CODESP Background and Reference Investigations 5 — Questions and Answers
Question 1: Which of the following is NOT typically included in a standard background investigation for a public sector position?
- Criminal history check
- Employment verification
- Medical history and current health status (Correct answer)
- Education verification
Correct answer: Medical history and current health status
Medical history is protected under the ADA and HIPAA and is not a standard component of background investigations; it is only obtained post-offer under specific circumstances.
Question 2: An investigator discovers that a candidate's resume claims a bachelor's degree, but the university has no record of the candidate graduating. The most appropriate next step is to:
- Immediately notify law enforcement of the fraudulent claim
- Contact the candidate to provide an opportunity to explain the discrepancy (Correct answer)
- Automatically disqualify the candidate without further inquiry
- Accept the candidate's claim and note it as unverifiable
Correct answer: Contact the candidate to provide an opportunity to explain the discrepancy
Best practice is to give the candidate an opportunity to explain discrepancies, as administrative errors or name changes can sometimes cause legitimate records issues.
Question 3: The statute of limitations on reporting most adverse credit information under FCRA (excluding bankruptcies) is:
- 5 years
- 7 years (Correct answer)
- 10 years
- 12 years
Correct answer: 7 years
Most negative credit information, such as late payments, collections, and judgments, may be reported for up to 7 years under FCRA.
Question 4: Which of the following best supports the principle of 'individualized assessment' when making a hiring decision based on a criminal record?
- Applying the same disqualification criteria uniformly to all criminal records
- Considering the nature of the crime, the time elapsed, and its direct relationship to the job (Correct answer)
- Deferring entirely to the candidate's own explanation without verification
- Excluding all candidates with any record regardless of circumstances
Correct answer: Considering the nature of the crime, the time elapsed, and its direct relationship to the job
Individualized assessment requires weighing the specific offense, how long ago it occurred, evidence of rehabilitation, and how it relates to the job being filled.
Question 5: When a hiring agency contracts with an outside firm to conduct background investigations, the hiring agency:
- Transfers full legal responsibility to the outside firm for any FCRA violations
- Retains ultimate responsibility for compliance with applicable laws including FCRA (Correct answer)
- Is exempt from FCRA requirements since a third party is conducting the investigation
- Must allow the outside firm to make the final hiring decision
Correct answer: Retains ultimate responsibility for compliance with applicable laws including FCRA
Even when outsourcing background investigations, the hiring agency retains legal responsibility for compliance with FCRA and other applicable laws.
Question 6: Which of the following correctly describes the 'pre-adverse action' notice required by FCRA?
- A notice sent to the candidate after the final hiring decision is made
- A notice given to the candidate before a final adverse decision is made, including the report and summary of rights (Correct answer)
- A notice sent to the previous employer explaining why the candidate was not hired
- A written warning issued to the candidate regarding the negative information found
Correct answer: A notice given to the candidate before a final adverse decision is made, including the report and summary of rights
FCRA requires that before taking adverse action, employers provide the candidate with a copy of the consumer report and a summary of FCRA rights so they can dispute inaccuracies.
Question 7: In background investigations, 'scope creep' most commonly refers to:
- The investigation taking longer than originally planned
- Investigators gathering information beyond what is job-relevant or authorized, creating legal and ethical risks (Correct answer)
- A candidate's background becoming more complex as the investigation proceeds
- References expanding their comments beyond the scope of the questions asked
Correct answer: Investigators gathering information beyond what is job-relevant or authorized, creating legal and ethical risks
Scope creep in background investigations occurs when investigators collect information that exceeds what is job-relevant or was authorized, risking discrimination claims and privacy violations.
CODESP Background and Reference Investigations 5
Which of the following is NOT typically included in a standard background investigation for a public sector position?