Background Check Adjudication: Definition, Guide, and Best Practices

Adjudication. Sounds fancy, right? If you’re wondering what it’s all about, you’re not alone—adjudication can be a bit confusing, but it’s something every employer needs to grasp.

When you run a background check on a candidate, your vendor is responsible for gathering all the necessary information. They give you the information, but it’s your job to decide what to do with that information.

This is where adjudication comes in. It’s the process where you review those results, make decisions based on what you find, and then take the appropriate actions.

In this guide, we’ll explain the adjudication process and offer some best practices to help you make confident, informed choices during hiring. 

What is background check adjudication?

Background check adjudication is the process where you, as an employer, review the information from a background check and decide how it affects your hiring decision. Adjudication ensures that you hire the right people for your business and that these decisions are grounded in a consistent, fair, and legally compliant process.

In today’s regulatory landscape, you can’t afford to be casual about adjudication. There are numerous laws and guidelines—like Fair Chance hiring or Ban the Box—that dictate how you should handle the information uncovered about a candidate. This means adjudication needs to be done thoughtfully, with a clear plan in place.

Here’s why adjudication matters:

1. Risk management: It’s your first line of defense against hiring someone who could be a liability—whether that’s due to a criminal history, regulatory issues, or other red flags.
2. Consistency: Playing favorites is for dodgeball, not hiring. A good adjudication process ensures that every candidate is evaluated against the same criteria, which is crucial for fairness and legal compliance.
3. Confidence in your decisions: When your decisions are backed by a solid process, you can stand by them, knowing they’re informed, consistent, and defensible if challenged.

What statuses are there in adjudication?

When background check results come in, they typically show one of two statuses: Clear or Consider. After that, it’s up to you whether to proceed with the candidate or begin the adverse action process.

Here’s what each one means and what steps you should take next:

1. Clear: This status means the background check returned no issues that require further review. You can proceed with the candidate without needing to review the background check results.
2. Consider: This status indicates that something in the background check was flagged as needing your attention.

At the Consider stage, these are the possible actions:

• Proceed: After reviewing the flagged information, you may decide that the issue isn’t significant, and you can move forward with the candidate in the hiring process.
• Pre-Adverse Action: If the flagged issue leads you to consider ending the hiring process, you’ll start the pre-adverse action process. This involves notifying the candidate about the findings and your intent to end the hiring process. The candidate must be given a specific period (typically 7 days) to respond or correct any errors. This step is required under the Fair Credit Reporting Act (FCRA).
• Adverse Action: If the issue remains unresolved after the pre-adverse action period, you may proceed with formally ending the hiring process by notifying the candidate of your decision.

Different Types of Adjudication

When it comes to adjudication, you have two main approaches: Manual Adjudication and Automated Adjudication. Here’s how they differ:

1. Manual Adjudication: This is the hands-on approach. Every time a background check is flagged for something—like a criminal record or an inconsistency—someone on your team needs to dig into the details and make a call. This can lead to mistakes and a lack of consistency.
2. Automated Adjudication: You set up specific rules ahead of time about how you’d like to handle certain results on a background check. As an example, you might want to “clear” all candidates with minor traffic violations, but “consider” anyone with a DUI. Then, when background check results come in, your provider’s software automatically clears candidates who meet your criteria.

But here’s the deal: Automated adjudication isn’t about letting a robot run the show—it’s more like having a super smart assistant who just happens to be made of code. Your background check provider is simply following the playbook you wrote. They’re executing your decisions based on the criteria you’ve set.

For companies ordering a high volume of background checks, automated adjudication can be a lifesaver, simplifying the process and keeping everything consistent. But when you hit a gray area, manual adjudication ensures you’re doing your due diligence.

How to Build an Adjudication Matrix

An adjudication matrix is your playbook for handling background check results. It’s how you make sure your hiring decisions are consistent, fair, and in line with your company’s values.

Here’s how you can break it down:

1. Identify what results are never deal-breakers: Start with the easy stuff—offenses that you’re comfortable overlooking entirely. These are the types of issues that will never impact your decision to move forward with a candidate.
2. Identify what results are sometimes deal-breakers: Next, move on to the gray areas. These are the results you will want to review more carefully every time before making a decision.
3. Identify what results are always deal-breakers: Finally, you’ll need to define the hard stops—offenses that are too serious to overlook. These offenses always indicate that a candidate is not qualified for the role in question.

