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Are Your Company’s Background Checks FCRA Compliant?

May 09, 2016

Background checks are a company’s first step in evaluating an employee’s suitability for a position. In recent years, instant online background checks have become more and more popular. The problem is that instant online background checks are convenient, but they’re not always reliable. As you know, one bad hiring decision can cause enormous financial and legal consequences. So what’s a company to do if their HR department doesn’t have the resources for an in-depth background check?

Perils of Online Background Checks

The main issue with the “instant” model of an online background check is that it, by definition, can only search records that are digitized and available online. While electronic record-keeping is becoming increasingly common, not all areas or jurisdictions have made the leap. Furthermore, many county courthouses that do keep digital records require that they be accessed via the in-house computer terminal. If a potential employee was arrested or convicted in one of these regions, the record won’t be shown on an online search.

An online background check doesn’t just miss crucial information: it often throws up false red flags. Many online background check services rely on databases that were provided as-is that have not updated since the initial purchase. This means that expunged records or acquittals will be flagged as active cases. Much of the information you’re receiving could be months or even years behind!

The Better Option: FCRA Compliant Background Checks

The Fair Credit Reporting Act (FCRA) governs pre-employment screening at the national level, but only when it’s conducted by third-party companies like All American Document Services. If your HR department is performing the screening, FCRA rules are not mandatory. Interestingly, well-staffed HR departments are now performing pre-employment screenings under FCRA rules to ensure thoroughness, performing searches of criminal and civil court records and past employment driving records, and verifying education, professional licenses, and professional references.

Working with All American Document Services

Most important records are available and accessible to the public, but not all records are easy to locate. For example, sealed files and purged reports are accessed only via a clerk for a fee. Our researchers go above and beyond, working at the county, statewide, and federal level to retrieve all pertinent information to provide:

  • County, State and Federal Criminal Records Searches
  • Commercial Drivers Record Searches
  • Driving Records Reports from the DMV
  • Education Verifications
  • Previous Employment Verifications
  • Personal & Business Reference Checks
  • Professional License Verifications
  • Social Security Traces

For more information on how All American Document Services gives employers, corporations, legal professionals and real estate professionals the power of rapid and accurate due diligence, please visit our homepage today!

Image courtesy of Mark Van Scyoc/ Shutterstock.com

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