Employment Background Checks
Employment Background Checks Definition
Employment background checks are also commonly
called reference checks. But reference checks are
typically only one part of employment background checks,
the latter of which also include investigation into one or
more of the following.
Credit checks are
among the most common investigations during employment
background checks, because they reveal much personal information.
Employers conduct employment background checks to verify
the integrity of job applicants and employees for hiring,
promotion, reassignment and retention decisions. They also
do so to avoid negligent-hiring lawsuits. For example, if
an employer doesn't conduct employment background checks
before hiring, then the employer might be liable if
a job applicant later harms other employees and has a history
of doing so.
Employers hire investigative (consumer-reporting, credit-reporting
or background-check) agencies to conduct employment background
checks. Alternately or additionally, employers rely on their
human resources departments to conduct them.
Some job seekers hire investigative agencies
to conduct background checks on themselves. If you're not
landing jobs, you might consider doing the same to see
what negative or inaccurate information is reported, so
that you may attempt to change it.
Employment background checks are generally legal. (Much
personal information is a matter of public record these days.
Anyone can legally access public records.) In fact, the Federal
government requires its agencies and private-sector contractors
to conduct background checks for certain jobs, often as part
of security clearance investigations.
Additionally, certain state and Federal laws require employers
to conduct background checks (such as for criminal
records) when jobs involve "vulnerable" individuals,
such as children and people who are sick, disabled or elderly.
However, state and Federal laws do regulate background
checks to some degree; for example, an investigative agency
hired by an employer cannot conduct a credit check without
a job applicant's permission and must disclose the applicant's
rights.
Technically, job applicants may refuse
to authorize background checks; but, in reality, they typically
must if they wish to land new jobs.
It's a misconception that it's illegal for employers to
disclose information about former employees during employment
background checks. Generally, relevant state laws allow employers
to disclose information about former employees, as long as
the information is truthful, factual and limited to employment
matters. Read the next page for more about this.
Next Page > Background
Check Laws
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