Pre-Employment Background Checks: How Deep Can You Dig?

Hiring new employees can be … scary. Someone who seems smart and personable during the interview process may have skeletons too big to fit in the company closet.

Pre-employment background checks are absolutely essential. Sometimes, however, it may be hard to know just how deep you can dig. While it’s perfectly acceptable to perform a Google™ search, you cannot (in most cases) make prospective employees take a lie-detector test.

For a comprehensive look at the dos and don’ts of pre-employment background checks, go to the SBA’s Business.gov site where you’ll find two important pages: One page that provides a list of resources on employment and labor laws, and one page that provides detailed information on pre-employment background checks.

I’ve mapped out below some of the basic information included on the Business.gov pages, as well as additional places you can turn – such as the FBI and the FTC – for more information on what you can and cannot ask candidates to do, and what you can and cannot do in your hiring process.

Public Information

Every company should perform the basics – call references, check past employment, and do an Internet search. I am continually amazed at how many companies do not do this basic research. It is well worth your time. Don’t skip this, no matter what.

There is also a good amount of public information available (about all of us). For example, bankruptcies and worker’s compensation claims are a matter of public record. Gather all the information you can – there is no harm or foul here. What you do with this information is a separate issue.

Digging Deeper

Beyond public information, there are several things about which you can legally ask the prospective employee. For example, under the Fair Credit Reporting Act (FCRA) you may ask an employee for written permission to access his/her credit report. Once again – what you do with that information is a completely separate issue, but you’re legally allowed to ask. The Federal Trade Commission provides a page on its website with detailed information on credit reports – your rights and your prospective employee’s rights. It’s worth reading. But when it comes to other ways of digging deeper, like a license plate lookup, you should be careful not to cross personal lines.

Does your prospective employee have a criminal record? This is, as you might imagine, a touchy subject. The FBI website provides a page of information dedicated to answering that question, and giving specific advice and instructions on requesting a criminal history record. In fact, the FBI has a complete Freedom Of Information Act (FOIA) website here: https://foia.fbi.gov.

More Research, Less Risk

The reality is, every new employee you hire presents a risk to your organization. Perhaps the prospective employee will turn out to be your best asset; he/she may also turn out to be your greatest liability. There’s a lot of information available to you. Do your research. The deeper you legally dig, the more you can reduce your risk – and sleep better at night.