What Information Can Employers Gain from Employee Background Checks?

Employee background checks should be carried out by all employers, irrespective of the size and nature of their business, and using a third party to help navigate and control this, is usually beneficial.

If you’ve recently started a business and are about to begin recruiting employees, you might be keen to learn more about the process behind employee background checks and what exactly is involved.

The standards for screening candidates for employment are set by the Fair Credit Reporting Act (FCRA), who define a background check as a consumer report.

Employers must notify all candidates in writing before getting a consumer report or running a credit check on them for employment purposes, and in some states, what an employer can check may be restricted.

What is an employee background check defined as, and who sets the standard for them?

Verifying employment history

Employment history includes all of the companies an employment candidate has worked for, their job titles, employment dates and salary earned.

Employers may conduct an employment history verification to confirm that the information provided on a candidates resume or application, is accurate, and is different from a background check.

Verifying education

The educational history of a job candidate includes the schools and colleges they attended, along with any professional accreditations they might have. As anemployer, you may also wish to check the dates they attended each institution.

Credit checks

Credit checks are being run on job applicants with increasing frequency nowadays, and the information contained within them can help employers determine a candidates suitability for a particular role, particularly if they’re involved in the financial sector.

What other information can employers seek?

Background checks don’t always provide employers with all the information they need, in which case you can request further details using the checks and tests listed below:

Criminal record checks

It’s best to seek guidance from a third party professional in your state of residence if wanting to carry out criminal record checks on job applicants, as the laws governing this may differ.

Drug and alcohol tests

If hiring a candidate hinges upon them passing a drug test and screening, you’ll want to make sure that you’re following all of the rules and guidance in your state for carrying this out. The best way of getting this done efficiently and within the confines of the law, is to outsource it to a professional payroll provider.

Eligibility to work in the U.S.

As an employer, you’re entitled to ask potential employees to prove their legal right to work in the U.S., and in fact, the government demands that you verify the identity and eligibility to work, of all new employees. This information can be ascertained using an Employment Eligibility Verification form (Form I-9), which you must have candidates complete, before filing it away.

References

Employers are legally permitted to be truthful about a former employee when it comes to references, contrary to popular belief, and are within their rights to report any bad behavior or negative traits to other potential employers.

Employee background checks are an important part of the screening process for employers, but staying within the confines of the law (which can vary from state to state) can be a bit of a minefield. To avoid any potential problems while still getting all the information you need about job applicants, try outsourcing your requirements to a payroll provider, and get reliable results, every time.

Apollo Payroll is dedicated to delivering expert advice, responsive service, and highly accurate payroll processing and reporting to ensure the success and growth of the business that we serve. Our services include comprehensive payroll services in Homestead and other cities in Miami-Dade County, employee background check and group health insurance in Miami & Coral Gables