Know the Rules Before Administering a Background Check

By: Jennifer Leahy
February 17th, 2011

Hiring employees to handle confidential information isn’t easy. Every applicant hired by Massachusetts-based OfficeDrop is constantly exposed to reams of personal data as they convert paper files from thousands of small business into an online database. Finding employees who could be trusted to protect such information was a tough task, says spokesman Healy Jones.

“We wanted to maintain a budget, but couldn’t afford any compromise to security, so it was important to make sure that only irrelevant or redundant checks were excluded, Jones says.  ”For example, we find county criminal record searches very valuable since security is paramount, but consumer credit reports are less relevant for our applicants.”

Though few will debate the necessity of background checks for some positions, there are several pitfalls employees must avoid when conducting pre-employment background screening.

Employers who opt to perform background checks must present candidates with a compliance form valid in all 50 states, and must have the applicant sign and date a background check authorization form, says John Page of Dallas-based Quick Search.

Recognizing that the initial information found on the Internet or in a national database may not be accurate is critical. It’s a big world and there are many people with the same name, and even the same name as well as date of birth. Establishing the identity of the candidate is the first step for any employer.

Obtaining multiple “identifiers” such as full name and previous names, date of birth, Social Security and driver’s license numbers is important when screening employees. Though it may sound simple, verifying that the Social Security number and associated data such as date of birth and addresses belong to the applicant is the first step in the process.

Some applicants with criminal backgrounds will attempt to use a relative’s Social Security number, warns Larry Lambeth, former chairman of the National Association of Professional Background Screeners (NAPBS) and president of Employment Screening Services Inc.

NAPBS recommends that employers develop a written screening policy and procedure as actions typically fall under the Fair Credit Reporting Act (FCRA). Criminal and driving histories, credit reports, and education and license verifications are all subject to the FCRA and any negative information that causes an employer to take adverse action against an applicant must be reported to the employee. Under the FCRA the candidate has an opportunity to correct or challenge the negative information.

About 40 percent of law enforcement agencies report to online databases. The information isn’t always accurate or current, so criminal histories should always be verified at the courthouse in the county where the alleged offense occurred, Page offers.

“The most up-to-date records are there. Someone could be charged with ‘X’ and later the charges were dismissed,” he says.

Employers should work to adhere to preset standards and determine which components of background checks are beneficial to their business.

A manager hiring delivery drivers, for example, will be more interested in driving records than one hiring for positions in child care.

Whether an employer elects to outsource background checks or perform them internally, they may also elect to learn more about candidates by searching social media sites.

“In addition to the background checks we paid for, we did our own personal research via Facebook, Myspace, Twitter and other social media resources, as well as doing a Google search of the applicant’s name,” Jones says.

“It takes a bit of work to ensure you have a fully background checked team, but a lot of the challenges are solved by knowing your own needs, narrowing down the searches to the specific searches important for your business needs, and finding a reputable service provider to help. Doing so has allowed us to perform thorough background checks on all employees with access to customer documents, leaving us confident that we’ve got the right team to keep our customers’ information secure,” he adds.

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