CERs Background Screening & Verification 4 — Questions and Answers
Question 1: What is the significance of the 'seven-year rule' under the FCRA for non-conviction criminal records?
- CRAs may only report felonies older than 7 years
- Non-conviction records generally may not be reported beyond 7 years for positions below a salary threshold (Correct answer)
- All records expire after 7 years regardless of salary
- The rule applies only to civil judgments
Correct answer: Non-conviction records generally may not be reported beyond 7 years for positions below a salary threshold
The FCRA's 7-year reporting limitation on non-conviction records applies to positions below a salary threshold (currently ~$75,000 annually), with some state laws being stricter.
Question 2: A staffing agency places contractors at a client site. Who bears responsibility for FCRA compliance when the agency runs background checks?
- The client company alone
- The contractor alone
- The staffing agency as the employer of record (Correct answer)
- The background check vendor exclusively
Correct answer: The staffing agency as the employer of record
The staffing agency, as the entity ordering the consumer report and employing the contractor, carries primary FCRA compliance responsibility.
Question 3: A background check reveals a candidate has a bankruptcy from 4 years ago. Under the FCRA, for how long can bankruptcies be reported?
- 7 years
- 10 years (Correct answer)
- 5 years
- Indefinitely
Correct answer: 10 years
Bankruptcies may be reported for up to 10 years under the FCRA, longer than most other adverse financial items.
Question 4: Which best describes 'continuous monitoring' in the context of background screening?
- Running a full background check every time a contractor bills hours
- Ongoing automated alerts when a current employee's records change post-hire (Correct answer)
- Checking social media daily
- Annual re-verification of employment eligibility only
Correct answer: Ongoing automated alerts when a current employee's records change post-hire
Continuous monitoring uses automated services to alert employers when new criminal, driving, or other records are added to a current employee's file after the initial hire check.
Question 5: An employer uses a background check policy that results in 50% of Black applicants being disqualified versus 10% of white applicants. This is an example of:
- Disparate treatment
- Disparate impact (Correct answer)
- Reasonable accommodation
- Adverse action
Correct answer: Disparate impact
Disparate impact occurs when a neutral policy disproportionately excludes a protected class, even without discriminatory intent.
Question 6: When verifying professional licenses, which source is considered most reliable?
- The candidate's LinkedIn profile
- The issuing licensing board's official database (Correct answer)
- A letter from the candidate's supervisor
- The candidate's resume
Correct answer: The issuing licensing board's official database
The issuing licensing board's official database provides authoritative, up-to-date verification of license status, expiration, and any disciplinary actions.
Question 7: A recruiter learns that a background check vendor is selling candidate data to third parties without consent. The ethical response is to:
- Continue using the vendor since the data is already sold
- Terminate the vendor relationship and notify affected candidates if required (Correct answer)
- Ask the vendor to stop but keep using their services
- Ignore it as the vendor's legal problem
Correct answer: Terminate the vendor relationship and notify affected candidates if required
Selling candidate data without consent violates FCRA provisions and ethical standards; recruiters must end the relationship and may have notification obligations.
CERs Background Screening & Verification 4
What is the significance of the 'seven-year rule' under the FCRA for non-conviction criminal records?