Background check

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Jump to: navigation, search A background check or background investigation is the process of looking up and compiling criminal records, commercial records and financial records (in certain instances such as employment screening) of an individual. Background checks are often re uested !y employers on "o! candidates, especially on candidates seeking a position that re uires high security or a position of trust, such as in a school, hospital, financial institution, airport, and government. #hese checks are traditionally administered !y a government agency for a nominal fee, !ut can also !e administered !y private companies. $esults of a !ackground check typically include past employment verification, credit score, and criminal history. #hese checks are often used !y employers as a means of o!"ectively evaluating a "o! candidate%s ualifications, character, fitness, and to identify potential hiring risks for safety and security reasons. Background check is also used to thoroughly investigate potential government employees in order to !e given a security clearance. &o'ever, these checks may sometimes !e used for illegal purposes, such as unla'ful discrimination (or employment discrimination), identity theft, and violation of privacy.

Contents
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* +re,employment screening o *.* -creening applications in the ./ o *.0 #he market o *.1 #ypes of checks o *.2 $egulation 0 +re,employment screening in the ..-. o 0.* 3a's o 0.0 Florida 3a' o 0.1 #ypes of checks 1 $easons 2 +ossi!le information included 4 5ontroversies 6 +u!lic records pay sites 7 -ee also 8 $eferences 9 :;ternal links

[edit] Pre-employment screening

+re,employment screening refers to the process of investigating the !ackgrounds of potential employees and is commonly used to verify the accuracy of an applicant%s claims as 'ell as to discover any possi!le criminal history, 'orkers compensation claims, or employer sanctions.

[edit] Screening applications in the UK

A num!er of annual reports, including B<= -toy &ay'ard%s Fraudtrack 2(*) and 5>FA-%s (0) (the ./%s fraud prevention service) %#he :nemy Within% have sho'ed a rising level of ma"or discrepancies and em!ellishments on 5?s over previous years. -uch !usiness fraud cost .nited /ingdom !usinesses @*.2 !illion in 0AA4.(1). Almost half (28B) of organiCations 'ith fe'er than *AA staff e;perienced pro!lems 'ith vetted employees. #hirty,nine percent of ./ organiCations have e;perienced a situation 'here their vetting procedures have allo'ed an employee to !e hired 'ho 'as later found to have lied or misrepresented themselves in their application. -ince the onset of the Financial crisis of 0AA7D0A*A, the level of fraud has almost dou!led and some e;perts have predicted that it 'ill escalate further.(2) Annual research !y +o'erche; has also sho'n that the num!er of applicants lying on their applications has !een increasing steadily since the summer of 0AA7 'hen the financial crisis of 0AA7D 0A*A !egan.(4) As of August 0AA9, nearly one in 4 applicants have ma"or lie or discrepancy on their application.(6)

[edit] The market

3arger companies are more likely to outsource than their smaller counterparts D the average staff siCe of the companies 'ho outsource is 1,1*1 compared to 0,*60 for those 'ho carry out in,house checks. Financial services firms had the highest proportion of respondents 'ho outsource the service, 'ith over a uarter (06B) doing so, compared to an overall average of *6B 'ho outsource vetting to a third party provider. #he construction and property industry sho'ed the lo'est level of outsourcing, 'ith 89B of such firms in the sample carrying out checks in,house, making the overall average *6B. #his can increase over the years.

[edit] Types o checks

:mployment $eferences

:ducation ?erification , -chool grades, degree and any professional ualifications o!tained 5haracter $eference 5heck Eaps in employment history >dentity and Address ?erification , 'hether the applicant is 'ho he or she claims to !e. Eenerally includes verification of the candidateFs present and previous addresses. 5an include a money laundering, identity and terrorist check and one to verify the validity of passports. Whether an applicant holds a directorship 5redit &istory , !ankruptcies 5riminal &istory $eport

[edit] !egulation
#he Financial -ervices Authority states in their #raining G 5ompetence guidance that regulated firms should have:

Ade uacy of procedures for taking into account kno'ledge and skills of potential recruits for the role Ade uacy of procedures for o!taining sufficient information a!out previous activities and training Ade uacy of procedures for ensuring that individuals have passed appropriate e;ams or have appropriate e;emptions Ade uacy of procedures for assessing competence of individuals for sales roles

#he Financial -ervices AuthorityFs statutory o!"ectives: *. 0. 1. 2. +rotecting consumers Haintaining market confidence +romoting pu!lic a'areness $educing financial crime

#he F5$A (Fair 5redit $eporting Act) is the most important regulation governing !ackground screening.

[edit] Pre-employment screening in the U"S"

[edit] #a$s
<ue to the sensitivity of the information contained in consumer reports and certain records, there are a variety of important la's regulating the dissemination and legal use of this information. Host nota!ly, the Fair 5redit $eporting Act (F5$A) regulates the use of consumer reports ('hich it defines as information collected and reported !y third party agencies) as it pertains to adverse decisions, notification to the consumer or applicant, and destruction and safekeeping of records.

