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You Wanna Background Check Me? Well, Be Careful Where You Look ...

Written by Cindy Hanson and Kali Wilson Beyah Corporate Counse Monday, 26 July 2010 00:00

background and credit checks With the economy in disarray, employers are finding themselves inundated with job applications.

Increasingly, employers have turned to the use of background reports, such as criminal history and credit records, to assist in narrowing the applicant pool to a manageable level. According to one 2009 survey, 93 percent of the 1,411 employers questioned reported that they conduct criminal records checks on job applicants. Approximately half of those employers reported that they also check applicants' credit histories.

And who can blame them?

For the nominal fee of a comprehensive background check, an employer can get: (1) a glimpse of the person that is not revealed in the employment application (i.e. fiscal prowess, propensity for trouble, driving ability); (2) a potential shield from negligent hiring or retention suits; and, (3) hopefully, a significant decrease in their loss, fraud, and productivity issues.

Unfortunately, these employers are also getting something they did not bargain for. In addition to finding out the nitty-gritty of job applicants' histories, employers are also finding themselves as defendants in large, unexpected discrimination lawsuits brought by the U.S. Equal Employment Opportunity Commission (EEOC) as well as groups of private litigants.

Cindy Hanson and Kali Wilson Beyah

Corporate Counsel

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Author of this article: Cindy Hanson and Kali Wilson Beyah Corporate Counse

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