Understanding the Purpose of a Background Check

A background check is a process of verifying someone’s personal, professional, and criminal records. A background check is designed to help employers, landlords, and other organizations make informed decisions before hiring employees, renting out apartments, or providing people with access to sensitive information. Background checks provide factual information about a person’s education, employment history, credit history, criminal records, and more.

The main objective of a background check is to identify potential risks associated with a person’s history, character, and behavior. By conducting a background check, employers or landlords are able to protect their business or property from fraud, theft, violence, or other threats that may arise from hiring an individual with a risky history. Furthermore, background checks help to ensure a safe and secure working or living environment for all employees or residents.

Employment Background Checks: Employers often conduct background checks before hiring a new employee. They may verify the applicant’s education, work experience, criminal records, and other relevant information. The purpose of an employment background check is to assess the applicant’s suitability for the job, honesty, and trustworthiness. Employers want to ensure that they hire someone with a good work ethic, positive attitude, and a record of excellent job performance. Pre-employment screening is a standard practice for most companies and can be vital in selecting the right candidate from the pool of applicants.

Education Background Checks: Employers and universities may conduct education background checks to verify academic achievements, and information included in the applicants’ resumes such as degree or certification. These checks are conducted to confirm whether the applicant has attended the claimed educational institution, and if the qualifications hold true. Education background checks help employers to hire efficient and skilled employees while ensuring that their company functions operate at its full potential.

Criminal Background Checks: Many employers conduct criminal background checks to verify the applicant’s criminal history as well as check for drug-related offences or terrorism activities. Some jobs such as law enforcement, healthcare, and education may require the employee to have a clean criminal record. However, it is mandatory for employers to comply with the state and national labor laws to prevent discrimination based on arrest or criminal records. These checks enable employers to uphold the safety standards of their company and work environment.

Credit History: As part of the employment background check, some employers may choose to check the applicant’s credit history. While not all employers do this, it’s still a common practice and helps companies assess the applicant’s financial stability, to verify the information provided on the resume and also evaluate the employee’s risk of future financial misconduct.

Overall, background checks have become an integral part of the hiring process as they allow companies to make informed decisions, protect their customers, employees, and property.

What Information is Included in a Background Check?

Employers use background checks to verify a candidate’s identity and to look for any criminal or financial history that might raise concerns about their reliability or trustworthiness. The background check process is becoming more common across sectors and industries, so it’s important to learn what type of information can be found on your background check.

Background checks normally include an evaluation of criminal records, credit reports, and previous employment. Let’s dive deeper into each subtopic:

Criminal Records

A criminal record check is typically one of the first things employers or landlords investigate. This search may include looking at local, state, or federal records to evaluate an applicant’s past activities. Criminal records can include violent crimes, theft, drug charges and other offenses. The results of the criminal background check can impact the underwriting or approval process.

A criminal record check often shows a person’s criminal history, including any prior arrests, convictions, or pending court cases. The background check may show previous sentences, when they occurred, and whether the case is closed. If the check has any records, it typically indicates the type of crime, when they occurred and the sentence if any was served.

It’s essential to be truthful about any past crimes in a job application. Employers may ask candidates whether they have been arrested or convicted of a crime. Lying on an application can result in automatic disqualification or termination in the future. In such cases, you should be honest about your past and explain how you’ve changed over time.

Credit Reports

Employers will often obtain a credit report to evaluate a candidate’s ability to manage their finances. If you are applying to a role that involves managing a business’s finances or handling credit cards, you’ll likely have a credit check. Your credit history may provide clues regarding how well you manage money.

If a company is verifying a candidate’s credit report, they will search for information regarding any late payments, debt collections, bankruptcies, judgments or liens. Employers will use this information to assess how the employee balances his or her finances and determines their financial responsibility. If there are discrepancies or red flags in an employee’s credit history, employers may question whether they will behave dishonestly with money.

Previous Employment

When checking previous employment, employers might attempt to verify the timeline of your employment, the positions you held, your responsibilities, and job performance. A reference check gives a sense of how well candidates have met the performance standards set by previous employers.

While previous employers can give positive references, they can also provide negative ones. If the employer had concerns about the employee’s work performance, they may point that out during the reference check process. Some companies could mask this by only verifying employment history rather than providing a positive or negative review.

If you have been unemployed for a long period, it’s always a good idea to have at least one professional reference. A person who can attest to your experience and work ethic is much more appealing to employers than a candidate with no references. While the purpose of a reference check isn’t to conduct a deep investigation of past performances, it’s essential that the candidate can convey proof of his or her work experience.

Overall, background checks are not solely interested in catching the bad apples. Employers also want to better understand a candidate to access if they are a good fit for the position. Conducting background checks represents the company’s long-term investment in its employees and partners.

The Importance of Accuracy in Background Checks

Background checks are a critical part of the hiring process for many companies. They help employers to confirm an applicant’s identity, employment history, education, criminal record, and other relevant information to determine their suitability for the job. However, the importance of accuracy in background checks cannot be overstated. A false positive or negative can have serious consequences for both employers and applicants.

False positives occur when a criminal record or other negative information is incorrectly attributed to an applicant. This can result in the rejection of an otherwise qualified candidate, leading to a loss of potential talent for the company. False negatives occur when an applicant’s criminal record or other negative information is not reported in the background check. This can lead to hiring someone who is not qualified or even dangerous to the company.

The consequences of inaccurate background checks go beyond just the hiring process. If an employer relies on a faulty background check to make a decision that harms an employee, such as firing or denying a promotion, the company can face legal action. Conversely, if an applicant is harmed by inaccurate information in their background check, they can also take legal action against the employer or the screening company.

