Background check in the USA

What are the Benefits of Background Checks in the USA?

As an employer, you have a legal obligation to protect your business, staff, and customers from any foreseeable act of an employee. 

When an employee or volunteer commits a crime while on the job, your organization will assume liability for their actions; this is why running a background check before onboarding is so important. 

Without it, you can end up in a negligent hiring situation and incur expensive lawsuits due to poor hiring practices. 

Another main advantage of USA background checks is that it reduces staff turnover. An employee screening gives you a complete picture of the candidate. 

You get to judge their personality and how well it goes with your organization’s culture. Furthermore, employees connected to their companies are less likely to leave. This means reduced risk of unwanted turnover.

Now, let’s look at what background checks do employers use.

What are the Types of Background Checks in the USA?

Moving on, when hiring international employees from the USA, here are some of the most common background checks you can run. 

1) Criminal record check

• As an employer, you can ask your job candidate to procure a ‘certificate of good conduct’ or proof that they do not have a criminal record.
• The easiest way to achieve this document is by visiting the local police department. However, please note that the person may be required to be physically present to request a background check.
• In most cases, the officials will send a document showing that the individual has no criminal history. 
• Another way to conduct US criminal checks is through an FBI Records Check. To obtain the FBI Identification Record or prove that no records exist, the person must provide a written application and proof of identity, which must be submitted to the CJIS (Criminal Justice Information Services) division.
• Criminal history information can also be obtained through court records, registries/watch lists, and state criminal record repositories.

2) Employment history check

• An employment history check verifies a job applicant's past work history. It helps employers confirm the information the individual provides in their resumes and applications.
• During an employment history check, the employer usually asks for details about the dates the person was employed, their job titles, reasons for leaving, and so on.
• Generally, an employment verification checks an individual's three to seven years of work history.

3) Medical screening

• Employee medical screenings are commonly performed to assess the overall well-being of a worker.
• It typically focuses on potential physical, mental, and fitness issues that hamper employee job performance assessments. These assessments can include anything from self-reported surveys and medical checkups to customized diagnostic tests appropriate for the nature of work.
• A medical screening is especially important in the USA for employees who work in industries where exposure to certain occupational hazards is quite common.
• However, medical screening in the USA is restricted by certain laws. For example, employers cannot ask disability-related questions or conduct medical examinations before giving the applicant a conditional job offer.

4) Credit history check

• A credit report lists a potential employee's financial history. It includes information about lawsuit records, bankruptcy history, bill payment history, loans, and other types of verification that help employers understand an individual's financial responsibility and integrity.
• Employees in the USA can obtain an annual credit report for free from the AnnualReportCredit.com.

5) Education history check

• An education history check helps employers guarantee that the job applicant has the necessary skills and qualifications.
• During such checks, the employer may ask for certain information, such as the name and location of the educational institution, date of graduation/attendance, name of the degree acquired, registration number, and so on.
• The employer may contact the educational institution directly and verify all these details through email, phone, or online verification systems.

6) Social media check

• A social media check is when the employer thoroughly evaluates an employee’s social media and web presence.
• It is commonly performed to ensure that the new hire is the right person for the job and the right fit for the organization.
• Employers generally look for certain red flags, like racist/sexist comments, explicit content, or violent behavior/language, during a social media check.

Requirements for Background Check in the USA

Some of the most common documents that are usually required during an employee background check in the USA include,

• Identity proof: Passport, driver’s license, birth certificate, etc.
• Copies of final year mark sheet, provisional degree certificates, and other achievements.
• Previous company’s offer letters, payslips, or experience letters.
• Court records and police verification
• Credit reports.

Steps in Conducting Background Checks in the USA

There are four main steps that you must follow when running USA background checks. They are,

• Disclosure to the candidate: Make sure to inform your employee beforehand before you proceed with any type of background check in the USA. Cleary communicates the purpose and outcome of the screening process.
• Consent: Obtain explicit consent from the employee, preferably in writing, before conducting a background check.
• Investigation: Once both these boxes have been checked, gather the essential documents as discussed above. Conduct the investigation and compile a report. ‍
• Review: Carefully review the report and look for any red flags. If the provided and verified information match, inform the candidate accordingly. Then, you can begin the onboarding process.

Are Employee Background Checks Legal in the USA?

Yes, running a background check for employees in the USA is completely legal as long as you comply with the requirements set forth by the government. 

For example, you cannot conduct a background check or use the information to deny equal employment opportunity to anyone. 

Additionally, when taking any adverse action based on the information obtained from the verification, the Fair Credit Reporting Act has some extra requirements, like

• The employer must provide a copy of the consumer report they use, as well as a copy of ‘A Summary of Your Rights under the FCRA’ to the employee before taking any adverse action.
• The employer must give the job applicant advance notice so that they can review the report and explain any negative information.
• The employer must inform the employee orally, in writing, or electronically after taking an adverse employment action.

Planning to Hire in the USA? Here’s how Skuad can Help

Skuad’s global EOR solutions help you easily hire anywhere, from any part of the world. We handle everything from onboarding, payroll, employee benefits, and more. This also includes running efficient background checks on prospective employees. 

With our automated solutions, you request the kind of check you need. We will handle everything from there. We will collect the necessary information on your behalf, verify it, and provide you with the results. This will save you time and energy and reduce the chances of manual error. 

The best part is that we will ensure you are 100% compliant with all the US rules and regulations during this process. 

So, book a demo with us today and get started with a seamless and efficient hiring process only with Skuad!

FAQs

1: What does a background check show in the USA?

Depending on the type of check, an employee screening usually reveals information about a job candidate’s past work experience, criminal history, credit history, and education history, among others.

2: What is a red flag on a background check?

Some of the most common red flags in a background check in the USA are inconsistencies in degree titles, attended schools or colleges, poor credit history, and other such issues.

3: What is the most common background check for employment?

Criminal record checks are among the most common types of employee screening. They help reveal information about a job applicant’s past convictions or any other detail that can affect their suitability. Also, if you’re thinking - “can background check show previous employment?”, the answer is yes.

4: How much does a US background check cost?

The cost of US background checks usually depends on various factors. These include the type of employee screening you want, the number of employees on whom you want to run a search, or the method itself (in-house or through a third-party service provider).

5: What disqualifies you from a federal background check?

Felony convictions, dishonesty, drug use, and poor credit history are some of the many factors that can disqualify a candidate from passing a federal background check.