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The Need for Employment Background Checks -
by: Steve Valentino
Depending on your state and what type of business you are in, employee background checks
may or may not be mandated by law. In businesses that deal with children or seniors, Federal
law requires background checks on all employees and/or volunteers. The reasons should be
obvious: the Federal government wants to ensure that those served are safe from hard and
employers need to safeguard themselves against negligent lawsuits.
If an employee will be doing any type of driving for the business, it is important to know their
driving history. For insurance purposes, employers need to have up-to-date information
regarding the candidate’s Motor Vehicle Records (MVR) report. This report details any moving
violations or accidents. Information such as this can assist the employer in making a solid
decision regarding the hiree. This type of information is usually available at the state level for a
minimal fee.
Employers conduct employee background checks for a variety of reasons. With the rise of
lawsuits for negligence, many employers are considering employee background checks a
standard part of their Human Resource guidelines. A growing number of child and elder abuse
cases, as well as child abduction cases, make it important for all employers hiring people to
work with these groups to perform detailed background checks. Following the terrorist acts of
September 11, 2001, many employers are now screening new hires with a scrutinizing eye.
Concerns over potential terrorists obtaining positions within sensitive agencies have increased
the popularity of employee background investigations.
Employers also want to be sure that the information given by the applicant is true and
accurate. With many employers reporting up to 30% of applicants falsifying information,
background checks can screen for those who lie on resumes. Employers often interpret this as
a lack of good morals and character on the part of the applicant. It is direly important for
prospective employees to be up-front and honest about their backgrounds, work experience
and education.
Pre-Employment Background Checks
In the information age in which we live, background checks are not necessarily difficult to
perform. Basically, an employer needs to understand the Fair Credit Report Act laws as well
as laws pertaining to individual states. With these laws in mind, the employer can determine
what type of information is actually needed, considering each position within their company
and the details of the job function. Some positions may require cash or sensitive information
handling and would therefore need a thorough criminal background check. Other positions
may not be as sensitive in nature but require a high degree of education or experience in the
field. Educational background checks and work related references are often very important in
this type of pre-employment screening.
Some employers require a credit report in their pre-employment screening tools. This subject
is widely debated and is often considered an invasion of privacy. Many prospective employees
ask employers, “I will not be handling cash transactions or dealing with personal information,
why do you need my credit report?” Most employers who request this information are not
necessarily trying to be intrusive into the candidate’s life; they simply believe that a credit
report is a good indicator of character. Some employers insist that a poor credit score, which
indicates failure to pay bills on time, means that the individual does not have a high level of
responsibility. Others claim that a poor credit score indicates poor job performance and could
possibly turn into retention issues. Credit reports also list employment history and places the
person has lived. Employers often use this as a pre-screening tool to verify that application
information is true and accurate.
Another type of pre-employment background check included in the “investigative consumer
report” is character referencing. This method usually involves the personal interviewing of
friends, family, neighbors or associates and is an approved method of screening under the
Fair Credit Reporting Act (FCRA). This type of investigation does, however, require a separate
consent form required under the FCRA. It gives the employer a general idea about the
candidate’s character and personal moral values.
 It is imperative that employers provide notice to the applicant prior to conducting the pre-
screening background check. As mandated by federal law, specifically the Fair Credit
Reporting Act. Employers need to ensure that they are following the guidelines set forth by the
Act. Having the proper consent forms and understanding what information can and cannot be
used in the hiring process is just as important as gaining the information itself

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