The main benefit of a pre-employment background check is that it reduces the chances of a hiring disaster. A thorough background check deters fakers, who may drop out to avoid embarrassment, and exposes dishonest applicants who opt to go it alone. By screening out applicants with a history of violence or drug use, a background check can spare your organization from a negligent-hiring lawsuit.
However, the Small Business Administration recommended that you do a thorough police check for business. Many areas of employee privacy are protected by law, and infringing an applicant’s rights could result in legal action being taken against you.
Identity Verification
A background check may reveal that the job seeker is using a fictitious identity when seeking jobs. A background check may include a Social Security check, verification of an applicant’s I-9 Form (which certifies his right to work in the United States), and a search of worldwide homeland security databases.
Work Experience and Education
A background check also confirms that the applicant attended the colleges stated on his resume and that any degrees or licenses he claims were earned. It also validates information about his previous employment history, such as if he worked there at all, for how long, how satisfied his employers were with his performance, his job title, compensation, and any development in his career.
Criminal and Legal Background
According to the SBA, state rules governing criminal background checks for potential employees differ. It suggests that you seek legal advice. Even though arrest records are public, you cannot obtain information that is more than seven years old. However, you may look up criminal convictions. A background check can show information such as corporate vehicle driving records, recent civil cases, sex offender data for at-risk jobs, and county, state, or federal convictions. Drug and alcohol tests can help employers spot candidates who have substance abuse or alcoholism issues.
Filings for Bankruptcy
Bankruptcy filings are public records that are frequently reviewed as part of a background check on an employee. These records can be obtained through a commercial public records aggregator or directly from the court via the federal court’s Public Access to Court Electronic Records (PACER) website.
Financial Information
The Federal Fair Credit Reporting Act protects an employee’s settled tax liens and any collections data older than seven years if you hire a consumer reporting agency to collect it. According to the website Bankrate.com, these employee safeguards do not apply if the research is done in-house. Before receiving a credit report on an employee, the FCRA requires you to secure his written authorization. A background check may contain a potential employee’s bankruptcy history, but discrimination against potential employees who have filed for bankruptcy is illegal under federal law.