>f a consumer report is used as a factor in an adverse hiring decision, the consumer must !e presented 'ith a Ipre,adverse action disclosure,J a copy of the F5$A summary of rights, and a Inotification of adverse action letter.J 5onsumers are entitled to kno' the source of any information used against them including a credit reporting company. 5onsumers must also consent in order for the employer to o!tain a credit report.

[edit] %lorida #a$

Florida &ouse Bill &A774, passed in *999, provides protection for employers from negligent hiring lia!ilities, provided they attempt to conduct certain screening procedures. :mployers 'ho follo' these steps 'ill !e presumed not to have !een negligent 'hen hiring if a !ackground check fails to reveal any records on an applicant. #hese steps are(7):

=rdering a Florida state criminal record check #aking reasona!le efforts to contact an applicants past employers Asking the applicant on the application if they have !een convicted of a crime, date of crime and penalty imposed Asking the applicant on the application if they 'ere the defendant in a civil action for intentional tort A driving record must !e ordered if it is relevant to the performed 'ork #he employer must intervie' the applicant

[edit] Types o checks

#here are a variety of types of investigative searches that can !e used !y potential employers. Hany commercial sites 'ill offer specific searches to employers for a fee. -ervices like these 'ill actually perform the checks, supply the company 'ith adverse action letters, and ensure compliance throughout the process. >t is important to !e selective a!out 'hich pre,employment screening agency you use. A legitimate company 'ill !e happy to e;plain the process to you. Hany employers choose to search the most common records such as criminal records, driving records, and education verification. =ther searches such as se; offender registry, credential verification, skills assessment, reference checks, credit reports and +atriot Act searches are !ecoming increasingly common. :mployers should consider the position in uestion 'hen determining 'hich types of searches to include, and should al'ays use the same searches for every applicant !eing considered for one position.

[edit] !easons
#hey are fre uently conducted to confirm information found on an employment application or rKsumKLcurriculum vitae. =ne study sho'ed that half of all reference checks done on prospective employees differed !et'een 'hat the "o! applicant provided and 'hat the source reported.(8) #hey may also !e conducted as a 'ay to further differentiate potential employees and pick the one the employer feels is !est suited for the

position. As 'orkplace violence !ecomes more of an issue and other serious concerns since the -eptem!er **, 0AA* terrorist attacks, employers are !ecoming more concerned a!out the people they hire.(9)(*A) :mployers have an o!ligation to make sure their 'ork environment is safe for all employees and helps prevent other employment pro!lems in the 'orkplace.(**)(*0)(*1)(*2)(*4)(*6) >n the .nited -tates, the Brady Bill re uires criminal checks for those 'ishing to purchase handguns from licensed firearms dealers. $estricted firearms (like machine guns), suppressors, e;plosives or large uantities of precursor chemicals, and concealed 'eapons permits also re uire criminal checks. 5hecks are also re uired for those 'orking in positions 'ith special security concerns, such as trucking, ports of entry, and airports (including airline transportation). =ther la's e;ist to prevent those 'ho do not pass a criminal check from 'orking in careers involving the elderly, disa!led, or children.

[edit] Possible in ormation included

#he amount of information included on a !ackground check depends to a large degree on the sensitivity of the reason for 'hich it is conductedMe.g., some!ody seeking employment at a minimum 'age "o! 'ould !e su!"ect to far fe'er re uirements than some!ody applying to 'ork for a la' enforcement agency such as the FB> or "o!s related to national security. 5riminal, arrest, incarceration, and se; offender records #here are several types of criminal record searches availa!le to employers, some more accurate and up to date than others. Hany 'e!sites offer the NinstantN !ackground check, 'hich 'ill search a compilation of data!ases containing pu!lic information for a fee. #here are also other data!ase,type criminal searches, such as state'ide repositories and the national crime file. A commonly used criminal search !y employers 'ho outsource is the county criminal search. 5itiCenship, immigration, or legal 'orking status #he hiring of illegal 'orkers has !ecome an issue for American !usinesses since the forming of the <epartment of &omeland -ecurity and its >mmigrations and 5ustoms :nforcement(>5:) division. Hany history making immigration raids(*7) over the past t'o years have forced employers to consider including legal 'orking status as part of their !ackground screening process. All employers are re uired to keep government Form >,9 documents on all employees and some states mandate the use of the federal :,verify program to research the 'orking status of -ocial -ecurity num!ers. With increased concern for right,to,'ork issues, many outsourcing companies are sprouting in the marketplace to help automate and store Form >,9 documentation. -ome "o!s are only availa!le to citiCens 'ho are residents of that country due to security concerns. 3itigation records :mployers may 'ant to identify potential employees 'ho routinely file discrimination la'suits. >t has also !een alleged that in the ..-., employers that

