Ferreting out problems before they occur

Rob Basso has background checks run on job candidates before making the final decision to bring them on board. As president of Hicksville-based Advantage Payroll Service, which processes payrolls for companies, it's his job to make certain they're on "the up and up." After all, this potential hire would have access to clients' bank accounts.

So far, Basso said he has not uncovered anything suspicious about candidates who have made it to the background-check phase of the interview process. But while his hiring instincts have proved to be on the money, Basso still relies extensively on background checks for piece of mind.

"They're invaluable," Basso said. "They save you lots of headaches. A wrong hire could cost the reputation of your firm."

With the increase in incidents of identity theft, misuse of Social Security numbers and workplace violence, more companies are utilizing background checks as a means for scrutinizing a potential hire's past history. Background checks are also used as a tool in negligent hiring lawsuits.

But experts warn that pre-employment screenings must fall within the parameters of the law.

"Background checks are more prevalent since Sept. 11," said John McEntee, a partner at the Uniondale law firm, Farrell Fritz. "The Patriot Act of 2001 mandates that the FBI checks drivers of hazardous materials."

In cases of negligent hiring, employers could claim, "We weren't negligent because we did a background check. And it helps protect the employer from workplace violence," McEntee said.

Andrew Funk, president of Malverne-based Empire Research of New York, said the demand for background checks has increased steadily in the last five years. The company's services include identity checks, criminal histories, and motor vehicle and driving histories. It also checks if a candidate has a history of suing employees and checks the candidate's credit history.

But Rob Seiden, an attorney who specializes in civil and criminal litigation and investigation advisory services at the Great Neck law firm of Fischer & Burstein, added that the Fair Credit Reporting Act mandates that basic credit histories can be accessed only if the candidate provides signed written consent.

Funk recommends that clients disclose what kind of checks they'll perform and give the candidates the chance to reveal whatever might come up.

"There could be a logical reason" for any information that might seem suspicious, he said. "Maybe someone is hiding from an abusive boyfriend."

He also advises that clients ask for a chronological detailing of where candidates have lived. "If there is a gap, it could be suspicious."

Uncovering a candidate's criminal history can be delicate. "You can't refuse to hire simply because someone is convicted of a crime," McEntee said. "There has to be a direct relationship between the job and the conviction." For example, a banker could make the case for not hiring someone convicted of embezzlement, McEntee said.

An employer might also want to check that candidates have the licenses and earned the degrees they claim to have.

In addition to performing a background check, employers can do simple things-like check references-to make sure job candidates fit the bill. "Ask the reference if they know someone else who knows the candidate. You might get more candid answers that way," McEntee says.

When deciding to screen a candidate, the employer provides pertinent data such as the name, date of birth, last known address and, if possible, Social Security number to the investigator, Seiden said.

"The investigators, or in many instances, the data processors, check electronically by accessing a number of databases that are reserved only for professionals and licensed investigators who pay monthly or yearly access fees, similar to Lexis-Nexis. The work comes when they have to cross-reference these databases and generate a reliable and up -to-date dossier on the prospective employee," he says.

Results typically can be obtained within 72 hours. That's important for employers, who hesitate to wait much longer lest a quality candidate accept an offer elsewhere, Funk said.

Pam Bauman, director of human resources at The Alcott Group, a professional employer organization in Farmingdale, ensures that clients make effective hiring decisions while remaining compliant with federal, state and local regulations.

"Let your job candidates know that falsifying records or documents, such as the employment application, may be a barrier to employment and, if it is discovered after hire, it may be grounds for immediate termination," Bauman said. He advised checking with both a labor attorney and investigator before conducting pre-employment screenings.

"Pre-employment screening tools such as honesty and integrity tests, medical exams and polygraphs have very specific employment law guidelines due to privacy, validity and other issues that may challenge their use," she said. "Be careful that you do not use these methods of background checks before learning of their lawful uses."