Failed Background Checks: What Does It Mean?

Failed background checks refer to circumstances in which a candidate does not meet the employer’s screening requirements because of problems found during the verification process. It includes things like mistakes in a person’s work history, criminal records, falsified educational records, poor credit, or negative references. Employers use background checks to assess a candidate’s qualifications and overall suitability for a job. A failed background check raises questions about the candidate’s honesty or suitability for the job requirements. When a candidate fails a background check, it may lead to the candidate being disqualified from the hiring process or being subjected to further assessment before a hiring decision is made.

What Is A Failed Background Check?

A failed background check occurs when the information found during the screening process does not meet the employer’s standards or expectations, such as discrepancies in the work history, criminal convictions, falsified educational records, or poor references. The failure signals that the applicant falsified their skills or is a danger to the company. Employers rely on their company’s background screening guide to ensure that an applicant’s profile is complete and accurate. If any red flags are found, the hiring decision is revoked, put on hold, or reconsidered.

What Are The Common Reasons For Failed Background Checks?

The common reasons for failed background checks are listed below.

Criminal History: An individual’s past convictions or legal issues can raise red flags for potential employers, especially if they are related to the job’s duties or safety standards.
Inaccurate or Misleading Information: Including false information on a resume or application, such as exaggerated job titles, inaccurate dates, or fabricated qualifications, will result in immediate disqualification.
Poor Employment History: Uneven employment, frequent job changes, or negative reviews from past companies are all signs that the person may not be reliable or is experiencing difficulties with their work.
Failed Drug Test: People who test positive for illegal or restricted drugs are disqualified, especially for jobs that require ensuring safety, following regulations, or government employment.
Driving Record Issues: Traffic violations, such as DUIs, license suspensions, or multiple tickets, can disqualify candidates from jobs that involve transporting goods and people.

Does A Failed Drug Test Show Up On a Background Check?

No, a failed drug test does not show up on a background check. Background checks typically focus on factors such as criminal records, proof of employment, education, and credit reports. However, drug test results are kept separate and protected by privacy laws, including the Health Insurance Portability and Accountability Act (HIPAA). The employer simply chooses not to continue with the hiring if a candidate fails a drug test as part of the hiring process.

How Does A Failed Background Check Affect The Hiring Process?

A failed background check can affect the hiring process by stopping or canceling a job offer if the results reveal problems or red flags. It includes things like criminal convictions, fake credentials, or a bad work history that make employers rethink the candidate’s suitability or look at other candidates. Background checks are a crucial step in determining trustworthiness and ensuring that a candidate’s history and job expectations are compatible, as outlined in the guide to hiring.

Does Failing Background Checks Disqualify Candidates?

Yes, failing a background check could disqualify candidates from employment, depending on the nature of the results and the employer’s rules. Employers use background checks to verify a candidate’s identity, criminal history, job history, and other relevant information. The candidate is rejected if the background check reveals errors, criminal offenses, false information, or other issues that conflict with the job duties or company policy.

Can A Failed Background Check Be Disputed?

Yes, a failed background check can be disputed if the applicant believes the information is incorrect or incomplete. Individuals have the legal right to a copy of their background check record and must be informed of it before an adverse employment decision is made based on it, according to the Fair Credit Reporting Act (FCRA). They are entitled to challenge any inaccurate information with the background check company, which is then required to investigate and correct any mistakes within a reasonable timeframe.

Do Employers Contact Candidates If They Fail A Background Check?

Yes, employers do contact candidates if they fail a background check, particularly if the report’s findings are the reason why the candidate was not hired. Employers are legally required to provide candidates with a pre-adverse action notice that includes a copy of the background check report and a summary of their rights under the Fair Credit Reporting Act (FCRA), allowing the candidate to review the report and challenge any errors. Only after the process is complete does the company take adverse action, such as withdrawing a job offer.

What To Do After A “Failed” Background Check?

Steps to take after a failed background check include the employer providing the candidate with a pre-adverse action notice, which includes a copy of the background report and a summary of the candidate’s rights under the Fair Credit Reporting Act (FCRA). This notice gives the candidate the opportunity to dispute or clarify any errors. The employer will proceed with a final adverse action notice to officially end the hiring process if the candidate does not dispute the results or if the problems are still not fixed. It is essential for the candidate to read the report, contact the screening agency if there are any mistakes, and gather evidence to support any claim or explanation.

What Is The Legal Consideration Of a Background Check?

The legal considerations of background checks are listed below.

Compliance with FCRA (Fair Credit Reporting Act): Employers must follow FCRA rules, which stipulate that they need to obtain permission from the candidate before conducting a background check and must notify the candidate if they are fired due to the results.
Adherence to EEOC Guidelines: Background checks must not be used to discriminate against individuals based on their race, color, national origin, sex, religion, disability, or age, as per EEOC rules.
Candidate Consent and Disclosure: Employers are legally required to inform candidates that they will be subject to a background check and must obtain their written consent beforehand.
Proper Use and Disposal of Information: Any information gathered must only be used to inform hiring decisions and must be kept secure, with sensitive data disposed of properly to prevent misuse or privacy breaches.
State and Local Laws: One of the key background check legal considerations is compliance with state and local laws. Some places have extra rules, like “ban-the-box” laws that limit when and how companies ask about criminal records.

How Shield Screening Can Assist With A Failed Background Check

Shield Screening can assist with a failed background check by giving both employers and candidates accurate, FCRA-compliant reports, clear communication, and dispute resolution support. Shield Screening can assist companies in following regulations by sending pre-adverse and adverse action notices, providing candidates with access to their report and instructions on how to dispute inaccurate or outdated information when a background check yields negative resultsThe clear and efficient process ensures compliance and supports fair candidate evaluation, making Shield Screening a valuable partner in handling adverse background check results.