You’ve just finished a pre-employment background check on a prospective employee. But what should you be on the lookout for in the results?
It’s important to identify key issues on a “failed” background check so that you can avoid bringing on board someone who could potentially harm your business, employees, or customers.
As a leading employment background check provider, iprospectcheck doesn’t use pass or fail language when referencing background check results. However, many employers and members of the public do, and employers who receive background check reports containing adverse information frequently want to know how to proceed.
At iprospectcheck, we are dedicated to assisting employers with fair chance hiring and the fair assessment of the backgrounds of their applicants. We provide tools for employers to help them ensure the fair consideration and adjudication of background check reports.
In this article, we guide you through understanding these warning signs so that you can make more informed hiring decisions.
Key Takeaways
- Warning signs on a background check include multiple periods of unexplained unemployment, inconsistent information, short periods of employment, minimal relevant job experience, no required education or training, professional license issues, dangerous criminal convictions, job-related criminal convictions, bad references, poor credit, poor driving record, failed drug screen, and refusal to submit to a background check.
- A “failed” background check contains issues that could negatively affect the company, its brand, customers, or other employees if the applicant is hired.
- Employers must comply with federal and state laws when responding to adverse information from a background check.
13 Common Warning Signs On a “Failed” Background Check
Workplace and Customer Safety
The following issues might implicate workplace safety concerns:
1. Certain Criminal Convictions
Not all criminal convictions will indicate an applicant is unqualified, but certain convictions might warrant further scrutiny, including:
- Assaults
- Domestic violence crimes
- Sexual crimes
- Drunk driving convictions for driving positions
- Violent crimes
- Theft
- Embezzlement
- Robbery
- Burglary
- Murder
2. Poor Driving Record
If you are hiring drivers, applicants with poor driving records could threaten public safety while driving for your company.
Moreover, they might not be insurable through your company’s general liability insurer.
For jobs regulated by the Department of Transportation, employers must confirm the safety records of their drivers for the previous three years.
If the driver’s record is disqualifying, the employer will likely engage in an Adverse Action protocol.
3. Failed Pre-Employment Drug Screen
A pre-employment drug screen checks an applicant for recent use of the following substances:
- THC/Marijuana (where allowed)
- Cocaine
- Opiates/opioids (heroin, oxycodone, hydrocodone)
- Phencyclidine (PCP)
- Amphetamines/methamphetamines
- MDMA
- And others as required
An applicant who fails a pre-employment drug test raises safety concerns.
Reliability, Consistency, and Trustworthiness
The following background check issues can raise concerns about an applicant’s reliability, consistency, and trustworthiness:
4. Multiple Periods of Unemployment
A single period of unemployment is not unusual. People can be unemployed through no fault of their own because of external factors.
However, when a background check reveals that an applicant has multiple gaps in employment, it could indicate the applicant is not reliable or consistent.
5. Inconsistencies in What the Applicant Reported vs. the Background Check
Inconsistencies between what an applicant claims on their resume and what a background check shows may require further explanation.
If an applicant is dishonest about their work history or education, it indicates they might not be trustworthy if hired.
6. Short Periods of Employment
An applicant with a work history showing multiple short periods of employment at each job might not be a reliable choice.
Employers generally want to hire employees they can depend on and who will stay with the company.
Hiring applicants with a documented history of staying at jobs for short periods could lead to higher turnover rates and related costs.
Qualifications and Experience
The following warning signs will likely raise concerns that the applicant doesn’t have the qualifications or experience for the job:
7. Lacking Relevant Past Jobs
An applicant whose employment verifications show that they don’t have relevant past work experience might not be the right fit.
The employer might still review their experience to see if they have transferable skills that make up for the lack of relevant experience.
8. Inadequate Education/Training
Some jobs ask for an applicant to have a degree, diploma, or certificate as a basic requirement, and some applicants claim to have more experience or education than they have to try to gain employment.
If an education verification reveals an applicant does not have a diploma, degree, or certificate needed for the position, the employer may choose to deny employment.
9. License/Credentials Issues
Some jobs require licenses or certifications under state regulations.
If a professional license verification or sanctions check reveals that an applicant’s license or credentials are invalid, expired, suspended, or revoked, they may not be eligible for the position.
Know Before You Hire
Legal Compliance and Liability Risks
The following warning signs raise concerns about legal compliance and liability risks:
10. Job-Related Convictions
A background check that reveals an individual has a conviction that directly relates to the job duties could indicate hiring the individual would place the company at risk of legal liability.
For example, if an applicant has a recent conviction for fraud or theft and has applied for a job as a bookkeeper, the company might not want to hire the applicant because of the risk of potential embezzlement and internal theft.
11. Refusing a Background Check
If an applicant refuses to consent to a background check, it indicates they might have something to hide.
Employers can legally rescind conditional employment offers based on an applicant’s refusal to submit to a pre-employment background check.
12. Poor Credit History or Bankruptcies
Multiple states prohibit most employers from checking or considering credit when making employment decisions.
However, even states that limit the consideration of credit checks for employment typically have several exceptions for certain roles, including in finance, banking, insurance, law enforcement, and positions involving access to the company’s intellectual property or funds.
If the consideration of credit is allowed, indicators of an applicant being in financial distress, including unpaid accounts, a high debt-to-income ratio, recent bankruptcies, and a poor payment history might mean that the applicant could be at a higher risk of committing fraud or theft if hired.
13. Failed Drug Screen
Regulated companies in the transportation and healthcare sectors might be required to conduct pre-employment drug screens before hiring an applicant.
An applicant who fails a DOT drug screen or a pre-employment screen for a job involving access to medications will likely be denied employment.
I Spotted an Issue on a Background Check: What Now?
1. Can Consider the Issue?
Before making an employment decision based on negative information you’ve learned, make sure it’s something you can consider for hiring purposes.
2. Individually Assess Criminal Information.
If the applicant has a criminal conviction, individually assess it as it directly relates to the job the applicant is being considered for.
You should consider how long ago it occurred, any mitigating evidence, and whether it might impact workplace safety as well.
3. Send a Pre-Adverse Action Notice.
If you don’t want to hire the applicant based on the adverse information, send a pre-adverse action notice that identifies the problem. Include a copy of the report where the information appears.
4. Give a Reasonable Time to Respond.
Give the applicant around five business days to respond to the pre-adverse action notice by providing evidence the information is wrong or that they have been rehabilitated.
5. Send a Final Adverse Action Notice.
If you still do not want to hire the applicant based on the negative background check information, send a final adverse action notice. Include a copy of their rights under federal and state law.
It is especially important to make sure that you are following the letter of the Federal, State and Local laws when making an adverse hiring decision based on information found in a background check.
iprospectcheck: Your Dependable Partner for Compliant Background Checks
Employment background checks help employers confirm the people they hire are trustworthy, safe, and qualified.
Knowing what to do when you find adverse information on a background check can help protect your company from making a bad hire that can jeopardize your company’s reputation and create an unsafe work environment.
When you partner with iprospectcheck, we can help you by providing accurate, complete, and compliant background checks.
Call us for more information about background checks and receive a free quote: (888) 509-1979.
DISCLAIMER: The resources provided here are for educational purposes only and do not constitute legal advice. Consult your counsel if you have legal questions related to your specific practices and compliance with applicable laws.
