Overview

GoodHire is an SMB-focused background check service that positions itself as more candidate-friendly than traditional providers. Our analysis reveals better transparency around dispute processes and candidate notifications compared to competitors. However, concerns remain around 7-year data retention, broad consent scope, and potential accuracy issues that affect all background check services.

Key Concerns

  • 7-Year Data Retention: Background check data retained for up to 7 years, creating long-term records of potentially inaccurate information.
  • Broad Consent Scope: Single consent authorizes checks across multiple data sources and categories.
  • Third-Party Data Sources: Relies on external databases that may contain inaccuracies or outdated information.
  • Limited Accuracy Guarantees: No guarantee of data accuracy; liability limitations for incorrect reports.
  • Checkr Subsidiary: Owned by Checkr, meaning data may be shared within parent company ecosystem.

Positive Aspects

  • Clear Dispute Process: Well-documented dispute process with defined timelines for investigation.
  • Candidate Portal: Candidates can view their own reports and track status through dedicated portal.
  • Pre-Adverse Action Tools: Built-in workflows for FCRA-compliant adverse action processes.
  • Transparent Pricing: Clear per-check pricing without hidden fees for SMB customers.
  • FCRA Compliance: Strong emphasis on FCRA compliance in terms and processes.

Data Collection Summary

GoodHire collects personal identifying information, Social Security numbers, addresses, and consent authorizations. Background checks access criminal records, employment history, education verification, and credit reports as authorized. Data is sourced from courts, employers, schools, and third-party databases. Reports are retained for 7 years and may be shared within the Checkr corporate family.