Employee Background Checks with Travis Reiter.
Employee background checks with Travis Reiter, to help you screen and hire the right employees for your small business (starting at 14:40).
[DISCLAIMER: You should seek your own legal counsel before implementing any of the practices or actions discussed on this episode, as there are specific laws that apply to the use of background checks which you should become familiar with first. Please review our full Disclaimer here.]
This episode is all about Employee Background Checks. What are they exactly, and when and how should you use them to help you make better hiring decisions.
Travis Reiter is the co-owner and operator of Perfect Fit Background Checks, an employment screening company based out of Austin, Texas.
Prior to launching Perfect Fit, Travis worked in sales and account management at software technology companies ranging from small, fast-growing start-ups to large Fortune 500 companies.
Motivated by the flexibility and opportunity that comes with small business ownership, he and his partner, Rachael Sperling, purchased Perfect Fit Background Checks in early 2021, acquiring a software platform and support team with 15 years of industry experience.
Perfect Fit Background Checks focuses on supporting small and medium sized businesses with personal support and affordable prices.
They also give a portion of profits to organizations creating opportunities and providing re-entry services for people with criminal records.
Travis lives in Austin, Texas.
Special Offer: Your first Standard Package background check with Perfect Fit Background Checks is free! But you must use this link to order: Perfect Fit Background Checks
Affordable background checks for small and medium sized businesses.
Starting from $16.
No sign-up fees and no contracts.
Employee Background Checks with Travis Reiter
- Travis worked as an Automotive Painter’s Assistant and then started Web Design business – his first small business venture.
- He then had a successful career in Sales and Account Management for larger companies.
- Travis shares the story of what led him to starting your second business Perfect Fit Background Checks?
- When did you know you wanted to be your own boss? Who were early entrepreneurial influences?
- Why are you a business owner? What does it provide you?
- What are background checks?
- Checking criminal records, driving history, drug testing, occupational health screenings, work and education verification.
- “They are not a moral litmus test, and they’re not a consumer grade background check.” Please explain.
- When and why should I use background checks?
- Risk mitigation
- Some industries require it, such as financial services, childcare, and healthcare.
- How do you know what checks are right for you and your business?
- You should consult your legal counsel.
- How does it work? What’s involved?
- County Criminal: this is where most records live and thus is the most important search.
- Nationwide Criminal Search: Includes hundreds of searches and is a great value for the price.
- Sex Offender Lists.
- Driving History for folks driving company cars.
- Drug testing and occupational health tests for physically demanding roles.
- Employment and Education Verification.
- How long does it take? Depending on the background check, anywhere from 24 to 48 hours. In some cases it may take longer if the information is not available electronically.
- Important Considerations:
- Important things to know about:
- FCRA (Fair Credit Reporting Act) Compliance
- FTC Guidelines: https://consumer.ftc.gov/articles/employer-background-checks-your-rights)
- Authorizations and Disclosures prior to placing an order. To run a background check on someone, you must get their permission to do so.
- How you handle “Adverse Actions” (if you decide not to extend an opportunity based on the results of the background check). Please consult with your attorney on this, but you should keep the information confidential, share the data with the rejected candidate, and allow them an opportunity to dispute the data.
- Ban-the-box legislation: some states and local governments have adopted ‘ban-the-box’ legislation. In these jurisdictions, the employer can’t ask about criminal history until after a conditional offer of employment has been made.
- Confidentiality?
Episode Host: Henry Lopez is a serial entrepreneur, small business coach, and the host of this episode of The How of Business podcast show – dedicated to helping you start, run and grow your small business.
Resources:
Learn More About Employee Background Checks:
Travis Reiter, co-owner and operator of Perfect Fit Background Checks, offers extensive resources for small business owners to learn about background checks and when and how to use them to make hiring decisions, including:
- When do I need to run a background check?
Summary: On this page, Travis explains why employee background checks are essential for business owners and those new to hiring, serving as a key risk management tool to protect the business, its employees, and customers. While not legally mandatory in most industries, they are recommended for safeguarding the business. The basic background check package includes criminal, sex offender searches, and social security traces, ensuring compliance with the FCRA. It’s important to tailor these checks to specific job roles to avoid limiting the talent pool unnecessarily and manage costs effectively. Ongoing or annual checks may be necessary for certain roles, and legal counsel should be consulted for tailored advice. The Perfect Fit Background Checks team offers assistance in customizing background check packages to suit various small business needs. [Learn More] - Background check disclosures & authorizations: what you need to know
Summary: In the pre-employment stage, it’s legally required to inform candidates about and obtain their authorization for background checks, crucial for compliance with the Fair Credit Reporting Act (FCRA) and avoiding legal issues. Disclosures must be clear, simple, and standalone documents, separate from employment applications, and can be presented electronically or in print. Even minor errors in language or format, like a misplaced semicolon or extraneous footnotes, can lead to legal challenges. After disclosure, employers must also secure explicit candidate authorization, which can be signed digitally or in person, for running the background check. The Perfect Fit Background Checks platform facilitates this process by allowing electronic sending and storage of these forms. Additionally, authorization forms should be straightforward and not include irrelevant information. State-specific requirements may vary, and the Perfect Fir Background Checks platform simplifies this for remote hiring across different locations. Adhering to these FCRA guidelines is critical for legal and compliant hiring practices, and the Perfect Fit Background Checks team offers support and resources for navigating these requirements. [Learn More]
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