verification, it may raise concerns about the candidate’s honesty and integrity.

Education History

Education verification is another type of background check that provides information about a candidate’s academic credentials. A failed education verification usually indicates a discrepancy between the information reported by the candidate and the information reported by the educational institution. If a background check reveals invalid or missing academic credentials, it may raise doubts about the candidate’s qualifications for the position.

Driving Record

For positions that require driving, a candidate’s driving record becomes crucial. Driving record checks, also known as MVR checks, search state Department of Motor Vehicles databases for information about a candidate’s driving history. This includes license status, type, class, accident reports, traffic violations, and driving-related convictions. A failed MVR check may disqualify a candidate from a driving-related role if it reveals a suspended license or a history of unsafe driving practices.

Drug Test

Pre-employment drug tests are conducted to detect the presence of controlled substances or alcohol in a candidate’s system. If a candidate fails a drug test, it means that the test has detected the presence of a substance above the predetermined threshold. The impact of a failed drug test on a candidate’s eligibility for a position will depend on the nature of the role and applicable laws and regulations. Employers should consider the potential liability and safety risks associated with a candidate’s drug use in the workplace.

What to Do When a Candidate “Fails” a Background Check

When faced with a failed background check, employers should follow a systematic process to ensure fair treatment of the candidate and compliance with legal requirements. The following steps outline the recommended approach:

Consult Your Company’s Background Check Policy

Before making any decisions based on a failed background check, referring to your company’s written background check policy is important. This policy should guide how to handle such situations and ensure consistent and fair treatment of candidates. An effective background check policy should be up-to-date, comprehensive, and compliant with relevant regulations and Laws. By referring to this policy, you can ensure that your actions align with your company’s established procedures.

Send a Pre-Adverse Action Notice

If you are considering rescinding a job offer based on the results of a background check, you must first notify the candidate by sending a pre-adverse action notice. This notice is required under the Fair Credit Reporting Act (FCRA) and should include information about the adverse information discovered, a copy of the background check report, and the candidate’s summary of rights under the FCRA. The purpose of this notice is to allow the candidate to review the information and provide any additional context or explanation.

Allow the Candidate Time to Respond

After sending the pre-adverse action notice, you must give the candidate reasonable time to respond. This allows them to dispute any inaccuracies in the background check report or provide additional information that may affect your decision. Fair hiring laws in some jurisdictions may set a specific period for this step, typically between five to 10 business days. During this time, it is important to maintain open communication with the candidate and consider any information they provide.

Make a Hiring Decision

Once the waiting period has elapsed and you have considered any information provided by the candidate, it is time to make a hiring decision. This decision should be made after carefully evaluating the candidate’s qualifications, the nature of any offenses or discrepancies found in the background check, and how relevant that information is to the position. The EEOC (Equal Employment Opportunity Commission) recommends conducting a personalized assessment, considering factors like the type of offense, the time passed since the conviction, and how the offense relates to the position.

Send a Final Adverse Action Notice

If, after careful consideration, you decide not to move forward with the candidate, you must send a final adverse action notice. This notice should inform the candidate of your decision, its reasons, and their right to dispute the decision. It should also allow the candidate to request a copy of the background check report within 60 days. Suppose you used a consumer reporting agency to conduct the background check. In that case, the notice should include the agency’s contact information and clarify that the employer, not the agency, made the hiring decision. It is important to keep a copy of this notice and any attachments for your records.

Conclusion

Dealing with a failed background check can be a challenging situation for employers. However, by following a systematic approach and considering the guidelines outlined in this article, employers can make fair and informed hiring decisions. It is essential to consult your company’s background check policy, send pre-adverse and final adverse action notices, allow the candidate to respond, and conduct a thorough assessment before hiring. Partnering with a trustworthy background check provider like Vertical Identity can further simplify the process and ensure compliance with legal requirements. Remember, each situation is unique, and it is important to look for legal advice when necessary to ensure your actions align with applicable laws and regulations.