If you run a business in Michigan, it’s important to conduct background checks on all applicants.
Background checks help you find trustworthy, qualified employees, increasing your business’s chances of success and growth.
At iprospectcheck, we stay up-to-date with relevant laws and regularly conduct pre-employment screenings for companies in Detroit, Lansing, Ann Arbor, Grand Rapids, Flint, and beyond.
This overview covers everything employers need to know about background checks in Michigan.
Key Takeaways
- An employment background check investigates an applicant’s criminal history, past employment, education, professional license, driving record, and other relevant details to help employers make smart hiring decisions.
- Employers must comply with federal, state, and local laws when they conduct background checks to avoid civil penalties and liability.
- To maintain legal compliance, wait to conduct background checks until later in the hiring process, comply with notice and consent rules, individually assess criminal convictions, and comply with the adverse action process before making a final decision not to hire an applicant based on information in a background check.
What is a Michigan Background Check?
An employment background check in Michigan involves conducting searches of reliable information sources to investigate an applicant’s criminal history, past employment, education, professional license, driving record, and other relevant details.
What Shows Up on a Michigan Background Check?
What might show up on a Michigan employment background check varies based on the types of searches employers request.
Many employers ask for the following searches on background checks:
1. Criminal History
For applicants with criminal histories, you will see the following information on your background check report:
- Criminal case number
- Date of arrest
- Charge(s)
- Disposition
- Date of disposition
- Severity of the charge (misdemeanor or felony)
- Sentence
Employers are not allowed to rely on information about misdemeanor arrests that did not result in convictions.
2. Employment
Employers that request employment verification services from iprospectcheck can confirm where an applicant has worked, his or her dates of employment at each company, and the positions and job titles the candidate has held.
Employment verification can allow employers to check whether their applicants have been honest on their resumes and applications and have the experience they need for their jobs.
Verifying the employment histories of your applicants can help to minimize your risk of negligent hiring lawsuits.
3. Education
Education verification helps employers to confirm that their applicants have the diplomas, certificates, or degrees their positions require.
When you request an education verification report, you will see each educational institution an applicant has attended, their dates of attendance, and the diplomas, certificates, or degrees the applicant has earned.
Verifying the educational information reported by your applicants can help you to ensure that the people you hire are honest and qualified for their jobs.
4. Professional License Verification
Employers hiring for positions requiring professional credentials often ask for professional license verifications.
Professional license verification reveals the following information about a candidate’s license:
- Type of license
- Date of issuance
- License status
- Date of expiration
- Public sanctions/disciplinary action
- License validity
Verifying your candidate’s professional license can confirm if their license is in good standing and that the applicant has the required qualifications to perform the job.
5. Social Security Number Trace
An SSN trace is a starting point for a comprehensive employment background check and is not a standalone search.
This type of search reveals the following information about the Social Security number supplied by an applicant:
- Date the number was issued by the Social Security Administration
- State in which the SSN was issued
- All names that have been associated with the SSN, including aliases and maiden names
- Addresses that have been associated with the SSN
- Date of birth of the individual associated with the number
- The validity of the SSN
An employment background check provider can use this information to identify additional searches that should be conducted.
6. Pre-Employment Drug Screen
Many employers condition offers of employment on passing pre-employment drug screens.
These drug screens typically test for an applicant’s recent use of the following substances:
- Cocaine
- Opiates (heroin, oxycodone, methadone, hydrocodone, etc.)
- Marijuana/THC
- Phencyclidine (PCP)
- Amphetamines/methamphetamines
Pre-employment drug screens only show an applicant’s recent use of one or more of these substances and don’t reveal substance use outside of the testing window for a particular drug.
Important Laws and Regulations
CRAs and employers in Michigan are required to follow all federal and state laws that apply to pre-employment background checks and the information that can be collected and used to make hiring decisions.
If you do not follow the background check laws in Michigan, your company could face fines and lawsuits.
Below, we have included information about some of the most important background check laws that Michigan employers should know and follow.
Federal Laws
At the federal level, the Fair Credit Reporting Act (FCRA) and Title VII of the Civil Rights Act of 1964 are the most important laws covering employment background checks in every state, including Michigan.
FCRA
The federal Fair Credit Reporting Act is a comprehensive law that regulates how consumer information can be gathered and used. It is meant to protect consumers’ privacy in their confidential information and restricts the types of information that CRAs can collect and report. The FCRA also places limitations on employers when they use background check information to make hiring decisions.
Under the FCRA, CRAs are not allowed to disclose arrests older than seven years if they did not lead to convictions. CRAs also cannot report other types of information older than seven years, including civil judgments, civil lawsuits, collections, bankruptcies, and property liens.
These restrictions do not apply when employers are considering applicants for positions paying at least $75.000. Records of criminal convictions are not subject to the FCRA’s restrictions and can be reported no matter how old they are.
The FCRA’s restrictions also do not apply to other relevant background details, including information about an applicant’s prior employment or education. These types of information can be reported regardless of age.
