Year-End HR Audit: Is Your Screening Policy Still Compliant?

As the year comes to an end, HR teams are busy wrapping up projects, planning for the year ahead, and preparing for new hiring needs. But there’s one important task that shouldn’t be overlooked: reviewing your employee background screening policy.

Employment screening requirements can change throughout the year as new state and federal laws take effect. A policy that worked at the beginning of the year may need updates to reflect new legal requirements, changes in your workforce, or adjustments to your organization’s hiring practices.

A year-end HR audit is an opportunity to identify gaps, update procedures, and ensure your screening program is prepared for the year ahead.

Here are six areas to review before the new year:

Start by reviewing your current background screening policy. Does it accurately reflect how your organization screens today?

Consider whether your policy clearly outlines:

• Which positions require background checks.
• What types of searches or screenings are conducted.
• When screenings take place during the hiring process.
• Who is responsible for managing screening requests and reviewing results.
• How screening information is handled and documented.

Your screening policy should reflect your organization’s current needs, hiring practices, and applicable legal requirements. If your organization has expanded into new states, added positions with different responsibilities, or changed its screening procedures, your policy may need to be updated.

Compliance is not a one-time task. State and federal requirements often change each year, and employers need a process for identifying updates that may affect their screening programs.

As part of your year-end review, confirm that your organization has assessed new laws, updated requirements, and state-specific rules in all locations where you recruit and operate.

Pay special attention to requirements involving:

• Criminal history inquiries and consideration.
  
• State and local Fair Chance (i.e., “Ban the Box”) laws.
  
• Credit report restrictions.
  
• Drug testing requirements.
  
• Industry-specific screening standards.
  
• Required disclosures, notices, and documentation.
  
• Requirements may vary depending on your organization’s location, industry, and the position being filled. A policy that works in one state may not satisfy the requirements of another state.

Explore Validity’s compliance resources for information about compliance support, legislative updates, and screening requirements. 

The Fair Credit Reporting Act (FCRA) establishes requirements for employers who use consumer reports, including background checks obtained through a consumer reporting agency.

Your year-end audit should include a review of the procedures your organization follows before ordering a background check and when considering an employment decision based on information in the completed background report.

Key questions include:

• Disclosure: Do applicants receive the required disclosure before a background check is conducted? Is it a standalone document separate from the authorization?
• Authorization: Is the required authorization obtained before ordering the report?
• Pre-adverse action: If information in a consumer report may lead to an adverse employment decision, does your organization follow the required pre-adverse action process?
• Adverse action: If a final adverse decision is made, are the required notices and other applicable steps completed?

These steps should be incorporated into a consistent process rather than handled differently by individual hiring managers.

Employers should review their procedures regularly and consult legal counsel to confirm that their practices meet applicable federal, state, and local requirements.

Your organization’s screening needs may have changed over the past year. As you plan for the next one, consider whether your current screening methods provide the information needed to make informed hiring decisions.

Depending on your organization and the positions being filled, your screening may include:

• Criminal history searches to identify relevant records.
• Employment and education verifications to confirm candidate information.
• Driving record checks for positions involving vehicle operation.
• Drug testing to support workplace safety and applicable requirements.
• Social media screening to identify publicly available content relevant to your organization’s established screening criteria.
• Continuous monitoring to help identify certain changes after an individual has been hired.

Not every screening method is appropriate for every position. Your approach should reflect job responsibilities, organizational risk, applicable laws, and established policies.

Validity offers a range of employee screening services that can be customized to your organization’s specific needs.

Use your year-end audit to determine whether your current screening package still aligns with your organization’s goals, or whether adjustments may be necessary.

Even a well-designed screening policy can become difficult to manage if documentation is outdated, procedures are inconsistent, or important steps are overlooked.

Review how your organization manages screening forms, applicant authorizations, required notices, and records associated with the screening process.

Technology can help organizations manage these responsibilities more consistently.

Validity’s Compliance Automation Software is designed to help clients manage FCRA, FACTA, and state compliance obligations.

Reviewing your documentation and tools before the new year can help your HR team identify inefficiencies and establish more consistent processes.

A year-end audit is a useful starting point, but maintaining a compliant screening program requires attention throughout the year.

Instead of waiting until December to review your policy, establish a recurring process for evaluating changes and addressing potential gaps.

Your plan may include:

• Scheduling periodic screening policy reviews.
• Assigning responsibility for monitoring compliance updates.
• Providing ongoing training for HR staff and hiring managers.
• Reviewing screening procedures when operating in new states or hiring for new types of positions.
• A reliable screening partner can also help your organization stay informed as requirements change.

Validity offers screening services and compliance support to help organizations navigate background screening requirements and manage their responsibilities with greater confidence. Explore Validity’s screening and compliance solutions to learn how we can support your organization.

This feature was contributed by Validity Screening Solutions. 

Legal Disclaimer: Validity Screening Solutions provides this material for educational and informational purposes only, and shall not be construed as legal advice, express or implied. For questions regarding your organization’s practices and compliance with applicable laws, please consult with your legal counsel.