Therefore, it is essential that employers use reputable background check companies that are known for their accuracy and attention to detail. These companies should be able to provide references and demonstrate their track record of producing accurate reports. In addition, employers should review the information contained in the report carefully and follow up on any discrepancies or concerns that arise.

It is also important for applicants to review their own background report and address any errors or inaccuracies that are found. The Fair Credit Reporting Act (FCRA) requires background screening companies to provide individuals with a copy of their report upon request. If an error is identified, the applicant can dispute the information and request a correction.

Overall, accuracy is critical to the success of background checks. Employers must take the time to vet their screening providers and review reports carefully, while applicants must be vigilant about reviewing their reports and disputing inaccuracies. By ensuring that background checks are accurate and reliable, employers can make informed hiring decisions while protecting themselves and their workers.

Interpreting Results of a Background Check

After completing a background check, you may be wondering to yourself what exactly does the report show? How do you interpret the findings? Below are the different types of results you may see and how to understand them.

Criminal Record

A criminal record is the most common result that an employer requests in a background check. This report shows a list of any crimes or misdemeanors that the individual may have committed. Depending on the level of the check, it could go back as far as 7-20 years. The criminal record report will show details including the charges, sentences, and case numbers. If the individual has a criminal record, it’s up to the employer to decide if it’s relevant to the position they’re applying for.

Employment Verification

Employment verification is another typical result of a background check. The report shows an individual’s work history and whether they were in good standing or not. This report verifies all of the employer’s details such as dates worked, position, and reason for leaving. This information is important to ensure that the individual has not altered their work history or lied on their resume.

Educational Background

An educational background check is typically conducted on individuals who have graduated from college or university. The report shows if the individual graduated, what degree they received and the year of graduation. If an individual lies about their education, it’s fraud. Universities have sophisticated registration systems where a verification of enrollment and graduation is easily detected. A falsification of education is an easy find, and that might be enough to eliminate consideration for the job.

Credit Report

A credit report shows an individual’s creditworthiness. It shows any court judgments, bankruptcies, liens, and foreclosures. Employers can request credit reports for financial positions. However, the individual must consent to have their credit reports checked. Financial organizations prefer to have individuals with excellent credit to minimize their risk exposure.

Driving Records

A driving record is typically ordered when an individual is applying for a job that requires them to drive. The report shows any traffic violations, accidents, and criminal driving convictions. Transportation companies like taxi companies and trucking fleets require an annual driving record check on all their drivers.

Professional Licenses

Professional certifications and licenses should be verified. Employers want to be sure that the individual has the qualifications and is not practicing fraud. Credentials are checked for critical positions in healthcare, finance, law enforcement, engineering, and information technology.

Getting a comprehensive background check is essential for employers when hiring new employees. It gives them a sense of peace of mind knowing that they have done their due diligence in the hiring process. For employees, it’s essential to be upfront and honest about their history. Attempting to alter or hide information could expose them to allegations of fraud, lawsuit, and termination.

Navigating Legal Issues Related to Background Checks

Background checks are a common practice in many industries, ranging from healthcare to education, and even in volunteering. These checks are necessary to ensure that employers have accurate information about a person’s criminal history, employment history, and education. However, there are legal issues that employers need to navigate when it comes to background checks. These legal issues can stem from local, state, and federal laws. In this article, we’ll explore the legal issues related to background checks and how they can be navigated.

The Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA) is a federal law that regulates the collection and dissemination of consumer information, including employment background checks. The FCRA requires employers to obtain written consent from candidates before conducting a background check and provide a copy of the report if they decide not to hire the candidate based on the information found in the background check report. An employer must also provide a “pre-adverse action” notice to the candidate, stating that they are considering denying employment because of the information found in the background check report. Candidates then have a chance to dispute any inaccuracies in the report before the employer takes any final adverse action.

Ban the Box

Ban the Box is a movement to remove the checkbox on job applications that ask about a candidate’s criminal history. This movement started in response to employers using candidates’ criminal histories to make hiring decisions without considering factors like rehabilitation or redemption. Currently, over 150 cities and counties have implemented Ban the Box laws, and 36 states have similar laws that apply to government jobs. It is essential for employers to become familiar with their local and state Ban the Box laws to avoid any legal issues related to background checks.

Disparate Impact Discrimination

Disparate impact discrimination occurs when an employer’s policies have an adverse impact on a particular group of people in a protected class. For example, suppose the employer’s policy is to not hire any individuals with a criminal history. In that case, this policy can have a disparate impact on African Americans, who are more likely to have a criminal record. To avoid this type of discrimination, an employer must be able to demonstrate that their policy is job-related and consistent with business necessity. They must then provide an opportunity for candidates to explain their criminal history and how it does not affect their ability to perform the job’s essential functions.

The Americans with Disabilities Act (ADA)

The Americans with Disabilities Act (ADA) prohibits discrimination against individuals with disabilities in employment. This includes prohibiting employers from asking disability-related questions on job applications and during interviews. Employers can only ask these questions after a conditional job offer has been made. Background checks can sometimes reveal information about a candidate’s disability, which can lead to discrimination. To avoid legal issues, employers should ensure that the background check information they are seeking relates directly to the job’s specific duties and responsibilities and does not include any disability-related information.

The Age Discrimination in Employment Act (ADEA)

The Age Discrimination in Employment Act (ADEA) prohibits employers from using age as a deciding factor in their hiring decisions. This includes using age-related information found in a background check to make hiring decisions. Employers should ensure that they are not requesting or using information about a candidate’s age in their background check process, as this can lead to age discrimination legal issues.

Employers need to navigate legal issues related to background checks to avoid any legal implications that may arise. By understanding the laws and regulations governing background checks, employers can ensure that their hiring practices are both legal and ethical.