Template · Policies and handbooks
Background check policy
In short
A background check policy sets which pre-employment screening checks apply to which roles, when they run, how consent is collected, how criminal records and other findings are assessed, and how adverse action is handled. This template follows the FCRA process, uses role-based screening tiers, and builds in individualized assessment and fair chance timing.
Pre-Employment Screening and Background Check Policy template
Pre-Employment Screening and Background Check Policy
Replace each [Placeholder] and adjust the screening tiers to your roles. Add state and local fair chance, credit check and notice requirements for each place you hire, and have employment counsel review before use.
1. Purpose
[Company Name] screens candidates to protect customers, employees and company assets, and to meet legal and client requirements. We screen only for information related to the job, apply the same checks to everyone in the same role, and give candidates a fair chance to respond to anything we find.
2. Scope
This policy applies to all candidates for employment who receive a conditional offer, to current employees moving into a role with a higher screening tier, and to temporary and contract workers placed with us where their agency agreement requires equivalent screening. It does not apply to checks required by a separate regulated program, such as Department of Transportation driver qualification, which follows its own rules.
3. Screening tiers
Each position is assigned a tier by HR with the hiring manager and documented in the job requisition.
- **Tier 1, standard:** identity verification, Social Security number trace, county and statewide criminal records for the past [7] years where the candidate has lived or worked, national criminal database search with county verification, and federal sex offender registry. - **Tier 2, customer data or money:** Tier 1 plus employment verification for the past [3–5] years and highest education or required certification. Credit history only for [specified finance roles] and only where state and local law permits. - **Tier 3, safety-sensitive or vulnerable populations:** Tier 2 plus motor vehicle record for driving roles, professional license verification, healthcare sanction and exclusion list checks, and fingerprint-based checks where state law or a client contract requires them.
Drug testing is covered by the [Drug and Alcohol Policy]. We do not use social media screening to make hiring decisions.
4. Timing
Background checks run only after a conditional offer of employment, and we do not ask about criminal history on applications or in interviews [in any location, even where not required by law]. Start dates are contingent on completion of the check. Recruiters will tell candidates the expected turnaround, normally [3–5 business days].
5. Disclosure and consent
Before ordering a check from a consumer reporting agency, we give the candidate a clear written disclosure, in a document consisting only of that disclosure, that a consumer report may be obtained for employment purposes, and we obtain the candidate's written or electronic authorization. Required state and local notices are provided at the same time. If the check includes interviews with references or others about character or reputation, we provide the additional notice the law requires for investigative consumer reports.
6. Evaluating results
Results are reviewed by [trained HR staff], not by the hiring manager. A record does not automatically disqualify anyone. For criminal history, we consider only convictions and pending charges that are relevant, and make an individualized assessment of:
- the nature and gravity of the offense - the time passed since the offense or completion of the sentence - how the offense relates to the duties of this specific job - evidence of rehabilitation, work history since the offense, and any information the candidate provides
We do not consider arrests that did not lead to conviction, sealed, expunged or juvenile records, or other records that state or local law prohibits us from using. Discrepancies in employment or education history are discussed with the candidate before any decision.
7. Adverse action process
If we are considering withdrawing an offer based in whole or in part on the report, we will:
1. Send a pre-adverse action notice with a copy of the report, the document "A Summary of Your Rights Under the Fair Credit Reporting Act," any notice required by state or local law, and an explanation of the findings of concern. 2. Wait at least [5 business days], or longer where local law requires, for the candidate to dispute the report or provide information about accuracy, rehabilitation or mitigating circumstances. 3. Review anything the candidate submits before making a final decision. 4. If the decision is final, send an adverse action notice that includes the name, address and phone number of the consumer reporting agency, a statement that the agency did not make the decision and cannot explain it, the candidate's right to a free copy of the report within 60 days, and the right to dispute its accuracy or completeness with the agency, plus any state-required content.
8. Current employees
Employees moving into a higher-tier role are screened for the additional checks of that tier. [Employees in Tier 3 roles are rescreened every [2] years, with authorization obtained at hire that covers the period of employment, where permitted.] Employees in [Tier 3 roles] must tell HR within [5 days] of any criminal charge or conviction, or loss or restriction of a required license, that relates to their duties.
9. Confidentiality and retention
Background reports are confidential. They are stored separately from personnel files, accessed only by HR staff who need them, and kept for [the period required by law and at least as long as any related claim could be brought, typically [X] years], then securely destroyed. Reports are used only for the employment decision for which they were obtained.
10. Vendors and international checks
We use [Screening Provider], a consumer reporting agency that certifies its compliance with the FCRA. Checks for candidates who lived or worked outside the US follow the laws of those countries, which may limit what can be checked and require separate consent. Questions about this policy go to [HR contact]. Effective date: [Date].
How to use this template
- List your job families and assign each to a screening tier, writing down the business reason for each check.
- Map the fair chance, credit check and notice rules for every state and city where you hire, and add them to the tier rules.
