Are there any legal restrictions to a Background Check?

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Background checks can feel as if Big Brother from the novel 1984 is watching everything you ever do and never forgets a single mistake you make. In reality, however, there are fairly comprehensive laws on what an employer can and cannot do in the realm of background checks and how an applicant can respond to information that appears on a background check.

The Fair Credit Reporting Act requires employers to tell applicants (and not in the fine print) if it plans to run a background check, and the applicant must provide written authorization for such a search. If a background check returns information that ultimately results in an applicant’s not being hired, the applicant must receive a copy of the background check.

In addition, there is a difference between what can be discovered in a background check and what can be the basis for employment discrimination. For example, an employer can search whether an applicant has ever filed bankruptcy, but it is illegal to discriminate against someone because they have filed for bankruptcy.

There are exceptions to these laws, such as differences in the law depending on whether a company performs a background check in house or whether it hires an outside company to perform the check. In any case, however, it is important that both the employer and employee know what a background check entails. Applicants can order their own background check or contact the Equal Employment Opportunity Commission (EEOC) for information, and employers should contact the EEOC and/or the Federal Trade Commission.



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