The Equal Employment Opportunity Commission (EEOC), under Title VII of the Civil Rights Act of 1964, prohibits employers from making certain automatic decisions that would adversely affect the hiring decision based on criminal records and/or credit reports.
The reasoning behind this prohibition is "disparate impact," where a seemingly neutral policy (like denying someone based on information in their background report) disproportionately affects certain groups, such as underrepresented minorities.
The EEOC put forth new guidance in April, 2012 with respect to individualized assessment when considering criminal records in the hiring process.
When potentially adverse information appears on a report Checkr marks the report as consider, which draws the attention to the portion(s) of the report which may contain the adverse information. This encourages adjudicators to review reports individually, instead of making blanket pass/fail decisions.
At this point, employers are required to conduct an individualized assessment of each background check.