Employment Background Checks
 
 

What Do Employers Need to Know About Employment Background Checks?

 
Those involved with teaching, law enforcement, the armed services and other professions that involve security or working closely with children, are well acquainted with employment background checks. They have been standard for years, and for good reason. The safety and wellbeing of other employees, customers, clients or students is paramount. It is also important to protect the rights of prospective employees. Here are some tips for making sure the pre-screening process is thorough, expedient, reliable and ethical.

Most job applicants expect some type of background check before being hired: it has become a widespread practice that is beneficial to both employers and employees. They have become routine as businesses seek to avoid negligent hiring lawsuits, comply with post-9/11 regulations, ensure employees do not owe back child support and much more.

There is a wealth of information that is accessible for employers, including:
  1. Motor vehicle records
  2. Credit records
  3. Criminal records at the local, state, and federal levels
  4. Social security trace
  5. Court records
  6. Workers compensation lawsuits
  7. Bankruptcy proceedings
  8. Education verification
  9. Drug screening
  10. Employment verification
  11. Sex offender registries
There are, however, areas that are not permissible and in which your prospective employees are entitled to their privacy. The Fair Credit Reporting Act (which is also the act that governs your credit report) has set standards for screening services and your state may have additional laws and regulations. The FCRA prohibits the following from being reported:
  1. Civil suits, judgments and records of arrest that are older than seven years
  2. Bankruptcies that occurred ten or more years ago
  3. Paid tax liens older than seven years
  4. Accounts that were given over to collection agencies more than seven years ago
  5. Negative information after seven years, excluding criminal convictions in many states
  6. Certain education records, including transcripts
  7. Military records, though the military may release name, rank, salary, and duty status
  8. Medical records
When you run a background check, the prospective employee must be made aware of the screening, according to the FCRA and, in most cases, he/she must sign a consent form. Before starting any type of screening, it is important that your applicant sign a "pre-adverse action disclosure." This means that the employment offer may be rescinded if the report comes back with adverse information. If you decide not to hire an applicant because of this, you must give him/her an "adverse action notice." This provides the applicant with the name and contact information of the company that conducted the screenings, as well as informing the applicant of his right to appeal the decision.

Many people worry about negative findings on screenings - not because they have done anything wrong, but because circumstances beyond their control have interfered. For instance, someone may have been laid off due to the economy. As a result, his credit score suffered because he was late on a few payments. Since employers check credit histories, will this affect his ability to gain employment? It is up to employers to balance the information they receive from reports with the information they get from applicants and make the most informed decision they can.

This is really what background screening does: it allows employers to determine if the prospective employee will be the best fit for their business.