Hiring the right people starts with trust, but it’s smart to verify. Background checks can help you confirm candidate information, avoid costly mistakes, and keep your workplace safe. But doing it right means more than just running a quick report.
Here’s a simplified, practical guide to help you handle background checks legally and effectively without slowing down your hiring process.
Match the Check to the Job
Not every role needs the same type of screening. A delivery driver? Check their driving record. A finance manager? A credit check may be justified. But a graphic designer? Probably not.
Ask yourself: What info directly relates to the role’s responsibilities or risks? Tailoring your background checks saves time, money, and keeps you on solid legal ground.
Know the Laws (Yes, There Are a Lot—And Timing Matters)
Background checks are governed by a mix of federal and state laws, and it’s important to understand your responsibilities before you dive in.
At the federal level, the Fair Credit Reporting Act (FCRA) requires you to:
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Notify the candidate in writing that you plan to run a background check
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Obtain their written permission
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Provide a clear, step-by-step process if something concerning appears on the report
If the background check reveals potentially disqualifying information, the FCRA also outlines when and how you must communicate that to the candidate. Specifically:
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You must give the candidate a pre-adverse action notice, which is essentially a heads-up
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They get a chance to respond or explain
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Only after that can you send an adverse action notice if you decide not to hire
This step is easy to overlook, but it’s a legal must-do. Build this timing into your hiring workflow and set candidate expectations up front so the experience stays professional and respectful.
At the state level, laws can vary significantly. For example, in Massachusetts, if you conduct five or more criminal background checks annually, you’re required to have a written Criminal Offender Record Information (CORI) policy. This policy must explain how applicants are notified of potential adverse decisions and what their rights are.
Also, thanks to “ban the box” laws, you may not be allowed to ask about criminal history until later in the hiring process. These laws aim to ensure that qualified candidates aren’t unfairly eliminated early on due to a past record.
Even if something serious shows up, you can’t automatically reject a candidate. The Equal Employment Opportunity Commission (EEOC) requires you to consider:
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The nature of the offense
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How long ago it occurred
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Whether it’s relevant to the role
Pro tip: Create a simple policy that outlines which types of convictions would disqualify someone from specific roles. Apply it consistently and always double-check local laws before screening.
References Still Matter
Sure, background checks are helpful, but don’t skip the old-school reference call. Former managers can offer insight into a candidate’s work ethic, attitude, and reliability—characteristics no report will show. Try to contact supervisors directly, if possible, rather than going through HR. Have a few targeted questions ready to keep it relevant and professional.
Only Verify What’s Essential
Before you order that credit check, ask: Is this really necessary? Use them only for roles where financial trust is key, like handling money or sensitive accounts.
And if a position requires a specific degree or license, don’t just take their word for it. Verifying credentials avoids messy issues later on. Many candidates do exaggerate qualifications, and third-party services make this process painless.
Don’t Just Toss Those Reports
Background check reports contain sensitive data and you can’t just toss them in the trash. Federal law requires secure disposal such as shredding, burning, or securely deleting the report. Train anyone handling these reports to follow the rules and create a simple retention and disposal policy.
Know When to Call in the Pros
Background check compliance can get messy, fast. That’s why many businesses partner with professional background screening companies. They know the laws, help you stay compliant, and save you valuable time. Look for a provider that explains their process clearly, supports your industry, and offers guidance rather than just sending you a report.
Hiring with Confidence Starts with Commonwealth Payroll & HR
Finding the right talent doesn’t have to be complicated. With Commonwealth Payroll & HR’s Attract & Hire platform, you get powerful hiring technology to help you source, screen, and select best-fit candidates, faster.
Need background checks or skills assessments? We’ve got that covered too, with optional integrations tailored to your process. And if you hit a snag, our dedicated Customer Service & Support Specialists are just a call or click away, because you shouldn’t have to navigate hiring alone. Ready to simplify and strengthen your hiring process? Let’s talk.
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