How Is an Employment Verification Background Check Done?

Large corporations are just one of the entities that verify employment through background checks.

There are several reasons why a potential employer conducts a background check on a job applicant. One reason is to verify an applicant's employment history. The issue of trust is one part of this type of search, but there have been cases of fraudulent claims that raise concerns about a person's ability to perform critical duties, especially if the position being filled is one that requires technical know-how or is involved with cash handling and customer identity information.

Typical Resources for Background Checks

Many sources of information for background checks come from public records. These include educational records, property ownership and certain court documents such as appearances in civil and criminal courts and bankruptcy proceedings (within statutes of limitation). Employment verification resources are not always in the public domain due to privacy rights afforded to all persons concerning their gainful employment history.

Third-Party Resources

There are many entities that provide employment screening services professionally. This includes private investigation companies, online data brokers and companies that specialize in background checks for employment screening purposes. Large corporations may have contracts with these types of entities due to the numerous background checks that occur as positions become vacant when employees retire or are terminated.

Professional Screening Companies

The National Association of Professional Background Screeners provides an online network of possible resources, and all that is required is a membership fee. This is one example of the thousands of online sources that are available to employers who are doing background checks for employment verification. This organization claims that there is a viable need for their services due to increases of employee theft and workplace violence.

Employment-Related Public Information

Some information concerning a person's employment background is public record. Worker's compensation claims fall into this category. Most states allow this information to be documented in public records through compensation appeals board rulings, although an employer may only access this information after a job has been offered to an applicant. Filing such a claim cannot result in a withdrawal of the offer, but an employer can discover the names of companies where a person was working when he filed a claim that he may not have disclosed in his application.

Credit Reporting and Background Checks

There are certain items of information related to employment verification that are part of an applicant's credit history. A tax lien against any person is a matter of public record but would not necessarily be the subject of a background check. A credit history check would reveal this information, however, and tax information included in a lien could include any past employers. The Fair Credit Reporting Act does mandate assurances that any information on a credit report that is in the public domain will be up to date and accurate, but this will not protect the applicant if she has provided false information to a prospective employer.

References

• NAPBS: Safe Screening, Safe Hiring
• Privacy Rights Clearinghouse: Fact Sheet 16
• Federal Trade Commission: The Fair Credit Reporting Act