Legal Requirements for Employee Background Checks in Wisconsin

In Wisconsin, conducting employee background checks is a crucial process for employers aiming to maintain a safe and secure workplace. However, it’s essential that these checks are performed in compliance with state and federal laws to avoid legal repercussions. This article outlines the legal requirements for employee background checks in Wisconsin.

1. Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act is a federal law that governs how employers can obtain and use consumer reports, including background checks. Under the FCRA, employers must obtain written consent from the applicant before conducting a background check. Furthermore, if the employer intends to take adverse action based on the findings (such as denial of employment), they must provide the candidate with a copy of the report and a notice explaining their rights under the FCRA.

2. Wisconsin Statutes

Wisconsin has its own set of statutes governing employee background checks. One important law to be aware of is Wisconsin Statute 111.321, which prohibits discrimination based on arrest or conviction records unless they are substantially related to the job in question. Employers must ensure that they comply with this statute while evaluating applicants with criminal records.

3. Ban the Box Law

Wisconsin enacted a “Ban the Box” law, which restricts employers from inquiring about an applicant’s criminal history on job applications. Employers are prohibited from asking about criminal convictions until the applicant has been selected for an interview or the employer has made a conditional offer of employment. This regulation aims to give all candidates a fair chance in the hiring process.

4. Limited Use of Criminal Records

When conducting background checks, employers must consider the relevancy of criminal records to the position in question. Wisconsin law dictates that certain types of criminal records must not be used against applicants, especially if the offenses are expunged or if a significant amount of time has passed since the conviction. Employers should consult legal counsel when in doubt about using criminal history as a basis for hiring decisions.

5. Privacy Considerations

Employers must also be mindful of privacy laws when conducting background checks. In Wisconsin, it is illegal to obtain background information without notification to and consent from the individual being investigated. Additionally, all information obtained must be kept confidential and secure, protecting the privacy of all employees and applicants.

6. Disclosure and Record Keeping

Once a background check is completed, employers should maintain records of the consent forms and background checks for at least five years. This not only ensures compliance with the FCRA and Wisconsin statutes but also protects employers in case of any disputes regarding hiring practices.

Conclusion

Navigating the legal landscape surrounding employee background checks in Wisconsin requires a comprehensive understanding of both state and federal laws. Employers must ensure they are compliant with the FCRA, state statutes, and privacy laws to conduct effective and lawful background checks. By adhering to these guidelines, employers can protect themselves legally while fostering a fair and equitable hiring process.