Background Check Vendors Reckon With Increased Job Bias Scrutiny

Third-party employee screening companies are finding themselves more in the litigation fray in California for blocking job seekers with criminal records thanks to a growing advocacy and legal movement that’s pushing to hold them accountable alongside employers.

A group of background check companies—DISA Global Solutions Inc., the Health and Safety Council, and the North American Background Screening Consortium—and three oil refinery businesses are accused of using a rating system that screens out otherwise qualified candidates solely based on their previous convictions that have no adverse relationship with the jobs they applied for.

The complaint filed Aug. 8 in Los Angeles ...