An employment background check includes a review of someone’s criminal, commercial, employment, and financial records. The Fair Credit Reporting Act restricts what employers are allowed to check and how.
The Process of Background Checks
Before an employer is able to conduct a background check, they must first notify a candidate in writing and get written authorization. However, if an employer is conducting the inquiry on their own instead of getting a report through another company then they don’t have to ask for consent. For example, companies don’t need to get any consent in order to call former employers. Employers also need to give a copy of the consumer report and an explanation of the rights. If employers decide not to hire a candidate then they must give adverse action notice and state why they decided not to hire the candidate and the contact information for the employment screening company that was used.
What Employers Can Check with a Background Check
There are different kinds of background checks. One can range from just a verification of your Social Security Number to a much more thorough check into a candidate’s history. Employers can check information such as credit, driving records, criminal records, court records, drug test results, work history, and sex offender information. Employers can also conduct a character check, which involves speaking with friends, neighbors, and other personal acquaintances. The information checked is usually just related to the job. For example, if a candidate is going to be hired to work at a bank then it’s fair to check to see whether he or she has a history of theft or embezzlement. How extensive a background check is will depend on the company, individual employer, or the job involved. For example, a government job with a high-security clearance would need a more extensive background check.
Sometimes background checks are done throughout employment as a condition of the employer. If this is the case, the business needs to say so explicitly in any written policies.
What Employers Can’t Check
Even though there is a range of information that can be used, there is some information that can’t be disclosed.
Military and School Records: An employer is only able to look into these records with consent. For example, school records can’t be released without consent and are considered confidential. Military service records are also confidential and are only going to be released under certain circumstances. However, the military is able to disclose rank, salary, and assignments without consent.
Bankruptcy: An employer can’t discriminate against you just because you filed for bankruptcy. Bankruptcy records are public, so employers can get this information.
Criminal Records: Laws can vary regarding background checks. Some states don’t allow questions about convictions or arrests beyond a certain time period in the past. Others only allow criminal history to be considered for certain positions.
Medical Records: These records are considered confidential in many states. Employers are not able to make hiring decisions based on disability and can only inquire about the ability to perform a certain job.
Salary Checks: Salary checks have come under fire because of the effect on pay equity. Some states now limit whether an employer is able to check the previous salary as a way to encourage equal pay. If employers ask about the previous salary, a candidate may not be obligated to reply depending on location.
Protected Information: Protected information, such as color, sex, religion, national origin, race, age, pregnancy, and marital status, can’t be used in the hiring process.
Why Are Background Checks Done?
Employers do background checks for a number of different reasons. The background check is typically the last step in order to make sure the employer made the right hiring decision and protects the employer from some potential risks.
The background check can be a reliable way to make sure any claims by job seekers are verified. Background checks can be necessary for workplace safety. If an employer hires a new employee that harms another employee then it’s the employer who could face claims for negligent hiring. Background checks can be a way for the employer to protect itself. Checks can also help employers make the right hiring decisions in order to reduce the risk of theft.
