Background Checks Grow...
Employer use of background checks to screen job candidates has gown significantly in the past several years. A recent survey by ADP Employer Services reports that use of background checks by employers has grown 16 percent in the past year.
Employment specialists suggest that post 9-11 security threats and the Enron - Arthur Anderson scandal resulting in criminal liability of key managers have prompted greater employer interest in carefully screening job candidates.
Employers report that rising insurance costs are another reason behind greater scrutiny of job candidates. Employers are seeking to reduce costly incidents of employee drug or alcohol abuse, job site and motor vehicle accidents, and theft.
According to Achievement Tec, a Dallas, Texas based assessment technology company specializing in employee background checks, another area concerning employers is the threat of an employee violence incident that harms co-workers, customers or the public. To make matters worse, such incidents sometimes are followed by a negligent hiring claim against the employer for failing to take reasonable steps to screen dangerous workers. An employer's failure to properly screen a violent employee could result in costly litigation.
The ADP Employer Services study reports that significant numbers of job candidates may have adverse finding in their background, such as:
Background Checks Grow
Among the background checks used by employers are checking employment references, confirming education, verifying professional credentials, checking driving record history, verifying credit history and evaluation of criminal records. While many human resources specialists have traditionally handled employment reference checks, growing numbers are now turning to professional organizations that specialize in conducting background checks.
It is recommended that the employer use an employment application that includes a signed statement by the candidate authorizing a reference or background check. Such applicant statement typically specifies that the provision of falsified information or significant omission of details are grounds to deny employment or to discharge an employee.
To avoid the likelihood of a privacy invasion claim, employers are cautioned to limit the focus of background checks to specific job related issues. Further, the employer is advised to use the information turned up solely for employment evaluation purposes.
Also, certain state or federal laws define requirements for applicant consent, notice or otherwise limit employer use of such information. For example, a candidate's arrest record should not be considered for preemployment purposes by an employer in general industry. Also, use of a credit check for employment purposes requires a separate notice and consent with follow-up action by the employer if an adverse employment decision is made because of the credit check report. For these reasons, the employer is advised to notify the candidate when a background check will occur and when required by law, to obtain a written consent.
William S. Hubbartt is a human resources and privacy consultant St. Charles, IL. www.Hubbartt.com. He is the author of "The HIPAA Security Rule - A Guide for Employers and Health Care Providers,"a 200+ page book in CD format.
