Pre-Employment Screening A Must For Employers

July 18, 2005 - Martha Lundin, Inside Tucson Business

What's the worst thing an employer can find out after hiring a new employee? That there should have been a good background check. It could have saved a lot of money, time and frustration and a lot more.

InfoLink Screening Services performs pre-employment background checks, drug testing and employment physical exams nationwide, including Tucson

Barry Nadell, president and co-founder of InfoLink, says background checks provide a wealth of information about potential employees.

A basic package of background checks should include a search of the court records in the counties where the person lived in the last seven years, a Social Security trace report to confirm the number, and a motor vehicle department report, he said.

Nadell recommends the motor vehicle report even if the job does not involve driving.

"You can tell a lot about a person from their motor vehicle report, including whether they were involved with drugs or alcohol," he said.

To assist employers in understanding the law and the role of background checks, Nadell authored a book, "Sleuthing 101, Background Checks and the Law," which includes relevant information about both federal and state laws.

Nadell cautions employers against choosing a background screening company just because it is the cheapest or has the quickest turnaround time.

"Some of these companies just check a certain database for information, which may not provide accurate or complete information," he said. "Databases can be useful as indicators of a problem, but not everything is available on the Internet.

"There are things an employer can do to advise job candidates that the company is serious about checking backgrounds and references, and it may save some money and time, too."

Nadell suggests the phrase "background checks required" should be included in all advertising seeking employees, including on company Web sites. Candidates should be told early in the process that background checks will be performed.

"An employer can put up signs in the reception areas that say background checks are required for job applicants, which may act as a deterrent for some people whose background might pose a problem," Nadell said.

Background information is available from a variety of sources: the Internet, government agencies, former employers, and other personal references, but the effort to retrieve information can be time-consuming.

"An employer can check these sources to follow up on a candidate, but the question is, what is that amount of time worth to the employer?" Nadell said. "For what it costs an employer to advertise, interview, hire, train, and pay a new employee, spending money on background checks is worth it.

If nothing else, an employer should check the court records in the candidate's county of residence."

How an employer uses the information gathered in background checks is important, too, because of state and federal laws that restrict what information may be used in hiring decisions. Sally Simmons, a partner at the law firm of Lewis & Roca who specializes in employment law, says that employers need to remember they cannot consider an arrest record in making employment decisions because it may result in discriminatory hiring practices.

"You can consider the conviction record if the convictions are related to the type of job you're hiring for, but the arrest record alone should not be considered," she said.

Simmons recommends that employers take time to check references from previous employers.

"That's one of the essential factors in doing a check. Employers should also read the application very carefully to see if there are gaps that need an explanation. If there is a gap between jobs, was the candidate going to school during that time or in prison? The gaps need to be explained," she said.

The Fair Credit Reporting Act plays a central role in regulating the process for checking a job candidate's background. Among other things, the Act permits background-checking agencies to provide reports to employers for employment purposes if the employee is informed in writing of the intent to obtain such a report and has given written authorization to the employer to obtain it.

Simmons advises that it is important that both the employer who uses an outside agency to run background checks and the agency itself be familiar with and in compliance with Fair Credit Reporting Act requirements to avoid legal problems.

Using a well-prepared application form is also important.

"The job application form should contain statements that an employee acknowledges that if the employer finds that information in the application has been falsified by misrepresentation or omission, the employer reserves the right to terminate that employee," Simmons said.

Temporary employees also pose risks for employers, because employment agencies may not check backgrounds before placing a temporary worker.

Gregg Carroll, Arizona market manager for the Staffmark employment agency, agrees that pre-employment background checks are becoming increasingly important.

"Employers want to surround themselves with good people and don't want to put their employees in jeopardy or put their reputations on the line," he said, "We run whatever background checks and tests are required by the employer."

Carroll says that employers have varying needs for background checks.

"Call centers, for example, have high stakes in hiring employees who can handle proprietary information such as credit card numbers," said Carroll. "It only takes one person doing something they shouldn't be to start a big problem for the company."

Martha Lundin may be contacted by e-mail at mlundin@azbiz.com or call (520) 295-4259.