There are four important factors you need to consider as you make your adjudication matrix.

1. Time: When did the offense happen? Time can change how you view a candidate’s background. An offense from seven years ago might not carry the same weight as one from last year. As you build your matrix, think about whether certain offenses should be more concerning based on how long ago they occurred. You should also consider where you hire and make sure you aren’t considering offenses that fall outside the allowable look-back window.
2. Frequency: How often has the candidate committed the offense? Repeated offenses—especially over a short period—could indicate a pattern of behavior that’s more problematic. Frequency can often be the tipping point that moves something from a “sometimes deal-breaker” to an “always deal-breaker”.
3. Nature of the offense: What exactly did the candidate do? The type and seriousness of the offense matters, especially in relation to the role they’re applying for. Make sure your matrix reflects these nuances.
4. Role: Different roles have different responsibilities and risks associated with them. Consider the specific duties and level of trust and safety required for the role. For example, offenses related to financial misconduct might be a deal-breaker for roles involving money management but could be less critical for other positions.

Once you’ve considered these factors and sorted offenses into categories, it’s time to document everything. Your adjudication matrix should be a clear, straightforward guide that anyone on your team can follow. This is where you lay out the rules for how different offenses are handled—whether they’re automatically cleared, flagged for further review, or lead to disqualification.

Example Adjudication Matrix

Here’s an example of what your matrix might look like. Remember, this is incredibly oversimplified—just a basic idea to get you started. The goal should be to make your matrix as inclusive and exhaustive as possible.

Offense Type	Time Since Offense	Frequency	Action
Minor Traffic Violation	Any	<3 instances	Clear
DUI	<5 years	Single Instance	Manual Review
Violent Felony	Any	Any	Pre-Adverse Action
Drug Possession	Any	Single Instance	Manual Review

This example just shows the concept. It isn’t legal advice, and an adjudication matrix will never look the same between any two companies. Your matrix is for you to decide, based on your company’s unique needs and risk tolerance. Your provider can help you apply this matrix, but they will not and cannot make hiring decisions on your behalf.

Background Check Adjudication Best Practices

So, you’ve built your adjudication matrix, and you’re ready to start using it. But to really get the most out of it, you need to follow some best practices.

1. Document your adjudication guidelines

Get it all written down. Your adjudication process should be clearly outlined so that everyone on your team knows exactly how to handle different background check results. These guidelines ensure consistency and help protect your company from claims of unfair hiring practices. Your documented process is your first line of defense if your decisions are ever challenged.

2. Follow all relevant laws and regulations

Adjudication isn’t just about your company’s policies—it’s also about following the law. Make sure you’re up to date on all relevant local, state, federal, and industry regulations.

• Fair Chance Hiring and Ban the Box Laws: These laws vary by location, but they generally require you to delay background checks until later in the hiring process, giving candidates a fair shot at the job before their background is considered. They may also dictate what types of offenses you can consider, the length of time since the offense occurred, and also what steps companies must take once they have initiated the adverse action process.
• FCRA Compliance: The Fair Credit Reporting Act (FCRA) requires you to follow specific steps when using background checks in hiring, especially if you take adverse action. This includes providing the candidate with a copy of the report and a summary of their rights.
• EEOC Guidelines: The Equal Employment Opportunity Commission (EEOC) provides guidance on how to consider arrest and conviction records in employment decisions.

3. Use Automated Adjudication where appropriate

This is the game changer. Automated adjudication can save you time and help ensure consistency, especially when you’re handling a high volume of background checks. By setting up your adjudication matrix, you can quickly clear candidates who meet your pre-defined criteria and flag those who need further review. Just remember, automation is a tool—not a decision-maker. It executes the rules you’ve created efficiently, but you’re still in charge.

4. Choose an accredited partner

Choose a background check partner accredited by the Professional Background Screening Association (PBSA). This ensures they follow industry best practices and legal guidelines, giving you confidence that the information you’re basing your decisions on is accurate and reliable.

By documenting your guidelines, staying compliant with the law, using automation smartly, and partnering with the right providers, you can make confident, informed decisions that stand up to scrutiny.

And there you have it—your crash course in background check adjudication! With your newly sharpened adjudication skills, you’re keeping your company fair and hiring like the pro you are.

So, go ahead—adjudicate and make those hiring decisions with confidence!

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