By Kristen Wakulchuk


There’s a lot to know about conducting candidate and employee background checks. As you work with your screening provider, it helps to beef up your “vocabulary words” and have a better understanding of industry terminology.  

So here’s a basic primer to get you started on a few key terms 

    • Adverse action: This refers to any negative employment-related action taken as the result of screening, such as not hiring an applicant or not promoting or retaining a current employee.  
    • Credit report: This consists of a person’s credit history, including liens, bankruptcies, and other actions. Credit reports are prepared by credit bureaus or their agents. A person may contest credit information if they feel it is inaccurate by contacting a credit bureau.  
    • Consumer Reporting Agency (CRA): This bureau gathers and provides information about individuals and provides it to creditors, landlords, and employers. Firms that provide pre-employment screening services also fall into this category. Along with employers that use background screening services, they are governed by the Federal Credit Reporting Agency.  
    • Duty of care: As an employer, you have a legal duty of care. This obligates you to adhere to a standard of reasonable care when making employment decisions. Tests for imposing a duty of care vary from state to state.  
    • End-userThis is an employer or landlord who requests a consumer report from a reporting agency for a purpose such as employment or tenancy.  
    • Equal Employment Opportunity Commission (EEOC): The U.S. EEOC enforces certain laws that prohibit companies from using employment policies and practices that have a disproportionately negative effect on certain classes of job candidates or employees if they are not job-related and necessary to business operations.  
    • Federal Credit Reporting Act: This law regulates any companies which provide reports on consumers’ credit standing, character, or reputation.  
    • Federal Trade Commission (FTC): The FTC is responsible for the administration of the FCRA.  
    • Negligent hiring: This legal theory states that employers are liable for the wrongful acts of their employees if they fail to use reasonable care in their hiring process.  

Are your eyes glazing over yet?!  

Of course, it’s good to know the basics. But the bottom line is: You’re an HR leader, not a specialist in employment screening or drug testing. That’s why you should consider partnering with Chane Solutions. We’re not only a nationwide leader in both these areas, but you can also count on us for unparalleled customer service and a single point of contact for all the support and solutions you need. Contact us today to learn more. 

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