Best Practices for Staffing Industry Background Checks

Staffing agencies cater to clients across diverse industries and are required to promptly fill the requested positions to avoid losing the client, irrespective of their sector. Therefore, it is imperative for these agencies to prioritize speed, especially when conducting background checks. However, it is equally important for staffing agencies to strike a balance between speed and assuring clients of sufficient risk mitigation, which necessitates continuous development and modification of their background screening processes to keep up with the demand.

Create a Background Screening Policy

A background screening policy is essential to conducting screenings as an individual company or staffing organization. The policy should define the type of information that will be collected, the purpose for which it will be used, and how decisions will be made based on the information. Additionally, the policy should outline how the information will be stored, accessed, and shared, and should designate responsibility for each stage of the process.

Follow Disclosure Laws

The Fair Credit Reporting Act (FCRA) governs the proper conduct of background checks. Essentially it aims to protect employees and applicants by ensuring they give their consent and are properly informed before any background check is carried out. They have established very detailed guidelines for the requirements of this disclosure.

Standardize Adverse Action Notices

When results in a background check lead to not hiring or any adverse action, the FCRA has strict procedures to how this process must play out. The adverse action notice, which is sent to the employee or applicant before any action can be taken, must be issued adhering to FCRA’s strict guidelines. The Pre-adverse action and the adverse action each have their own set of rules regarding timing, content, and supporting documents. It’s important these procedures and templates are established company-wide to ensure notices are sent on time and in compliance with guidelines. There are countless lawsuits that highlight the significance and potential costs for failing to comply with these requirements.

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Stay Up-To-Date On Changing Laws

Laws affecting employers and the background screening industry specifically are ever evolving and constantly being updated and added to. It’s important to ensure your organization stays informed of these changes to remain compliant in both state and federal laws. Working with a background screening partner like JDP is the best way to stay compliant on the news and laws that affect your organization(s) specifically.

Hire The Right Background Screening Partner

The partner you choose to run your background checks is the most essential part of your pre-hire process as it will dictate how quickly, accurately, and compliantly you will be able to onboard new candidates. The right partner will work to meet the agency’s needs, which can vary based on their clients. As such, the right provider will be flexible, consistent, and ensure risk mitigation while providing quick results. They’ll inform you of the changing laws affecting your screenings and offer the expertise your team needs to efficiently run pre-hire checks.

Disclaimer: Information provided here is for educational and informational purposes only and should not constitute as legal advice. We recommend you contact your own legal counsel for any questions regarding your specific practices and compliance with applicable laws.

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