​Background Check Lawyers - OVERVIEW OF BACKGROUND CHECKS IN EMPLOYMENT

BACKGROUND CHECK LAWYERS IN MICHIGAN

Understanding The Importance of Background Check Reports in Employment
Background check reports play a crucial role in evaluating the suitability of potential candidates during the employment application process. Background check reports provide employers with information pertaining to an individual's past employment history, criminal records, and educational background. This is especially important for employers who hire employees that interact with the public or minors, such as Uber or Lyft drivers, school staff, and other employees who interact with the public.  This is also important for positions that require a high level of trust, such as banking or positions where the employee will be handling large or moderate sums of money. By verifying the information provided by applicants and uncovering any discrepancies or red flags, employers can protect their organizations and the public from potential risks and liabilities.

Employers must be careful to ensure that they follow reasonable hiring, screening, and retention policies to not only protect the safety of others, but also to protect the employer in the event of a lawsuit. 

By reviewing an applicant’s background check report, employers can make more informed decisions during the hiring process. 

Components Of A Background Check Report
A typical employment background check report includes various components such as employment verification, education verification, criminal record checks, credit history checks, and reference checks. Each of these components helps the employer evaluate the candidate's background and qualifications.

Therefore, it is essential to ensure that you have an accurate background check report.  Background check errors can cost you a job or housing. A good background check attorney can help you dispute background check errors and may also be able to help you recover damages if you were denied employment or housing because of background check errors.

EMPLOYMENT BACKGROUND CHECK LAWS

Ensuring Compliance with Legal Regulations
Employers should conduct background check reports in compliance with legal regulations to protect the rights and privacy of applicant candidates. Adhering to federal and state laws governing background checks ensures that the application process is conducted fairly and transparently, without violating the applicant’s rights or privacy laws.  
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Fair Credit Reporting Act Background Checks
The FCRA governs employer background checks and addresses background check errors.
Before the background check report:
Applicant Consent For Background Check Report:
Prior to conducting a background check, employers must disclose in writing to the applicant that the employer may conduct a background check which could affect the employer’s employment decision.  The employer’s disclosure must be conspicuous and presented on its own (i.e., not in a bundle of documents).
The applicant must agree in writing to the background check.
Certification To Background Check Comnpany
The employer must certify to the background check company that the employer: 

1. notified the applicant ad obtained the applicant’s permission for the background check report, 
2. the employer complied with all the FCRA requirements; and 
3. won’t discriminate against the applicant or misuse the information in violation of federal or state equal opportunity laws or regulations.

Note on Michigan Background Check Laws: Under Michigan law, employers may not ask an applicant about a misdemeanor arrest that did not result in a conviction. Employers may ask about felony or misdemeanor convictions or felony arrests which did not result in a conviction.
 
After The Background Check Report
Before taking adverse action, an employer must provide the applicant with written notice that includes a copy of the background check report that the employer relied upon to make its hiring decision, as well as a copy of "A Summary of Your Rights under the Fair Credit Reporting Act." 
By providing the aplicant the notice in advance, the applicant has an opportunity to review the background check report and explain any negative information or address any background check error.

If a background check leads to an adverse decision against hiring an applicant, an employer must notify the applicant that the applicant was rejected because of information in the background check report. The employer must also provide the applicant with the name, address, and phone number of the background check company that issued the report, as well as an explanation that the background check company that sold the report did not make the hiring decision and is unable to provide specific reasons for the employment decision.

The applicant must also be informed that the applicant has the right to dispute the accuracy or completeness of the background check report, and to get an additional free report from the background check reporting company within 60 days.

Conclusion
Background check reports play an important role in the employment process by providing employers with a way to screen candidates and to assess a candidate’s qualifications.  By conducting thorough background checks, employers can make informed hiring decisions while minimizing the risks and liabilities.  However, background check errors are not uncommon, so it is important for applicants to review their background check reports and to speak to a background check lawyer if you were denied employment because of background check errors. 
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WHEN TO SPEAK TO A BACKGROUND CHECK ATTORNEY

If you were denied employment because of background check report errors, you should speak to a background check attorney to help you dispute those errors and to seek relief in accordance with consumer protection laws.  You. may be entitled to compensation and damages if you were denied employment because of errors in your background check report. 

Attorney Nick Hadous is an accomplished litigator and author in consumer protection litigation. He serves on the Litigation Advisory Board for the Institute of Continuing Legal Education (ICLE) where he is a content contributor and author in consumer protection litigation.  If you were denied employment or housing because of a background check error, our Michigan background check lawyers can schedule you for a free phone or Zoom consultation.  ​Please contact us by using our contact form below. ​