
Are Background Checks State or Federal?
When choosing a new background screening provider, it’s essential to understand whether background checks are governed by state or federal regulations, or both. This FAQ article explores the different facets of background checks, including their scope and the legal frameworks that guide them, ensuring compliance with the Fair Credit Reporting Act (FCRA) and relevant local and state laws. This knowledge is crucial for prospective clients seeking a background screening provider that is comprehensive, fast, affordable, and legally compliant.
What Background Checks Do for Employers
Background checks serve critical functions in the hiring process, providing a safer work environment and protecting the company’s interests. Here are three significant benefits:
- Risk Reduction: Background checks help mitigate risks by screening out candidates who may pose a threat to the workplace. Statistics show that 85% of employers report finding lies or misrepresentations on resumes or job applications during the screening process, emphasizing the need for thorough background checks.
- Compliance with Laws: Conducting background checks helps employers comply with employment laws and regulations, reducing the risk of lawsuits and legal claims. For instance, failure to conduct background checks leads to a higher risk of negligent hiring claims, where employers lose a significant percentage of these cases when brought to court.
- Enhanced Quality of Hire: Employers who conduct thorough background checks are more likely to hire qualified candidates, with statistics showing that 72% of employers conduct background checks to verify the accuracy of a candidate’s application.
How Background Checks Work: Local, State, and Federal Courts
Background checks involve various components and steps, tapping into multiple sources and records:
- Components of a Typical Background Check:
- Social Security Trace: Validates the candidate’s social security number, identity, and address history.
- Criminal Records Search: Includes local, state, and federal jurisdictions to uncover any criminal history.
- Employment and Education Verification: Confirms the authenticity of the information provided by the applicant.
- Driving Records: Especially important for positions requiring vehicle operation.
- Credit Checks: Used for positions that involve financial responsibilities (subject to FCRA regulations and state laws).
- Steps in the Background Check Process:
- Consent and Disclosure: The first step is obtaining consent from the candidate, as required by the FCRA.
- Data Collection: Gathering data from various sources, including public and private databases.
- Verification: Ensuring the accuracy of the findings, particularly criminal records, which must be verified at the source.
- Compliance Checks: Adhering to federal, state, and local laws during the reporting process.
- Reporting: Compiling the verified and compliant data into a report that is provided to the employer.
- Local vs. Federal Courts:
- County Courts: Typically, most of the criminal background checks involve county courts where misdemeanors and felonies are recorded.
- Federal Courts: Federal records are checked for crimes that are prosecuted at the federal level, such as embezzlement, bank robbery, and federal drug offenses.
- Both levels of courts are integral to a comprehensive background check, ensuring thorough screening across all relevant jurisdictions.
Duration and Scope of Background Checks
Background checks typically look back seven years, in compliance with FCRA regulations, although this can vary based on state laws and the nature of the criminal act. The results of a background check can include criminal records, credit history, past employment verification, and more, depending on the depth of the check and the position requirements.
Conclusion
To answer the initial question, background checks involve both state and federal jurisdictions, depending on the depth and breadth of the search required. They are crucial tools that help employers make safer and more informed hiring decisions. For organizations looking for a reliable partner in conducting these checks, EDIFY Background Screening offers the expertise and technology needed to deliver efficient and affordable background investigations. We ensure compliance with all applicable laws and tailor our services to meet the unique needs of each client, making us an ideal choice for your background screening needs.