How To Deal With a Background Check Dispute

Employers rely on background checks to reveal the most reliable information about a candidate. But mistakes and errors do happen. And naturally candidates want to resolve these errors once your search uncovers them. 

The FCRA (Fair Credit Reporting Act) guarantees consumers the right to dispute the results of a background check. What is your role as the  employer in all this?

There are several steps you must take when a candidate disputes a background check. We’ll describe them here.

Document Your Process

Statistics show that about 30% of the population has a criminal history. What does this mean for you as an employer? It means that if you haven’t yet encountered a problematic background check, it’s just a matter of time.

Before anything happens, make sure that your company has written documentation of the steps you will take in the event of a background
check dispute. Each step, from notification of the dispute right up until your final determination about employment should be clearly spelled out in company policy.

This documentation protects you in a number of ways. It ensures that you can handle the dispute in a manner compliant with the legal demands of the Fair Credit Reporting Act (FCRA). And it removes any possible bias within your hiring practices by providing a consistent guideline to follow in each case.

Follow the Correct Process For Taking Adverse Action

In most companies, by the time you get to the background check stage, you’ve probably already made a conditional offer of employment. If you do find disqualifying information in the background check, remember that you cannot legally rescind this job offer right away. The FCRA entitles everyone to due process if a background check results in an adverse action. It requires you, as the employer, to give the candidate  a copy of the background check which led to the decision, a copy of their rights, and the name and contact information for any third-party reporting agency you used.

Understandably, some candidates may react in a sad or even an angry way when confronted with this information. Don’t take this to heart. It’s still in everyone’s best interest to maintain open lines of communication throughout the process.

Give the Candidate Time To Respond

The candidate must be given adequate time to review the results and to respond. The length of time you give will vary depending on state and local laws and the requirements of your industry. It is up to the candidate to initiate a dispute if they believe there are any inaccuracies in the report. Once this amount of time has elapsed, the ball is back in your court. You can opt to rescind the job offer; but just make sure that you send an additional written notice to the candidate about the adverse action. Alternatively, if the candidate disputes the report, you can wait for a
re-investigation. The candidate will lodge their dispute with the consumer
reporting agency that found the information. In addition, the job seeker may choose to directly contact institutions in question (i.e., the college
registrar, the Consumer Reporting Agency, and previous employers) to rectify any misinformation.

Fortunately, if you use Veriswift, we can accomplish this re-investigation smoothly so that you don’t have to do anything.

It can be disturbing to employers and candidates alike when a background check report contains errors. But by having a plan in place you can still feel confident that you are accessing the most reliable information about your candidates.