What Does "Managed State Compliance" Mean on a Background Check?
When you see "managed state compliance" on a background check report, it refers to the background check company's adherence to the varying and often complex legal requirements for conducting background checks across different U.S. states. Each state has its own specific laws and regulations regarding what information can be collected, how it can be used, and the process for obtaining consent. These laws often govern areas like:
- Criminal record checks: The types of criminal records that can be accessed, the timeframes considered (e.g., expunged records, sealed records, age of convictions), and the permissible disclosure of such information.
- Consumer reporting: The Fair Credit Reporting Act (FCRA) is a federal law, but states often have their own additional requirements regarding how consumer reports are handled, especially those related to employment screening.
- Data privacy: Many states have strict data privacy laws that regulate the collection, storage, and use of personal information, including information obtained during a background check.
Managed state compliance means the background check provider actively monitors and updates their processes to ensure they are legally compliant in every state where they operate. This includes:
- Staying current on changes in state law: State laws are constantly evolving. A compliant provider actively tracks legislative updates and adjusts their procedures accordingly.
- Using state-specific forms and disclosures: Proper consent forms and disclosures must be used, tailored to meet each state's legal requirements. This often includes legally required notices about the applicant's rights and how their information will be used.
- Utilizing compliant data sources: The provider ensures that the sources they use for obtaining background information are compliant with state and federal laws.
- Implementing appropriate security measures: Protecting the privacy and security of the collected data is paramount, requiring secure data storage and transmission practices compliant with each state's regulations.
What are the implications for job applicants?
For job applicants, "managed state compliance" implies that their background check will be conducted legally and ethically. Their rights are protected, and the information obtained will be used responsibly, adhering to all relevant state regulations. A compliant background check provider will:
- Obtain proper consent: They'll obtain your consent before conducting the background check, using legally sound methods and forms.
- Provide accurate and up-to-date information: They'll strive to provide accurate information, ensuring they're pulling from reliable and legally accessible sources.
- Treat your data with respect: They'll handle your personal data responsibly, following strict security protocols to protect your privacy.
What if a background check company isn't compliant?
Non-compliance can lead to several negative outcomes for both the background check company and the applicant. The company may face significant fines or legal action, and the applicant might have grounds to challenge the results or even sue for damages related to violations of their rights.
What questions should I ask?
If you have concerns about a background check's compliance, you can always ask the employer or the background check company:
- Which states' laws are covered by the background check? This clarifies the scope of their compliance efforts.
- What specific compliance measures are in place? This helps understand the concrete steps taken to ensure legal adherence.
- What resources or documentation support their claims of compliance? This indicates the company's transparency and commitment to following regulations.
In short, "managed state compliance" is a key indicator of a responsible and legally sound background check process. It assures both employers and job applicants that the process adheres to the often intricate and state-specific legal framework surrounding background checks.