- Move all criminal history questions out of applications and interviews and set the check to trigger only after a conditional offer.
- Configure your screening vendor's standalone disclosure and authorization forms, and test the candidate flow on a phone.
- Write an individualized assessment worksheet for reviewers so decisions are consistent and documented.
- Build the pre-adverse and adverse action letters with the required attachments and set reminders for the waiting period.
- Audit a sample of files each quarter for consent, timing and adverse action compliance.
What the policy needs to settle
A background check policy answers four questions before they come up in a live case: what do we check for each role, when do we check, how do we judge what we find, and what do we tell the candidate. Leaving any of those to individual recruiters is how companies end up running credit checks on warehouse pickers or withdrawing offers over a 15-year-old misdemeanor without telling the candidate why.
The template ties checks to tiers so screening is relevant to the job, which is both fairer and cheaper. Consent is collected with a standalone background check authorization form, and if you withdraw an offer you use a compliant adverse action notice. Reference this policy from your recruitment policy so hiring managers know screening is HR's decision, not theirs.
The FCRA in plain terms
When a third-party screening company prepares a report, the federal Fair Credit Reporting Act applies. Four steps matter most:
- Standalone disclosure. The disclosure must be clear and in a document consisting solely of it. Adding liability waivers or state notices crammed into the same paragraph has led to many class actions.
- Written authorization before the report is ordered.
- Pre-adverse action notice with a copy of the report and the Summary of Rights, then a real waiting period. Five business days is a common practice; some cities require more.
- Adverse action notice with the agency's details and the candidate's dispute rights.
The FCRA also limits what agencies report: arrests that did not lead to conviction and other adverse items older than seven years generally cannot be reported for jobs paying under $75,000 a year, though convictions can. Several states go further.
Criminal records and fair chance rules
The EEOC's 2012 enforcement guidance warns that blanket exclusions for any criminal record can have a disparate impact by race and national origin under Title VII. It points employers to three factors (nature and gravity of the offense, time elapsed, and nature of the job) and an individualized assessment, which section 6 of the template follows.
Ban-the-box and fair chance laws now cover private employers in many states and cities. California's Fair Chance Act, for example, bars employers with five or more employees from asking about conviction history before a conditional offer, requires a written individualized assessment, and gives candidates at least five business days to respond to a preliminary decision. New York City, Los Angeles County, Philadelphia and others have their own rules, some with specific forms. The simplest approach for a multi-state employer is to apply the strictest timing everywhere. Federal contractors are also covered by the Fair Chance to Compete for Jobs Act of 2019. More on the approach in our fair chance hiring entry. Rules vary by state, city and country.
Speed and drop-off in high-volume hiring
In hourly hiring the background check is often the longest wait between offer and start, and candidates take other jobs while they wait. A contact center that needs 30 agents in a class on Monday and makes 40 offers can lose several to a seven-day county court search in one slow jurisdiction.
What helps: send the consent link with the offer so the check starts the same hour, choose a vendor with direct court access in your main counties, agree service levels for turnaround, and keep candidates warm with status updates. Let candidates start training on a contingent basis only where your counsel and client contracts allow it. When the check clears, tell them quickly; when it raises a concern, start the pre-adverse action email process the same day rather than letting the file sit.
Common mistakes
- One check package for every role, regardless of risk.
- Disclosure forms that bundle a liability release with the FCRA notice.
- Skipping the pre-adverse action step because "the candidate obviously failed."
- Using arrest records, or records a state says cannot be considered.
- Letting hiring managers see the full report.
- Credit checks in states or cities that restrict them, such as California, Illinois and New York City.
Frequently asked questions
What should a pre-employment screening policy include?
Which checks apply to which roles, when checks run, how disclosure and consent are collected, how criminal history and other findings are assessed, the adverse action steps, rules for rescreening employees, confidentiality, retention and the screening vendor used.
When should a background check be done in the hiring process?
After a conditional offer. Many fair chance laws require that timing for criminal history, and it keeps the decision focused on whether a specific record matters for a candidate you have already chosen.
Can an employer have a background verification policy that excludes anyone with a record?
Blanket exclusions are risky. EEOC guidance says they can cause disparate impact discrimination, and many state and local laws require an individualized assessment. Some roles have legal bars set by statute, which should be listed in the policy.
How long does a pre-employment background check take?
Typically two to five business days for standard criminal and identity checks. County court searches, education verification and international checks can take longer. Choose a vendor with direct court access where you hire most.
Do you need consent to run a background check on current employees?
Yes, if you use a consumer reporting agency. The FCRA requires disclosure and written authorization. Some employers get authorization at hire that covers checks throughout employment, where state law allows it.
How long should employers keep background check reports?
Federal EEO rules generally require keeping hiring records for at least one year, and longer for some federal contractors. Many employers keep reports for several years to cover limitation periods for FCRA and discrimination claims, stored separately from personnel files.