How Do I Do a Background Check on a New Employee?

Employers frequently wish to gather as much information as possible about a potential employee before offering them employment. A background check is often used to gather that information. There are a number of different types of background checks as well as different ways to accomplish them.

Types

Background check can mean different things to different people. Almost anything other than checking facts on previous employment is considered a consumer report. Under federal law, a consumer report is any written, oral or other communication made by a consumer reporting agency. An investigative consumer report includes actual interviews. Both are subject to the Federal Credit Reporting Act. These type of reports are not limited to credit information but include information regarding the applicant's general reputation and character.

Authorization

If an employer wishes to conduct a background check using an outside company to perform the check, the employer must first receive permission from the applicant. The permission must be separate and distinct from the application itself. Additionally, regardless of how the information is obtained, if an employer wishes to include medical information in a background check she must first get permission form the applicant.

Using a Company to Perform the Background Check

Many companies claim to perform background checks. Some are more reputable than others. Using a reputable company costs more than performing the search internally, but it saves a considerable amount of time. While a credit report can be done quickly, in most cases, criminal background checks must be done on a jurisdiction by jurisdiction basis and can be labor-intensive for the employer.

References

• Privacy Rights Clearinghouse: Small Business Owner Background Check Guide