Employers to seek permission before doing background checks

Background checks are often a condition for hire by most employers. Companies conduct background checks to avoid what they call "bad hires" or people who down the line will lead to some sort of loss or difficulty for the employer. However, according to the U.S. Equal Employment Opportunity Commission, employers are prohibited from using information obtained during such checks to discriminate against the race, gender, age, sexuality, etc of the potential employee.

Organizations conduct background checks to mainly observe two things- Credit activity and Criminal record. The credit checks might be important as argued by many employers to deem a potential employee fit of maintaining certain responsibilities especially if the job involves financial engagement. Criminal background checks determine the legal standing of an employee.

Employers however cannot use this criminal record to discriminate. Fair Chance to Compete for Jobs Act of 2019 will become law in December 2021, as per this federal

agencies and contractors will be prohibited from asking for criminal background information until a confidential offer is made. If after the check the employer decides to revoke the offer, they have to through a series of strict tests. Employers will have to make sure that the procedure for asking for such checks is in line with federal and state rules.

Source: U.S.News