Add to favorites Examiner Bio

California’s employer background check requirements

In California, there are many requirements that must be followed to ensure that businesses are complying with not only California’s “Investigative Consumer Report” (ICR) and Consumer Credit Reporting Agencies Act (ICCRA), Information Privacy Act (CIPA) but also the Federal Fair Credit Reporting Act (FCRA).

The FCRA sets the National Standard for how background checks are processed.  The ICCRA, CIPA and ICR set the standards for the State of California.  Although most requirements have been in place for over 3 years, there are many businesses that fail to follow the appropriate process.   A few of those things that I have noticed during the past year is there are several employers who ask for your social security number and date of birth,“ just in case” an offer is made. However, each individual must understand they have rights, and cannot be required to provide this information until a true offer has been made and they have been made aware that a background check will be conducted.  As, it is up to the employer to ensure each applicant has been advised of their rights within the appropriate time of their hiring process, and this should be built into their hiring policy.

As an employer, it is required that each applicant be provided with written notice of their rights, which describes how California law adds to the rights one has under the FCRA. Further, it explains ones right to get a copy of a background check and what to do if your report includes inaccurate or incomplete information. Employers must be aware of the differences required of them when they use a third party to run backgrounds on their behalf, and when they conduct them internally.  A thorough resource for specifics on requirements for running backgrounds can be found in the Privacy Rights Clearinghouse and Employment Law Information Network's websites.

Applicants must also be given notice on a separate document that a report may be required.   Employers must also acquire permission to run the background of any individual, before the background is ran. It is highly recommended that employers get this permission in writing to ensure they have verification of that permission. Separate permission must be provided to employers for medical information, if required. One’s health information is protected by the Health Information Privacy and Accountability Act (HIPAA). Finally, notice must be provided if an “investigative consumer report” under the FCRA will be conducted. This is where an applicant’s neighbors, friends or associates will be interviewed about one’s character, general reputation, personal characteristics or mode of living.

Some things most employers’ include as a part of a background investigation include credit, DMV, misdemeanor and felony court records. However, employers may also Google or yahoo for “digital dirt.” This will provide information listed on social networking sites and blogs, that may assist in providing insight on applicants. And, the latter can be done without getting the approval of the applicant. Examples of these types of searches can potentially lead employers to MySpace, Facebook, and Sexual Offender sites that provide valuable information on individuals being considered for opportunities within an organization.

Employers are cautioned to minimize the number of staff members who have access to the results of background checks.  This information should be on a "need to know" basis.  Depending on the size of the organization, a manager should not be on that list of "need to know" staff.  Each organization should also understand that the fewer people exposed to this information, the better it is for your business, should a problem arise.  Finally, employers must also be consistent in how they use the results of backgrounds when making hiring decisions.  Failure to follow these simple guidelines can result in fines, penalties and lawsuits that may significantly impact your bottom line.    

For more info: Privacy Rights Clearinghouse and Employment Law Information Network