Background Checks Affecting Employers

Different types of background checks include a criminal records check, credit check, reference check, driver’s record check, and a social media check. In considering an applicant’s criminal history, employers will gather information in one of two ways: applicant self-reports on a job application or a criminal history check conducted by an outside vendor. An employer must consider the relevance of the offense to the position being applied for or currently holding, to include severity, likeliness to happen again, and time passed since the offense. Due to the high rate of workplace violence and negligent hiring suits, employers may avoid hiring applicants with criminal backgrounds to avoid the cost of court litigations.
When conducting background checks a company must comply with the Fair Credit Reporting Act (FCRA), as well as not violate any federal or state equal opportunity laws or regulations. Background checks that are handled improperly can lead to liability for employers through two main areas: violation of human rights legislation and violation of privacy laws. The FCRA requires that …show more content…
Many negligent hiring claims involve incidents of employee violence in where consequences surrounding the incident far outweigh the time and cost of taking the steps to prevent them. Negligent hiring can lower your company’s’ morale, hinder productivity, and drastically affect customer and employee relations. If an employer takes the proper steps to prevent negligent hiring they can reduce the high cost of turnover, and reduce losses from employee theft, fraud, drug and alcohol abuse, workplace violence, and litigation. A company will also increase productivity through hiring employees with better work habits, attitudes and practices. An employer may also receive discounts for background checks from their insurance company to prevent such