Can You Legally Check Someone's Background Using An Online People Search for Hiring Purposes?

When hiring an employee, conducting a background check can be an essential part of the process to ensure you're making an informed decision. With the proliferation of online people search tools, many employers wonder if they can simply use these kind of platforms to look up potential hires.

However, it's important to understand whether such checks are governed by legal regulations, particularly the Fair Credit Reporting Act (FCRA). Here's a breakdown of what you need to know.

What Are Online People Search Services?

Online people search services are websites and platforms that aggregate publicly available information from a variety of sources, such as public records, social media, and other databases.

These platforms often allow you to search for individuals by name, address, or phone number to uncover details such as criminal history, employment history, education, and other personal information.

While these tools can seem convenient and cost-effective for employers, it's important to understand the legal implications of using such services during the hiring process.

The Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA) is a federal law that governs how background checks can be conducted for employment purposes.

The FCRA is designed to protect job applicants and employees from the misuse of personal information, ensuring that background checks are used fairly and responsibly.

Under the FCRA, any background check that is used for employment decisions (such as hiring, promotion, or termination) is considered a consumer report.

This includes information about a person's credit history, criminal records, employment history, and other personal details. When using these reports, employers are subject to certain requirements, including:

1. Consent: Employers must obtain written consent from the job applicant or employee before conducting a background check.

2. Disclosure: If the employer decides not to hire an applicant based on information obtained from a background check, the employer must provide the applicant with a notice, called a pre-adverse action notice, that explains the reason for the decision.

3. Adverse Action Process: If the employer takes adverse action (e.g., rejecting the applicant based on the background check), they must give the applicant the opportunity to review the report and dispute any inaccuracies.

Importantly, the FCRA applies to any background check conducted by a third-party consumer reporting agency. So, if the online people search tool you use qualifies as a consumer reporting agency under the FCRA, you must comply with its requirements.

Can You Use Online People Search Services For Hiring Background Checks?

The key issue here is whether the online people search service is considered a consumer reporting agency under the FCRA.

The FCRA defines a consumer reporting agency as any entity that provides consumer reports for the purpose of evaluating an individual's eligibility for credit, insurance, employment, or other purposes.

Most general online people search services are NOT considered consumer reporting agencies, as their primary purpose is not to generate reports for employment or credit purposes.

Instead, they may aggregate and provide publicly available data without the level of verification required by the FCRA.

However, there are a few important points to consider:

1. Accuracy of Information: The information provided by online people search tools may be incomplete, outdated, or inaccurate. If you use such services for a background check, there's a higher risk of making hiring decisions based on incorrect or misleading information, which could lead to legal challenges.

2. The Use of Professional Screening Services: For employment background checks, it is advisable to use professional background screening services that are FCRA-compliant. These agencies specialize in gathering accurate, up-to-date information from a variety of sources and can help ensure compliance with legal requirements.

3. State Laws and Local Regulations: In addition to the FCRA, various states in the U.S. and local jurisdictions have their own laws governing background checks. These may impose stricter requirements or restrictions on how background checks can be conducted.

For example, some states prohibit the use of criminal background information after a certain period (e.g., "ban-the-box" laws) or restrict access to certain types of information.

Risks of Using Non-FCRA-Compliant People Search Services

While using an online people search service for hiring may seem tempting, it comes with significant risks:

1. Non-compliance with FCRA: If the online search service is not compliant with FCRA regulations, you may inadvertently violate the law, which could expose your company to legal liabilities.

2. Inaccurate or Outdated Information: Non-professional sources may provide incorrect or outdated information that could lead to unfair hiring decisions. This could open your business up to lawsuits for discrimination, wrongful termination, or other legal claims.

3. Lack of Transparency: Using a third-party tool that doesn't disclose how it gathers and verifies its data could make it difficult to ensure transparency and fairness in the hiring process, which is critical for maintaining a fair and equitable workplace.

Best Practices For Legal Compliance

While online people search tools can provide a snapshot of an individual's background, they are not generally recommended for employment-related background checks. If you want to ensure that your hiring process is legally compliant, it's crucial to rely on FCRA-compliant background check services.

These professional agencies not only provide more accurate, thorough, and legally vetted information but also ensure that your hiring practices adhere to the proper legal frameworks.

In summary, if you intend to use an online people search service for employment purposes, be aware of its limitations and risks. For the sake of legal compliance and to make the best hiring decisions, it's often safer to use established, FCRA-compliant background screening companies.

SearchUSAPeople follow the FCRA regulations and you should not use our website to make employment decisions. We support fair chance hiring practices and recommend the professional agency "GoodHire" for employee background checks.