What Happens If You Decline A Background Check

In that location are many reasons a job candidate might fail a background check, some more problematic than others. If the candidate failed a background bank check later a job offering, it doesn't necessarily hateful you shouldn't hire them.

Post-obit these five steps will help you lot make an informed conclusion while following your company'southward hiring guidelines and all applicative laws.

Y'all think you've finally found the perfect person for the job. Until, that is, negative results of the background check come through. When an otherwise first-class candidate fails that check, an important decision is alee: accept or decline the applicant.

Understanding why the person didn't pass the background cheque helps you brand an informed decision and ultimately leads you to the best solution for your company. Employment screenings can help protect y'all against everything from unexpected performance issues to risky on-the-chore behavior.

All the same, a "failed" background check, or an alert on the results, doesn't necessarily mean yous shouldn't hire the candidate. When you lot implement the right strategies, under some circumstances, yous can confidently proceed with the offer.

In this article, we'll cover the most common reasons a person may fail a groundwork check. You'll need to act compliantly, stick to your visitor policy, abide by federal also as local laws, and follow essential procedures.

What Are The Reasons For A Failed Background Check?

What causes a ruddy flag on a background check? There are enough of reasons a person may non pass a background bank check, including criminal history, education discrepancies, poor credit history, damaged driving tape, faux employment history, and a failed drug test. We explore each of these reasons here—some are definitely more problematic than others.

Criminal History

Roughly 77 one thousand thousand Americans have a criminal record that must be reported as function of an employment groundwork check, co-ordinate to the National Briefing of State Legislators. Whether yous can hire the person despite his or her record depends on several factors, including industry-specific regulations besides every bit the position he or she is seeking. Under certain circumstances, denying a chore to an private with a criminal history may be considered discriminatory.

Instruction Discrepancies

When a person is struggling to secure employment, the desire to fluff a resume can be intense. An instruction verification background check can identify claims that don't friction match up with reality, including a job applicant's college teaching history. If the candidate didn't attend a specific higher or obtain a degree or document as maintained, you'll want to talk over the discrepancy.

Poor Credit History

Non all background checks include a credit review, and some jurisdictions greatly restrict them. If you lot're allowed to pull the reports, though, and spot high debt, a slew of delinquencies, and collection accounts, you may be concerned near the applicant'southward integrity and fiscal responsibleness, particularly for candidates applying for management or finance positions.

Damaged Driving Record

A motor vehicle written report (MVR) may plow up speeding tickets or other moving violations. When driving is role of the position'south duties, this will be a serious matter. Checking a candidate'southward driving tape may help y'all avoid whatsoever legal and insurance consequences that can arise if the employee were to go into an accident while on the clock or behind the wheel of a company-owned vehicle.

False Employment History

1 in three Americans aren't honest virtually their work experience and dates of employment, co-ordinate to a 2019 GoBanking Rates poll. One of the reasons you wanted the person to come on board may be that piece of work experience. A history of doing the same or similar task at a different company for a sure number of years is attractive, and then when y'all notice that the person wasn't exactly truthful on the resume, you have sound reason to deny employment.

Failed Drug Test

Illicit drug use past employees can exist a major liability. If the results of a pre-employment drug test betoken that the person has used an illegal substance, this could exist grounds for excusing him or her from the pool of prospective employees. Screening policies ensure consistency beyond all new hires, and so if the candidate fails the drug test and hiring is contingent on passing, that person may be out of the running. For candidates using marijuana for medicinal purposes, be certain to discuss with your legal counsel before taking adverse action on the basis of a failed drug examination.

What Practice You Do When Your Candidate Failed Their Background Check?

When reviewing a candidate's groundwork check results to make an informed decision about whether to hire, information technology's of import to follow the law. Review your company's employment screening policy, also as the Equal Employment Opportunity Commission'southward (EEOC) guidelines, and follow adverse action steps as per the federal Off-white Credit Reporting Human activity (FCRA) and local fair run a risk hiring laws, such every bit ban-the-box laws, that may apply.

In the upshot the person failed the background cheque afterward task offer, follow these five steps for an approach that is systematic, articulate, and legal:

Pace 1: Consult Your Policy

Your employment screening policy should outline everything that goes into a background check, including Social Security Number verification, past employment and instruction verification, reference checks, criminal history, motor vehicle records, and (where permitted) credit history. You lot will need to adhere to those terms carefully and as with each candidate.

Pace 2: Ship A Pre-Adverse Action Find

If you're considering not hiring the applicant based on the results of the screening, you'll need to allow that person know with a pre-adverse action notice, along with a copy of the background bank check and a copy of "A Summary of Your Rights Nether FCRA". (Download templates and forms here.) This gives the candidate the chance to review results for accuracy and respond to whatsoever of your questions regarding the data discovered from the report.

Pace iii: Allow Your Candidate To Respond

This is when you lot requite the applicant the opportunity to discuss the issues that the background screening brought to light (five to 10 concern days, depending on your jurisdiction). For instance, information technology'due south entirely possible that the candidate had been a victim of identity theft and thus has a damaged credit history. Or the person has a valid caption for an employment history discrepancy. You lot'll only know when the person tells y'all.

Step 4: Make A Decision

Every bit long every bit y'all stick to your company's policy also every bit employment guidelines set out by the EEOC to deport individualized assessments, y'all're gear up to hire the candidate or not. If you do offering the person the position, you've completed the initial background cheque process.

Pace 5: Transport An Agin Activeness Notice

If you determine to not hire the person because of what you discovered, federal law mandates that you transport a last adverse action letter of the alphabet to the person (some refer to it incorrectly as a "failed groundwork bank check letter of the alphabet"). In it you will explain that the findings of the background check are your reasons for the rejection. Information technology is extremely important that you stick to the letter of the law, especially when the screening pulls upward a record of criminal history, equally it will help mitigate take chances of potential fines and legal activeness confronting your visitor.

Cover of GoodHire guide about what to consider when you decide not to hire.

Bad News, Skilful Solution

A comprehensive employee background check helps yous make informed decisions. While the check may reveal negative items that raise cerise flags, those issues don't e'er demand an immediate hard pass. Base your decisions using accurate data and reliable information; conducting targeted screens and individualized assessments; and encouraging open and honest dialogue with your candidates.

Groundwork checks are indeed vital to hiring high-quality candidates, but the process of getting everything in order can be difficult. It must be washed compliantly and systematically, from when to get-go the bank check and go consent, to understanding what's legal and what's not, and then to effectively manage the terminal determination. This is not the time for errors, and y'all should have intendance to document the process throughout.

To help, GoodHire offers congenital-in tools and capabilities to assist yous manage employment screening hands from start to finish. Every cheque includes online digital consent; an integrated adverse action flow that accounts for federal, country, and local laws for both your and the candidate's locations; and tools for individualized assessments. Because these are inherently complicated matters, it's crucial that you comply with your own policy as well as local and federal restrictions. GoodHire is designed to exercise only that, which makes your job of hiring a qualified candidate easier—and can make a hopeful job applicant who may not accept a clear background bank check very happy.

GoodHire's background check platform makes it easy to order reports and review results.

Disclaimer

The resources provided here are for educational purposes only and do not constitute legal advice. We advise you to consult your own counsel if you accept legal questions related to your specific practices and compliance with applicable laws.

About the Author

Equally GoodHire's managing editor, Sara Korolevich produces educational resource for employers on a variety of employment screening topics, including compliance and screening all-time practices, and writes almost GoodHire's company and production news. Sara's feel stems from 20+ years working as a B2C and B2B PR and communications professional person.