Employers are performing employment background screening considerably more nowadays in contrast to five years ago.
Why do employers check your background?
Here's a valid number of reasons:
- Integrity & Honesty - are you telling the truth? -- It has been estimated that 42% of job applications may include exaggerated or false information. Companies want to confirm they are employing an employee based on their stated qualifications.
- A background check is deemed necessary to verify whether you attended and in fact, graduated from the college stated in your application. Will you be bringing those skills learned?
- Employers also want to verify with previous employers you claimed to have worked for, that you indeed were employed and validate dates of employment. Any gap in employment dates will lead employers to believe information may have been intentionally omitted or perhaps there was an employer you would rather not be contacted.
- Criminal history - Are you a violent person who may create a hostile working environment if hired? -- a criminal records search will reveal just that and will also serve as a test of your honesty. White collar crimes (embezzlement, petty theft, etc.) also play into the equation as it leads employers to believe you cannot be trusted in their company or client's property.
- If you are applying for a job with a company contracted for local, state or federal government work, one of the requirements on their contract is that all employees and their sub-contractors successfully pass a due diligence background for respective security clearance of the work they will be performing.
Legalities of an employment background check
The Fair Credit Reporting Act (FCRA) regulates the guidelines for an employment background check. The FCRA designates an employment background check as a consumer report and therefore, falls into FCRA jurisdiction. All potential employers must obtain signed authorization from a job applicant prior to running a background check. An employer not conforming to this mandate can incur considerable fines and penalties.
Just recently, a class action lawsuit claiming infringement of the Fair Credit Reporting Act (FCRA) was settled in the amount of $2.6 million. See Hall v. Vitran Express, Inc. In this case, plaintiff claimed that employer was secretly conducting background checks without prior signed authorization of potential employees.
What can past employers legally reveal about you?
It differs on a state by state basis. However at the federal level there are no restrictions to what former employers can say about you. Having said that, most employers will not disclose any other information than job title and dates of employment for fear of slander, libel or defamation lawsuits. Unless, at their own discretion -- they feel clear and present danger if the potential employee will be working with children or elderly persons.
As an added insulation layer of litigation protection, many large companies outsource their human resources records to third-party repositories that will disclose limited past employment records for a fee.
FYI: Not being truthful in your employment application could be used as grounds for immediate termination anytime after you commence employment, even years after you were employed. Reason being: By today's standard, the majority of job applications contain a clause whereby you signed and attest that information you provided is accurate.
Reference articles:
Employment background checks: Hiring guidelines
Department of Labor compliance guide
Developing employment creening policies and procedures
Investigating Job Applicants: Employment applications and job interviews
An Overview of the Law and Your Liability: Exercising reasonable care
Pre-Employment Testing: The Legal Overview of Testing
Disclaimer: This article is based in opinion and collected information. While every effort has been made to provide correct and updated information, BCS Background Screening, LLC cannot guarantee it is precise to every employer-employee circumstance. You should consult an attorney to ensure that legal interpretation and decisions are lawfully correct. This reference article is not legal advice and its intent is for reference purposes only.