Employee Background Check Protocol

Fair Credit Reporting Act (FCRA)

All background checks conducted by third-party consumer reporting agencies (CRAs) must comply with FCRA requirements:

• Obtain written authorization from applicant before ordering report
• Provide clear disclosure that background check will be conducted
• Follow adverse action procedures if denying employment based on report
• Provide applicant with copy of report and summary of rights
• Allow reasonable time (typically 5 business days) for applicant to dispute findings

State Cannabis Regulations

State cannabis laws impose additional screening requirements beyond FCRA:

• FBI fingerprint-based criminal history checks (CHRI) required in most states
• State-specific disqualifying offenses (varies significantly by jurisdiction)
• Lookback periods for criminal history (5, 7, or 10 years typical)
• Mandatory reporting of certain convictions to regulatory authority
• Prohibition on employing individuals with specific cannabis-related convictions

Ban-the-Box & Fair Chance Laws

Many states and municipalities have "ban-the-box" laws prohibiting criminal history questions on initial job applications. Employers may only inquire about criminal history after conditional offer of employment. Consult state-specific requirements before including criminal history questions in application materials.

Required Documentation

After extending conditional offer, obtain the following from applicant:

• FCRA Authorization Form: Written consent for background check (separate from application)
• FCRA Disclosure: Standalone document explaining background check will be conducted
• State-Specific Forms: Additional consent forms required by state cannabis authority
• Photo Identification: Government-issued ID for identity verification
• Social Security Number: For criminal history database searches

Identity Verification

Verify applicant identity before submitting fingerprints or background check requests. Compare photo ID to applicant, verify SSN format, and confirm address history. Maintain copies of all identification documents in personnel file.

Approved Fingerprinting Methods

• Live Scan (Electronic): Preferred method in most states. Applicant visits approved vendor (IdentoGO, MorphoTrust, etc.) for electronic fingerprint capture. Results typically available in 3-5 business days.
• Ink Fingerprint Cards (FD-258): Accepted in some states if live scan unavailable. Must be completed by certified technician. Processing time 4-6 weeks.

Submission Requirements

• Use state-specific ORI (Originating Agency Identifier) number
• Include employer license number on submission
• Pay required fees (typically $30-75 per applicant)
• Provide applicant with receipt/confirmation number
• Track submission status through state portal

Results Interpretation

FBI CHRI reports return one of three results:

• "No Record": No criminal history found in FBI database
• "Record Found": Criminal history exists — review rap sheet for disqualifying offenses
• "Unclassifiable": Fingerprints rejected due to quality issues — resubmit required

Automatic Disqualification (Most States)

• Drug trafficking or distribution (felony) — typically 10-year lookback or lifetime ban
• Violent felonies (murder, assault with deadly weapon, robbery) — 10-year lookback or lifetime ban
• Sexual offenses requiring sex offender registration — lifetime ban
• Fraud or embezzlement involving amounts exceeding $5,000 — 7-10 year lookback
• Cannabis-related felonies in states where cannabis remains illegal — varies by state

Discretionary Review (Case-by-Case)

• Non-violent drug possession (misdemeanor) — typically 5-year lookback
• DUI/DWI convictions — 5-year lookback, multiple offenses may disqualify
• Theft or property crimes under $5,000 — 5-7 year lookback
• Assault (misdemeanor, no weapon) — 5-year lookback
• Cannabis possession or cultivation (misdemeanor in legal states) — often not disqualifying

Step 1: Pre-Adverse Action Notice

Provide applicant with:

• Copy of background check report
• Copy of "Summary of Your Rights Under the FCRA" (from FTC)
• Written notice that adverse action may be taken
• Contact information for background check company

Step 2: Waiting Period

Allow applicant reasonable time to dispute report accuracy (typically 5 business days minimum). Do not finalize employment decision during this period. If applicant disputes findings, investigate with background check company.

Step 3: Final Adverse Action Notice

After waiting period, if proceeding with denial, provide:

• Written notice of final decision to deny employment
• Name, address, and phone number of background check company
• Statement that background check company did not make the decision
• Notice of applicant's right to dispute report accuracy with CRA
• Notice of applicant's right to obtain additional free report within 60 days