How To Conduct Employee Background Investigations without Getting into Legal Trouble

Creative business leaders used to conduct background investigations basically for certain types of jobs. For example, people who applied to work in security, banking or childcare generally had to undergo a background check before they were hired. Today creative business leaders conduct background investigations on nearly every prospective hire for a variety of reasons. In fact, the Society for Human Resource Management (SHRM) reports that as of 2010, approximately 76 percent of employers conducted a background investigation “for all job candidates.” 

Depending on the functions (e.g. teaching young children, counting money) employees perform, as a creative business leader you may be required by state or local laws to conduct background checks on certain employees. State police and/or labor departments generally have details regarding the specific types of employees who require background investigations before they start working. 

Types of Employee Background Investigations

Types of background investigations you may be authorized to conduct on prospective hires are: 

• Criminal background investigation (These checks are done across a county or state. You can also conduct tri-state and national criminal background investigations. National criminal background investigations are conducted through the Federal Bureau of Investigation.)
• Credit background investigation (The three major credit bureaus – Equifax, Experian and TransUnion—provide credit reports to employers. Prospective hires can also contact the agencies and receive a copy of their personal credit report, review the report and ask the agencies to remove any incorrect data off their report. Consumers can also get a free annual credit report by contacting annualcreditreport.com.)
• Drug and alcohol checks (You can save time and have these checks conducted, along with criminal and background investigations, by external vendors.)
• School records (The Family Educational Rights and Privacy Act requires you to receive consent from prospective hires before a school releases the persons’ college transcripts, etc.) 

Reasons Creative Business Leaders Conduct Employee Background Checks

Even if employees aren’t required by law to undergo a background check, reasons you might want to review their background include: 

• Ensure the safety of your current workers
• Decrease the chances of employees stealing from your company
• Check the accuracy of details provided on employee resumes
• Increase your chances of hiring workers who strong personal and working backgrounds
• Keep the reputation of your firm in positive standing 

As if to offset the larger percentages of employers looking into prospective hires’ personal histories, some American workers are starting to take employers to court regarding their hiring decisions post receipt of background investigation results. To help keep your business clear of lawsuits work with your human resources managers to establish background investigation policies and procedures. Include steps your firm will take to respond to negative findings in reports. Also establish whether your firm will conduct investigations internally or externally through a private vendor. Regardless of the approach you take, be consistent in your policies and practices, treating each applicant fairly. 

Get into Spiral online at:  https://www.ebookit.com/books/0000000841/Spiral.html

Check out Long Walk Up online at:  https://www.ebookit.com/books/0000000531/Long-Walk-Up.html 

Sources:

http://www.shrm.org/LegalIssues/FederalResources/Pages/ReportCriminalBackgroundChecks.aspx (Society for Human Resource Management: Lawsuits Challenging Criminal Background Checks on the Rise)

http://www.shrm.org/Research/SurveyFindings/Articles/Pages/ConductingReferenceBackgroundChecks.aspx (Society for Human Resource Management: Background Checking: Conducting Reference Background Checks SHRM Poll)

http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt156.shtm (Federal Trade Commission: Want a Free Annual Credit Report)