Employers in Michigan that intend to conduct pre-employment background screenings must notify their applicants in writing and secure their written consent before the checks can be performed.
If negative background information is reported on a pre-employment screening report, employers must follow the FCRA’s two-step adverse action procedure before they make an adverse employment decision.
Title VII of the Civil Rights Act
Title VII is an integral part of the Civil Rights Act of 1964, a seminal law that was passed to prevent discrimination against people based on their protected statuses. Title VII forbids unlawful discrimination in the workplace against both applicants and employees. The Equal Employment Opportunity Commission enforces this law and creates regulations under it.
Title VII covers the pre-employment background check process when criminal history information is revealed. According to guidance issued by the EEOC, employers should individually assess conviction information as it relates to the specific job before making a decision not to hire the applicant.
Fair Chance to Compete for Jobs Act
The Fair Chance to Compete for Jobs Act is a fair chance hiring law signed by former President Donald Trump.
This law applies to federal agencies and companies that seek federal contracts.
Under the FCA, federal contractors must wait to inquire about an applicant’s criminal history until after they extend a contingent employment offer.
Federal agencies can’t extend contracts to companies that don’t comply with this law.
State Laws
In Michigan, CRAs must comply with the FCRA and do not have other state law restrictions. Several laws govern how employers can collect and use the information for hiring decisions, however.
Under MCL § 37.2205a, employers are not allowed to rely on arrests not leading to misdemeanor convictions, including recent misdemeanor arrests. However, this restriction does not apply to felony arrests for charges that are still pending.
Under Executive Directive 2019-10, employers in Michigan are not allowed to ask applicants about their salary histories or to conduct searches of databases to try to find this information.
Under MCL §§ 37.271 – 37.278, employers may not ask applicants or employees for their passwords to access their social media sites or personal webpages. However, there might be an exception for an investigation into employee misconduct.
Birthdates to Be Redacted
Michigan employers need to be aware of two administrative orders that will impact the information they can receive on criminal history reports. ADM File No. 2020-26 and ADM File No. 2017-28 were issued by the Michigan State Court Administration Office. Under these orders, date of birth information will no longer be reported on state court records.
The Michigan Supreme Court issued an order on June 30, 2021, delaying the implementation of the administrative orders until Jan. 1, 2022. However, beginning on that date, employers and CRAs will no longer be able to use dates of birth to verify that a criminal record belongs to a specific applicant.
At iprospectcheck, we have identified internal changes and have adopted new methods so that we can continue to provide the most reliable criminal history reports possible to our clients in Michigan regardless of the changes.
Michigan Clean Slate Law
On Oct. 13, 2020, Gov. Gretchen Whitmer signed H.B. 4980 into law. Portions of this law were effective on April 11, 2021.
A provision to automatically seal certain criminal records had a two-year window before its effective date and will be effective on April 11, 2023.
Beginning in April, individuals with up to two felony convictions or those with up to four misdemeanor convictions will have them automatically expunged from their criminal records without having to apply for expungement.
To qualify, they will need to have at least 10 years free from any felony convictions and seven years for any misdemeanor convictions.
People with the following types of convictions will not qualify for automatic expungement under this law:
- Any crime with a potential sentence of 10 or more years in prison
- Human trafficking
- Assaultive offenses
- Crimes involving dishonesty
- Crimes against children, disabled people, or the elderly
- Serious misdemeanors
- Offenses for which expungement or set aside is not available
Those whose convictions are automatically expunged will not have to report them on applications or in interviews.
Employers won’t be allowed to ask about expunged records, and any records that have been expunged won’t be reported by iprospectcheck on employment background check reports.
Michigan Ban the Box Law
Executive Directive 2018-4 is a state ban-the-box law that applies to public employers.
Under this law, public state employers can’t include criminal history questions on job applications and must wait until the interview stage before inquiring about an applicant’s criminal record.
Local Ban the Box Laws
The following cities and counties have local ban-the-box ordinances:
- Ann Arbor– Resolution applies to public employers only and requires them to wait until after a conditional employment offer before checking an applicant’s criminal history.
- Detroit – Ordinance applies to public employers, city contractors, and vendors and removes criminal history questions from applications while requiring them to wait to conduct a criminal history check until after an initial interview.
- East Lansing – Resolution applies to public employers and requires them to wait to check criminal history until an applicant has been determined otherwise qualified.
- Genessee County – Resolution applies to public employers and requires them to wait to check an applicant’s criminal history until after making a conditional employment offer.
- Kalamazoo – Resolution applies to public employers, city contractors, and vendors and requires them to remove criminal history questions from job applications and provides applicants the right to appeal a decision based on criminal convictions.
- Muskegon County – Resolution applies to public employers and requires them to remove criminal history questions from job applications unless otherwise required to ask by law.
How to Get a Background Check in Michigan
In Michigan, you can request name-based criminal history searches through the Internet Criminal History Access Tool (ICHAT) offered by the Michigan State Police.
