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Why do employers do background checks? Why do employers do background checks? In holding employers liable, courts have ruled that employers have a duty to exercise "reasonable care" in hiring and make a "reasonable effort" to investigate an Employers also seek to protect company assets. According to USA Today Magazine, theft in the workplace, both white- and blue-collar, costs US employers in excess of $60 billion annually. While past offenses do not dictate future actions, would an employer knowingly hire someone who had an outstanding warrant for burglary or fraud? Background checks add an important piece to the applicant's total information profile. The results serve to confirm impressions from interviews and assessments from testing. They increase the likelihood that the applicant is right for the job. Top Is this legal? Employers determine how the background information is used as part of the selection process. Obviously all information must be evaluated in compliance with the Fair Credit Reporting Act, the Americans With Disabilities Act, Title VII of the Civil Rights Act and other applicable State and Federal Law. Two important guidelines: Job Applicability. Checks done should be related to the position; i.e., a Motor Vehicle Record check is applicable for someone driving a company car, but might be questionable for a custodial person. Top How long does this take? Rushes. Sometimes checks can be rushed and results reported within 24 hours. Also, expect your vendor to immediately verbally report potentially alarming information as soon as it is found. Pendings. Sometimes part of a report may be delayed. Most often this occurs when the verifying institution requires information be mailed. Obviously, in such cases a three-day turnaround is not possible. Expect to receive at least a preliminary report in three days, however. If some investigations are incomplete, they should be noted as "pending" and the status provided. The preliminary report often will contain sufficient information to support you hiring decision. Top How much does this cost? Apples-to-Apples. As with purchasing any other product, be sure to do an "apples-to-apples" price comparison. Different vendors structure their background checks and their pricing differently. Top How often do applicants really falsify their backgrounds?
Why is seven years often the limit for background checking? From a legal standpoint, the Fair Credit Reporting Act of 1971 made it illegal to report "obsolete" information in consumer reports. And, there are several variances on "obsolete" as used in the Act. Most often, however, "obsolete" means older than seven years. For employment purposes, the seven year limit does not apply if the applicant's salary is expected to exceed $20,000 annually. For these types of positions, information older than seven years can be reported. This seven year limit is also generally applicable to criminal records. With criminal records, however, the seven years is from date of disposition. This means that if an applicant completes a jail sentence on 1/1/90 , the record can be reported until 1/1/97 . Finally, many employers have also standardized on seven years and will verify former employment only for that timeframe. Top Can the expense of background checks be cost-justified? According to the December 1995 issue of Personnel Journal, average cost per hire is now $3310. The US Department of Labor says a bad hire who leave the company within six months costs the company approximately $40,000 in severance pay, training, wasted human resources time, possible search firm fees, loss of productivity, and impact on employee morale. As with insurance, each employer must decide the level of protection they seek. the financial cost of a negligent hiring suit can be staggering. Perhaps the more appropriate question for employers is: Can you afford not to do background checks? Top How do you perform a criminal background check? The two main difficulties in investigating criminal records are: Although some advertisements make claims of a "national criminal database," currently the only recognized national criminal database in the United States is the National Crime Information Center (NCIC) System database. This database, under the control of the Federal Government and FBI, is open only to government entities. It is not available for commercial use. Although some investigators may access the NCIC through an inside source, this is prohibited by law. In addition, common opinion is that the NCIC database contains limited records. Experts estimate that less than 30% of all criminal records are contained in the NCIC database. Top What is the difference between a felony and misdemeanor? Felonies. Under many state statutes, a felony is punishable by a minimum imprisonment of one year. In the most serious felony cases, some states permit the death penalty. Examples of felony offenses are murder, assault in the first degree and theft over $500. Misdemeanors. These are less serious and include offenses like theft under $500, fifth degree assault, and driving after license revocation. Generally the maximum misdemeanor sentence is 90 days in jail and a $700 fine. Some states further categorize misdemeanors into gross misdemeanors, misdemeanors, and petty misdemeanors based on the level of severity. Sentences will vary accordingly. Plea Bargains. Because felony charges are sometimes plea bargained down to misdemeanor levels, a criminal check that reveals both felonies and misdemeanors is important. Top If there isn't a national criminal database, how are criminal records investigated? County Criminal Checks. Criminal records are maintained at the county level. These records are considered by many as one of the best sources of criminal information. These records are public information and, depending on the county, usually include felony convictions, misdemeanor convictions, and active arrest warrants. There are 3074 counties* in the United States . Currently less than five percent have their records available electronically. Checking an applicant's county criminal record, therefore, means an investigator must physically go the County Courthouse(s) and do the records check. *Referred to in some states as "districts" or "parishes." Top Can't a criminal records check be done on a Statewide level? 37 of 50 States. All states except Nevada have what is called a "Central Repository" of criminal information. Of these 49 states, 12 allow record access only by government entities. Processing. While a statewide check is permitted in the remaining 37 states, access is cumbersome. Thirteen states require submission of a form unique to their state. Some states also require notarized forms or releases, while others require fingerprints. Processing time ranges from 1 - 8 weeks. Variances in Records. The information in the State Central Repository varies by state. For example:
What can I do to help get the best possible information in a background check? Use Employment Applications. Insist that applicants complete your application—legibly and in full detail. Use a Release. Also consider using a release that is not part of the Employment Application itself. Use the Right Vendor. |