He Was the Perfect Applicant ... Until We Received the Background Check
Although it is legal to base a hiring decision on the results of a background check, doing so could lead to a disparate treatment claim or disparate impact claim.
Businesses are encouraged to implement a written policy that sets forth what background findings will be disqualifying and under what conditions. Under the Equal Employment Opportunity Commission (EEOC), employment discrimination is prohibited on the basis of characteristics like race, sex, religion and national origin.
This includes first providing a copy of the report which was used to make an adverse employment decision before the action is taken and after a decision has been made, informing the applicant orally, electronically or in writing about the findings.