1. Build a Formal Background Screening Process

Compliance starts with a consistent, documented process. A formal employment background screening program ensures that every candidate is evaluated fairly and legally, while reducing bias in hiring decisions.

Key components of a compliant process include:

• Written policies and documented procedures.

• Candidate authorization and disclosure forms.

• Role-specific screening criteria.

• A documented adverse action process.

• Secure data handling and retention policies.

In the past, many employers used rigid “go / no-go” standards—such as rejecting any applicant with a criminal record. Those days are gone. The EEOC now emphasizes individualized assessments, requiring employers to consider the nature of the offense, the time since it occurred, and its relevance to the job. Courts are also reinforcing this shift.

This change is essential because more and more people are entering the workforce with a past. Having blanket policies can cause you to miss out on otherwise great employees who are ready to excel if given the opportunity. A structured, compliant process protects your business while expanding your talent pool.

2. Always Get Written Consent

The Fair Credit Reporting Act (FCRA) requires employers to get written consent before ordering a background check. This authorization must be clear, separate from the job application, and easy to understand.

Best practices:

• Provide a stand-alone disclosure and authorization form.

• Include the federally required Summary of Rights Under the FCRA.

• Include state-specific disclosures where required.

• Keep signed forms on file for audit purposes.

Pro tip: Digital forms are the easiest way to stay compliant. Utilize a CRA that has the ability to allow candidates to sign electronically, while creating an audit trail for your records.

3. Understand Federal and State Rules for Background Checks

At the federal level, the FCRA governs employment background checks. Key requirements include:

• Clear disclosure and authorization.

• Providing a copy of the report if adverse action is considered.

• Following the correct notification steps (see below).

But employers cannot stop at the federal level. Many states adopt the FCRA as their baseline, while more and more are enacting their own versions of the law. Recent legislation such as Clean Slate Acts and “Ban the Box” initiatives limit what information can be accessed and how it may be used in hiring.

• Some states automatically seal or expunge certain offenses after a period of time.

• Others prohibit employers from considering certain types of convictions altogether.

• Municipalities may have additional restrictions layered on top of state and federal rules.

Bottom line: HR leaders must stay up to date. What is permissible in one state may expose you to liability in another.

4. Follow the Adverse Action Process

If you’re considering not hiring someone based on their background check, you must follow the “adverse action” process. Skipping steps is one of the most common—and expensive—employer mistakes.

• Step 1: Send a pre-adverse action notice with a copy of the report and A Summary of Your Rights Under the FCRA.

• Step 2: Wait at least five business days to give the candidate a chance to respond.

• Step 3: If the decision stands, send a final adverse action notice.

This process gives candidates a fair chance to correct errors and ensures your company is in compliance with the law.

5. Not All Background Checks Are the Same

A smart organization doesn’t use the same screening package for every role. Instead, it tailors the background check to the position being filled.

Examples:

• Entry-level roles with direct supervision: Basic identity verification, criminal check, and employment history may be sufficient.

• Financial, IT, or executive-level roles: More comprehensive checks such as credit reports (where legally permissible), professional license verification, and extended employment/education verification may be needed.

By aligning background checks with job responsibilities, companies balance compliance with business needs—while avoiding unnecessary costs and reducing turnaround times.

6. Choose the Right Background Screening Partner

Not all background screening providers are the same. Large providers like HireRight and Checkr focus on high-volume, low-touch services designed for enterprise-level clients. These systems are efficient but often lack flexibility and personalized support.

At EDIFY Screening, we believe growing businesses deserve the best of both worlds:

• Client-focused service with dedicated, U.S.-based support.

• Flexibility to adapt to your unique policies, industries, and compliance requirements.

• Technology-driven efficiency without sacrificing the human touch.

This makes EDIFY the perfect partner for businesses that want enterprise-grade compliance tools with small-business responsiveness.

7. Don’t Forget About Re-Screening

Background checks shouldn’t stop at hiring. Many employers re-screen employees annually or before promotions. Done correctly, this protects your company from ongoing risk.

Key point: You must always get fresh consent before re-screening. Setting an automated reminder system through tools like Zoho Flow helps keep you compliant year after year.

Conclusion

Running employment background checks doesn’t have to feel like walking through a legal minefield. By creating a formal process, getting proper consent, understanding the laws, tailoring checks by role, and partnering with the right provider, you can keep your hiring process both safe and efficient.

👉 Next step: Download our free [Employment Background Screening Checklist] to make sure your process is airtight from start to finish.