do 'ork for the government do not like to hire 'histle!lo'ers 'ho have a history of filing qui tam suits. <riving and vehicle records :mployers that routinely hire drivers or are in the transportation sector seek drivers 'ith clean driving recordsMi.e., those 'ithout a history of accidents or traffic tickets. <epartment of Hotor ?ehicles and <epartment of #ransportation records are searched to determine a ualified driver. <rug tests <rug tests are used for a variety of reasonsMcorporate ethics, measuring potential employee performance, and keeping 'orkers% compensation premiums do'n. :ducation records #hese are used primarily to see if the potential employee had graduated from high school (or a E:<) or received a college degree, graduate degree, or some other accredited university degree. #here are reports of -A# scores !eing re uested !y employers as 'ell. :mployment records #hese usually range from simple ver!al confirmations of past employment and timeframe to deeper, such as discussions a!out performance, activities and accomplishments, and relations 'ith others. Financial information 5redit scores, liens, civil "udgments, !ankruptcy, and ta; information may !e included in the report. 3icensing records A government authority that has some oversight over professional conduct of its licensees 'ill also maintain records regarding the licensee, such as personal information, education, complaints, investigations, and disciplinary actions. Hedical, Hental, and +hysiological evaluation and records #hese records are generally not availa!le to consumer reporting agencies, !ackground screening firms, or any other investigators 'ithout documented, 'ritten consent of the applicant, consumer or employee. Hilitary records Although not as common today as it 'as in the past fifty years, employers fre uently re uested the specifics of one%s military discharge. -ocial -ecurity Oum!er (or e uivalent outside the .-). A fraudulent --O may !e indicative of identity theft, insufficient citiCenship, or concealment of a Npast lifeN. Background screening firms usually perform a -ocial -ecurity trace to determine 'here the applicant or employee has lived. =ther interpersonal intervie's :mployers may investigate past employment to verify position and salary information. Hore intensive checks can involve intervie's 'ith any!ody that kne' or previously kne' the applicantMsuch as teachers, friends, co'orkers, neigh!ors, and family mem!ersP ho'ever, e;tensive hearsay investigations in !ackground checks can e;pose companies to la'suits. +ast employment and personal reference verifications are moving to'ard standardiCation 'ith most companies in order to avoid e;pensive litigation.

[edit] Controversies
<rug tests and credit checks for employment are highly controversial practices. According to the +rivacy $ights 5learinghouse, a pro"ect of the .tility 5onsumers% Action Oet'ork (.5AO): NWhile some people are not concerned a!out !ackground investigations, others are uncomforta!le 'ith the idea of investigators poking around in their personal histories. >n,depth checks could unearth information that is irrelevant, taken out of conte;t, or "ust plain 'rong. A further concern is that the report might include information that is illegal to use for hiring purposes or 'hich comes from uestiona!le sources.N >n Hay 0AA0, allegedly improper post,hire checks conducted !y Oorth'est Airlines 'ere the su!"ect of a civil la'suit !et'een Oorth'est and *A,AAA of their mechanics. >n the case of an arrest that did not lead to a conviction, employment checks can continue including the arrest record for up to seven years, per Q 6A4 of the Fair 5redit $eporting Act: Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing . . . Civil suits, civil udgments, and records of arrest that from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, !hichever is the longer period. -u!section (!) provides for an e;ception if the report is in connection 'ith Nthe employment of any individual at an annual salary 'hich e uals, or 'hich may reasona!ly !e e;pected to e ual @74,AAA, or moreN(*8). -ome proposals for decreasing potential harm to innocent applicants include:

Furnishing the applicant 'ith a copy of the report !efore it is given to the employer, so that any inaccuracies can !e addressed !eforehandP and Allo'ing only conviction (not arrest) records to !e reported.

>n Oe' Realand, criminal checks have !een affected !y the 5lean -late Act 0AA2, 'hich allo's individuals to legally conceal Nless seriousN convictions from their records provided they had !een conviction,free for at least seven years. >n Hichigan, the system of criminal checks has !een criticiCed in a recent case 'here a shooting suspect 'as a!le to pass an FB> check to purchase a shotgun although he had failed the check for a state handgun permit. According to the spokesman of the local police department, ... you could have a clear criminal history but still have contacts !ith la! enforcement that !ould not rise to the level of an arrest or conviction "that can be

used# to deny a permit !hether or not those involved arrests that might sho! up on a criminal history.(*9) #he Brady 5ampaign to +revent Eun ?iolence has criticiCed the federal policy, 'hich denies constitutional rights !ased on a criminal check only if the su!"ect has !een accused of a crime.

[edit] Public records pay sites

#aking advantage of pu!lic records availa!ility in the .nited -tates, a num!er of We! !ased companies !egan purchasing ..-. pu!lic records data and selling it online, primarily to assist the general pu!lic in locating people. Hany of these sites advertise !ackground research and provide employers andLor landlords 'ith fee,!ased checks. #here has !een a gro'ing movement on the 'e! to use advertising,!ased models to su!sidiCe these checks. #hese companies display targeted ads ne;t to the reports delivered to landlords or employers. -ome of the reports provided !y these pay sites are only e;panded versions of a !asic people search providing a 0A year history of addresses, phone num!ers, marriages and divorces, !usinesses o'ned and property o'nership. .sually, these sites 'ill also provide a nation'ide criminal report for an added charge.