In an ideal world, everyone would be truthful on a job application, but sadly, that’s not always the case. It’s not uncommon for applicants to misrepresent themselves in an interview or falsify a resume. To avoid hiring someone who isn’t qualified or poses a risk to their organization, employers regularly perform background screenings.
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What is background screening for employment?
A background screening is the process of using third-parties (usually professional background screening providers) to properly vet candidates for career opportunities. Sources may include public records, law enforcement, credit bureaus and previous employers.
Why are pre-employment background checks important?
Without background checks, employers have only the information supplied by the applicant to form the basis of their hiring decision. Such details may not be accurate or complete. Background screenings allow employers to get a more complete picture of a candidate, which may help them:
- Hire the most qualified people and improve productivity
- Prevent instances of theft and other criminal behavior
- Avoid workplace harassment and safety issues
- Preserve company reputation and brand image
While all organizations may benefit from background checks, the importance of screening services cannot be understated in industries or roles involving children or access to sensitive data.
Health-care employee background checks
Hiring the wrong person in the medical field can be a matter of life and death. As such, hospitals and health-care facilities have a legal duty to employ people who do not present an undue risk of harm to patients and other staff members while performing their job duties.
Health-care organizations that commit hiring indiscretions may be excluded from receiving federal assistance (e.g., Medicare and Medicaid) by the Department of Health and Human Services. They also risk allegations of negligence and medical malpractice lawsuits if their staff members make mistakes.
Education employee background checks
Employing trustworthy, quality educators is one of the most important responsibilities of a school administrator. Considering that the well-being of students is on the line, thorough background checks should unquestionably be a deciding factor in the hiring process.
There are several federal resources that can help educational facilities ensure the integrity of their teachers. These include the Adam Walsh Act, the National Sex Offender Registry and the Uniform Conviction Information Act (UCIA). Educator screening regulations and resources exist at the state level as well.
Religious organization employee background checks
Religious organizations are often thought of as a place of refuge and security. That’s why it’s imperative to conduct a background check on employees and volunteers to ensure the safety of all employees, faith members and property. Screening services can help prevent the following:
- Youth abuse – Employees and volunteers may work very closely with vulnerable members of the population, including children. Religious organizations should check the nationwide sex offender registry to minimize the possibility of a convicted sex offender becoming a volunteer or employee.
- Theft and embezzlement – Religious organizations often have valuable assets that may be subject to theft or fraud if handled by the wrong person.
- Transportation issues – Any employee or volunteer tasked with operating a vehicle on behalf of the religious organization should have their motor vehicle records checked to ensure they are safe and responsible on the road.
- Reputational damage – Hiring employees and appointing volunteers with clean background checks can help ensure that religious organizations do not lose public trust, donor support or government funding.
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Download NowWhat does a typical employment background check consist of?
With some notable exceptions, a background check might reveal the following details:
- Employment history
- Education history
- Criminal history
- Credit reports
- Driving records
Not all of this information may be permissible or even necessary for every role. For instance, driving records are typically not requested unless the employee will be operating a vehicle as part of their job. There are also various federal and state regulations that govern when an individual’s criminal history and credit report may be accessed.
Employment history
Some candidates may falsify their employment history, especially if they know their work experience will be used to determine their suitability for a role. To help avoid hiring an unqualified candidate, employers should verify the following information via a background check:
- Length of previous employment
- Titles held
- Job responsibilities
- Reasons for leaving the position
Educational achievements
In addition to work history, educational achievements may also be fabricated to make candidates appear more qualified. Employers can spot the deception by asking applicants to submit academic transcripts. They may also contact the schools and universities listed on the application to verify the candidate’s attendance or degrees earned.
Criminal history*
Organizations often conduct criminal background checks on applicants to avoid negligent hiring claims. However, they must comply with the Equal Opportunity Commission's (EEOC) guidance on individualized job assessment and ensure they use credible and defensible data sources. For this reason, many employers engage specialized firms to conduct criminal background checks for them.
Credit history*
Organizations need compelling reasons to focus on an applicant's credit history during the application process. Generally, credit checks only apply to roles that involve interaction with the funds and financial records of the company or its customers.
Driving record
Driving records reveal the status, class and validity of a license, as well as any instances of driving-related arrests and convictions. Scrutinizing this information is essential with employees who operate vehicles as part of their jobs. Failure to do so can create significant legal risk for employers if the workers are involved in an accident while conducting company business.
*Note: Applicants denied employment based on either their criminal or credit history in a background check report must be supplied pre-adverse and final adverse notices according to the Fair Credit Reporting Act. Employers may also have to comply with the adverse action requirements of any applicable state and local fair chance laws.
How does an employee background check work?
Background screenings pose compliance risks if not done correctly. Here’s how smart employers typically vet potential new hires:
- Make an offer
It’s generally best practice to not run a background check until after a candidate is offered conditional employment. - Obtain consent
The federal Fair Credit Reporting Act (FCRA) and similar state laws require employers to provide written notification to and obtain authorization from any individual subject to background checks performed by third parties, e.g., professional background screening providers. - Disclose the screening process
Employers must notify the applicant or employee that they might use information from a background check to make employment-related decisions. This notice has to be in writing and in a stand-alone format. It cannot be part of an employment application. Some minor additional information can be included, such as a brief description of the nature of the background report, but only if it doesn’t confuse or detract from the notice itself. - Apply screening policies consistently
Running background checks on certain groups of people and not others may be considered discriminatory and illegal. The Equal Employment Opportunity Commission (EEOC) provides guidance on considering an individual’s criminal history when making employment decisions and, among other things, states that such decisions must be job-related and consistent with business necessity. - Consult legal counsel if adverse action is warranted
The FCRA requires employers to follow certain steps when taking adverse action against an individual (e.g., failing to hire) based on the results of a background check. Employers should consider consulting with counsel before proceeding further.
What to look for when choosing a background screening service
Reputable third-party providers that specialize in background screening services can help businesses save time and money and reduce the chance of error. When evaluating potential partners, employers tend to look for:
- Support with federal, state and local regulatory compliance, including FCRA and EEOC guidelines
- Integrations with top applicant tracking and recruitment management systems
- Strict data privacy and security procedures
- Customizations that help companies meet unique industry requirements or organizational hiring policies
- All-inclusive pricing with no hidden fees
Frequently asked questions about background screenings for employment
What causes a red flag on a background check?
Employers determine their own policies for whether or not an applicant meets their hiring standards. Typical items of concern that may return on a background check include, but are not limited to criminal convictions, failed drug tests, traffic violations, poor credit scores and inconsistencies in employment history. Any employment decision taken as a result of these concerns must be job-related and based on business necessity. Employers should consult with EEOC guidance on using criminal history information in making hiring decisions to help ensure they do not disproportionately screen out protected individuals.
How far back do background screenings look?
Under FCRA rules, non-conviction civil actions, tax liens and credit history may appear on a pre-employment screening for seven years. Criminal convictions may be available indefinitely. Some states have shorter or longer lookback periods for certain records.
How long does a background check take?
The length of time for a background check typically ranges from as little as two days to as much as a week or longer. Court and agency backlogs, holidays and information requested from outside the United States may extend this timeline. HR teams can sometimes help speed the process by collecting all necessary candidate data up front and automating adverse action workflows.
This article is intended to be used as a starting point in analyzing background screenings and is not a comprehensive resource of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services.
