Background Checks

The term "background checks" is used to refer to activities concerned with investigating the background of a company or an individual. Most companies conduct background checks on potential employees to determine whether they have criminal records. Such background checks will be important if the employee will be working closely with customers or will be handling money or financial information. Imagine the liability that you may be exposing your company to, if you negligently recruit a person with a history of forgery and fraud.

Conducting background checks is also a way to confirm the validity of information in a resume or employment application. This way, companies can stay assured that the employee can perform the job well and is reliable.

Some companies also conduct background checks on clients in order to screen non-payers and other kinds of potentially problematic clients. Such checks save the companies a lot of time and resources.

Many web sites and companies offer to do background checks on the Internet. They typically offer services such as criminal record search, employment verification, education verification, driving record, and credit check. The reports they provide can range from the verification of an applicant's Social Security number to a detailed account of the potential employee's history and acquaintances.

While conducting background checks, there are many laws to abide and many guidelines to follow. In the context of U.S., some important laws concerning background checks are:

• the Fair Credit Reporting Act (FCRA)
• the Driver's Privacy Protection Act (DPPA)
• the Gramm-Leach-Bliley Act (GLBA)

The Fair Credit Reporting Act defines the standards for employment screening. This was developed by the federal government to ensure that accurate and updated information is used when credit-reporting decisions are made. The Driver's Privacy Protection Act (DPPA) regulates how information from DMV records can be released and shared. The Gramm-Leach-Bliley Act was developed to regulate the release of information maintained by financial institutions.

Although several regulations and controversies are attached to background checks, more and more companies are resorting to scrutinizing potential employees' background because they realize that having qualified honest employees is critical to their success.

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