This report will not contain information about out-of-state convictions or other important information about your applicants’ past employment or educational attainment.
Some employers try to perform searches online. However, the information you might obtain in this way might be incomplete, inaccurate, and not FCRA-compliant or reveal details that you cannot use to make employment decisions.
Trying to submit requests to numerous agencies, employers, and educational institutions may also be time-consuming and not provide you with comprehensive information.
The best method of conducting pre-employment background checks in Michigan is to work with a reputable, full-service, and FCRA-compliant provider like iprospectcheck. We fully comply with the FCRA and provide up-to-date, accurate, and comprehensive background check reports to our clients.
We also offer other important employment-related clinical services, including drug testing.
Best Practices to Ensure Legal Compliance
1. Wait to Conduct an Employment Background Check.
Many local jurisdictions and some states have passed ban-the-box laws. These laws control when in the process employers can ask about criminal history information.
It’s a good idea to wait to ask about criminal history information until later in the hiring process once an applicant has been interviewed.
Even if your city does not have a ban-the-box law, waiting until later in the hiring process can help to save money on background checks while also staying ahead of any laws that might be passed.
2. Disclose Your Intention to Perform Background Check and Obtain Signed Consent.
Before you conduct a background check for employment, you must notify your candidates in writing under the FCRA.
You must also obtain signed consent from each candidate before an employment background check can be performed.
3. Individually Assess any Conviction Record.
If you learn about an applicant’s criminal conviction on an employment background check report, you should individually assess it concerning the duties of the job for which they are under consideration before you make a decision not to hire them.
You should document this individual assessment and keep a copy for your records.
4. Send a Pre-Adverse Action Letter.
When you want to deny employment to an applicant based on information in their background check report, you must send a pre-adverse action letter to the applicant.
Identify the problematic information, and include a copy of the background check report.
5. Give the Applicant a Reasonable Time to Respond.
When you send a pre-adverse action letter, give the applicant a reasonable amount of time to respond with mitigating evidence or information showing that the record is inaccurate.
Typically, five business days is considered a reasonable response time.
6. Send a Final Adverse Action Letter.
If you want to deny employment to the applicant after completing the adverse action steps, send a final adverse action letter.
Include the contact information of the consumer reporting agency that conducted the background check along with a statement that the CRA did not make the hiring decision.
You should also include a copy of the applicant’s rights under the FCRA.
Turn to iprospectcheck for Reliable Background Checks
When you rely on iprospectcheck, you can benefit from our vast resources and extensive access to reliable and current databases. We can quickly gather the information you need to make sound hiring decisions.
Each of our staff members goes through thorough training. They know how to collect and assess crucial background information for applicants. The results we provide are comprehensive, current, accurate, and FCRA-compliant.
Customer service is important to us. We want to make the background check process as smooth as possible for both our clients and their applicants. We are USA-based and never offshore our services. This helps us to protect the privacy of your sensitive data. We are available to answer questions when they arise.
To learn more about the services we provide, contact iprospectcheck today to request a no-obligation, free consultation: (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.
FAQs
How Far Back Does a Background Check Go in Michigan?
The FCRA’s seven-year lookback period governs how far back certain types of information can be reported for applicants.
Information that is seven or more years old about an applicant’s arrests not leading to convictions, liens, civil judgments, collections, civil lawsuits, and bankruptcies will not be disclosed on pre-employment background screens.
However, if you are offering a salary of at least $75,000, the FCRA’s time restriction will not apply. Criminal conviction records can be reported regardless of age.
The FCRA’s time limitation for reporting information does not apply to other important types of background information, including your applicants’ past employment, education, or credentials. These types of information can be reported and used no matter how old they might be.
How Much Does a Background Check Cost in Michigan?
If you order a background check through the ICHAT system, you will have to pay $10 per report. However, this information will not include relevant details about your applicant’s employment and education and will also not include information about any convictions in other states or in federal court.
You might find sites online that promise free Michigan background checks. You should avoid these sites because they frequently return information that is inaccurate, incomplete, and not legally compliant. If you rely on this type of information, you could be sued.
It is a better idea to work with a third-party employment background check provider like iprospectcheck. We are reliable and affordable and offer fully FCRA-compliant background check reports in Michigan. You can tailor the types of information you request so that the reports you receive will only include information that is relevant to your positions.
We offer various packages at different price levels. Employers that anticipate ordering more than 50 background checks per year can benefit from significant volume discounts. Call us today to receive a free quote.
How Long Does it Take to Get a Background Check Completed in Michigan?
How long it might take for you to receive your background check reports will depend on the method you use. If you submit a request to the state police, the information will be provided once your payment is approved.
However, it will not be all of the information you need and could leave out details about convictions in other states.
If you try to conduct background checks by submitting requests to different state agencies and contacting past employers and educational institutions, it can take several weeks to compile the information.
When you instead choose to partner with iprospectcheck, you can benefit from our fast turnaround times.
With us, you can anticipate receiving your pre-employment background check reports within a few hours up to a couple of days.
