I want to charge potential applicants a processing fee that would cover the cost of a basic background check. Is this illegal to do?
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It looks as though you've already gotten several good answers. I will add that while this practice is not common, there are very few laws that would keep you from it. We see volunteer and non-profit agencies "request" that the fees be covered. There are a few states, California being one of them, that have regulations that address fees related to condition of employment - so you would need an attorney to get a complete answer.
Generally speaking employers pay in California for both background checks and Pre-employment drug testing. Your question however is asking about a processing fee. You may want to clarify if you are requesting a fee to process vs. the actual background check. My recommendation is that you ask the company where you intend to order bakcground checks from-they will probably know what the rules are for your state. By the way we do background checks if you need help with this process. JIll Chioino President ARCpoint 925-957-6872
With the usual caveat that I am not an attorney, and that you should check with an attorney familiar with Ohio Employment law, I am not aware of any prohibition against your company charging a fee for a background check on a potential employee. If you run a background and decide not to hire based upon the information contained in that report, you are required to notify the applicant and they can request a free copy of the report from the Consumer Reporting Agency, CRA (the background screening firm) pursuant to the Fair Credit Reporting Act (FCRA). A cursory check of Ohio law does not show any prohibition. You may want to see if deducting if from an employee pay check is prohibited in OH.
Not sure of the legality - I will defer to a HR expert - although I will make a side bet that CA will frown up the practice. I think the challenge you will face is that you will a viable candidate who is turned away by the fee and doesn't want to join your team.
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