Using background checks to qualify candidates? Good idea. Not following the strict laws about conducting background checks? Bad idea.

Your daily HR goal: Protect the bottom line. That means no costly hires and no lawsuits. Of course, in our imperfect world, those two goals can sometimes come into conflict.

Another thought: The U.S. Department of Justice reports that one in every 32 adults has a criminal record. So if you have 200 workers in your company, there’s a statistical likelihood that six of them have had trouble with the law.

To make sure you hire safe, honest employees, a background check is usually the best way to go. But if you aren’t careful, you could end up facing claims of discrimination, invasion of privacy or violations of other laws. Here are some of the common do’s and don’ts of background checks:

Only what you need to know

Don’t use arrest information to determine eligibility for employment unless it’s OK with your state. In most states, employers can’t ask about or act on information about an arrest that didn’t lead to a conviction or that resulted in a favorable outcome for the person. Some states also don’t allow employers to deny employment based on a conviction if it didn’t affect the employee’s ability to perform the job.

Do comply with Federal Credit Reporting Act (FCRA) provisions. You’ll have to give the prospective employee written notice if you plan to use a consumer reporting agency and advance notice of any potential adverse action. If the person isn’t hired because of something you find in the report, you’ll need to provide a copy of the report.

Don’t base your hiring decision solely on a bankruptcy. Some jurisdictions call this discrimination. Check with your state’s laws for more information.

Do ask for written consent on a form separate from the job application.

The FCRA requires that a disclosure and an applicant-consent form for obtaining a consumer report be on a separate self-contained form.

Don’t always consider workers’ comp records. You can only factor workers’ comp history into a hiring decision if the injury will interfere with the worker’s ability to do the position’s required duties.