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Often a job application, resume, or interview does not tell an employer all the necessary information relevant to employment eligibility. In fact, some candidates falsify or exaggerate items on their resume or job application. That’s where background checks can be used as a revealing tool for more, and often more accurate, employment eligibility information.
Scope
Background checks are often used by employers to find out more information about a potential new hire.
Regulatory citations
- None
Key definitions
- Background check: One or a combination of reports collected about individuals for an employment purpose. It may include a credit history, criminal records, driving records, past employment, education, references, professional licenses, military service, social security number, substance abuse records, workers compensation, and other records. Other terms used to refer to background checks include reference checking and employee screening.
Summary of requirements
Background checks are not always an option, but a requirement for certain positions. Examples include school bus and commercial motor vehicle drivers, law enforcement and security officers, childcare workers, patient care workers, teachers, and financial institution workers.
Another reason to perform a background check is to avoid liability for negligent hiring. In some situations, employers may be liable for serious actions an employee takes at work if the employer was negligent in hiring that employee. See the EZ Explanation called Negligent Hiring.
Laws. Before performing a background check, the employer will want to understand all the state and federal laws and regulations related to background checks. One very important law is the Fair Credit Reporting Act. This topic is covered in more detail in another EZ Explanation called Fair Credit Reporting Act . Basically, this act protects prospective employees, existing employees, and other individuals by requiring employers to follow certain steps, including obtaining the individual’s written consent when obtaining a consumer report from a consumer reporting agency. There are some exemptions when investigating employee misconduct.
Where to look. When performing a background check, there are a number of places to look for information, including, but not limited to:
- Resume, application, and interview;
- Personal references;
- Federal, state, and local government agencies;
- Educational institutes;
- Previous or current employers;
- Professional organizations;
- Online databases; and
- Consumer reporting agencies.
Defamation. One snag employers run into with background checks is concern about liability for defamation. Many former employers decline to respond to questions about a prospective employee or they provide minimal information because they are concerned that the employee may bring suit for defamation if they say something negative. Although truthful statements will not support a defamation claim, the employer may have to prove the statements are true. To remedy this, some states have passed job reference immunity laws which provide protection for good faith statements. See the Post Employment Inquiries EZ Explanation for more information.