How to Create a Background Screening Policy for Your Company

Trevor Kruer • July 22, 2025

Set Clear Standards, Stay Compliant, and Hire with Confidence

Background screening policy
Creating a strong background screening policy isn’t just about protecting your organization—it’s also about ensuring fairness, consistency, and compliance throughout your hiring process. Whether you’re just getting started or refining an existing policy, having a clearly documented approach will help you avoid legal pitfalls, reduce hiring risks, and build trust with applicants and employees alike.

Here’s a step-by-step guide to help you create a background screening policy that works.

🛠️ Step 1: Define Your Purpose and Goals

Start by asking: Why are we screening?
Most employers conduct background checks to ensure workplace safety, reduce liability, and verify candidate qualifications. Your policy should clearly outline the purpose of screening, such as:
  • Protecting company assets and personnel
  • Ensuring regulatory compliance
  • Verifying the honesty and integrity of candidates
  • Maintaining a safe and productive workplace
A strong purpose statement helps align your screening practices with your company’s mission and values.

📋 Step 2: Identify What Roles Require Screening

Not every role needs the same level of screening. Your policy should specify which roles require which types of checks. For example:
  • All roles: Identity verification, criminal background check
  • Driving roles: Motor Vehicle Reports (MVR), CDLIS reports
  • Financial roles: Credit history, federal criminal records
  • Healthcare roles: OIG/GSA exclusion monitoring, license verification
This approach ensures you’re applying screening consistently and fairly based on job responsibilities—not on personal characteristics.

🧾 Step 3: Choose the Types of Checks to Include

Your background screening policy should list the types of checks you will conduct. These may include:
  • Identity verification
  • Criminal history checks (county, state, federal, national)
  • Employment and education verification
  • Reference checks
  • Motor vehicle records (MVR)
  • Drug testing
  • Credit checks (for financial roles)
  • Professional license verification
Check out our list of industries we serve for recommended services tailored towards your industry. 

⚖️ Step 4: Ensure Compliance with Laws and Regulations

Compliance is one of the most important parts of a background screening policy. You’ll need to align with:
  • Fair Credit Reporting Act (FCRA): Requires written consent, proper disclosure, and adverse action procedures.
  • Equal Employment Opportunity Commission (EEOC) guidance: Recommends considering nature, time, and relevance of offenses.
  • State and local laws: Such as Ban-the-Box laws, salary history bans, and marijuana screening laws.
Your policy should state that all background checks will be conducted in compliance with applicable laws and that decisions will be made fairly and consistently.

🔄 Step 5: Outline the Adverse Action Process

If a background check reveals something that could impact hiring, you are required by law to follow the adverse action process. Your policy should include:
  1. Pre-Adverse Action Notice (with a copy of the report and rights under FCRA)
  2. A waiting period (usually 5–7 days) to allow the candidate to dispute
  3. Final Adverse Action Notice if the decision is upheld
To learn more about Pre-Adverse & Adverse Action Letters, click here. 

🔁 Step 6: Include Rechecks or Ongoing Monitoring (If Applicable)

If your organization conducts rechecks (e.g., annually) or continuous monitoring (e.g., monthly), that should be clearly noted in your policy. Indicate:
  • The frequency of rechecks
  • The roles that require them
  • The types of records monitored (criminal, driving, license status, etc.)
This is especially important for regulated industries or safety-sensitive positions.

💬 Step 7: Communicate Your Policy Clearly

Once your background screening policy is created, ensure that it is:
  • Shared with hiring managers and HR teams
  • Included in your employee handbook or onboarding materials
  • Reviewed and updated annually to stay compliant with changing laws
Transparency builds trust with both internal teams and candidates.

🏁 Final Thoughts

Creating a well-documented background screening policy helps your company stay compliant, reduce hiring risks, and make smarter decisions. At VeriCorp, we help businesses build screening programs that are both thorough and tailored to their specific needs. If you have any questions about a new or existing background screening policy, contact us today for a free consultation with a screening specialist!