Background check


A background check is a process used by an organisation or person to verify that an individual is who they claim to be, and check their past record to confirm education, employment history, and other activities, and for a criminal record. The frequency, purpose, and legitimacy of background checks vary among countries, industries, and individuals. An employment background check typically takes place when someone applies for a job, but it can also happen at any time the employer deems necessary. A variety of methods are used to complete these checks, including comprehensive database search and letters of reference.

History

In the United States

Pre-September 11 2001, background checks were less common and less intrusive. In the 2000s, background checks became far more common after 9/11. Government agencies such as the Transportation Security Administration and U.S. Department of Homeland Security were created afterwards to protect national security and safeguard American citizens. These agencies were tasked with examining airport security, pre-flight screening, and predicting potential terror attacks. The Federal Bureau of Investigation has a catalogue of DNA, fingerprints, and other means of identification for people with past criminal activity.

Purposes

There are 17 common types of background checks employers use to verify a new hire. The checks can include:
  • Criminal history
  • Past employment verification
  • Education verification
  • Reference check
  • Drug screening
  • Credit background check
  • Social media behavior check
  • Driving record
  • Professional license and certifications check
  • Social security number trace/identity check
  • Global sanctions check
  • Civil offenses check
  • Bankruptcy check
  • Financial regulations check
  • Psychometric tests
  • International background check
  • Gamer profile check
Each check is briefly explained along with its purpose and how it helps employers make informed hiring decisions.

Employment screening

Employers often request background checks on job candidates for employment screening, especially for candidates seeking a position that requires high security or a position of trust, such as in a school, courthouse, hospital, financial institution, airport, and government. Background checks in the corporate realm have become a commonplace practice for many companies, aimed at mitigating legal liabilities and preventing adverse actions within their workforce.
They can also be requested when purchasing a firearm. A government agency traditionally administers these checks for a nominal fee, but private companies can also administer them. Results of a background check typically include past employment verification, credit history, and criminal history. The objective of background checks is to ensure the safety and security of the employees in the organization.
These checks are often used by employers as a means of judging a job candidate's past mistakes, character, and fitness, and to identify potential hiring risks for safety and security reasons. Background checks are also used to thoroughly investigate potential government employees to be given a security clearance. However, these checks can sometimes be used for illegal purposes, such as unlawful discrimination, identity theft, and violation of privacy.
Checks are frequently conducted to confirm information found on an employment application or résumé/curriculum vitae. One study showed that half of all reference checks done on prospective employees differed between what the job applicant provided and what the source reported. They are also conducted as a way to differentiate potential employees further and pick the one the employer feels is best suited for the position. Employers are obligated to ensure their work environment is safe for all employees and helps prevent other employment problems in the workplace.

Firearms purchases

In the United States under the Gun Control Act of 1968, citizens and US residents must be 18 years or older to purchase shotguns, rifles, or ammunition. All other firearms – such as handguns – can only be sold to individuals 21 or older. Restricted firearms, suppressors, explosives or large quantities of precursor chemicals, and concealed weapons permits also require criminal checks. Checks are also required for those working in positions with special security concerns, such as trucking, ports of entry, and airports. Laws exist to prevent those who do not pass a criminal check from working in careers involving the elderly, disabled, or children.

Pre-employment screening

Pre-employment screening refers to the process of investigating the backgrounds of potential employees and is commonly used to verify the accuracy of an applicant's claims as well as to discover any possible criminal history, workers compensation claims, or employer sanctions.

Brazil

The Brazilian legal system prohibits discrimination against people. Many people consider background checks to be discriminatory.
Regulation and Laws on Background Checks
  • Brazilian Constitution, Article 3, IV
  • Brazilian Constitution, Article 5, X
  • Brazilian Constitution, Article 7, XXXI
  • Law No. 9.029/95

    Netherlands

It is the responsibility of the employer to treat all personal information collected from the employee as confidential information and to limit the access to this information within the organization. The employer cannot retain the personal information from the applicant and must have protective measures in case of data breach. The employer must give the applicant the ability to access the personal information being held about them. Dutch Data Protection Authority must be notified of the background check.
Restrictions and Laws on Background checks
The first Polish research on the issue of pre-employment screening shows that 81% of recruiters have come across the phenomenon of lies in the CVs of candidates for the job. It is the responsibility of the employer to collect necessary information and to protect it so that only certain people in the organization can access it. The applicant must receive a copy of the background check so that the applicant has the opportunity to make sure that the information in the background check is correct. The employer is not permitted to keep the personal information for a longer period than necessary.
Restrictions and Laws on Background checks
  • The Polish Constitution dated 2 April 1997
  • Article 8 of the European Convention on Human Rights
  • Act of 26 June 1974 on The Labour Code
  • Act of 24 May 2000 on National Criminal Records
  • Act of 4 March 1994 on the Company Social Fund
  • Act of 29 August 1997 on Personal Data Protection
  • Regulation of Work and Social Policy Minister dated 28 May 1996

    United Kingdom

The employer has to treat the personal information from the applicant as confidential. The applicant has to receive a copy of the background to check or update the information that appears on the background check. The employer can not retain the information more than it is necessary. The employer has to give any one who comes in contact with the information of the applicant a code of conduct. The company has to go through an audit to make sure they are complying and protecting the data.
Restrictions and Laws on Background Checks
During the 2008 financial crisis, the level of fraud almost doubled. Background-checking firm Powerchex claimed the number of applicants lying on their applications increased after the start of the 2008 financial crisis. In 2009, Powerchex claimed that nearly one in 5 applicants has a major lie or discrepancy on his or her application. Almost half of organizations with fewer than 100 staff experienced problems with vetted employees. The research shows how many failures occurred in the relationship between employer and employee over the years and what dangers it brings. Applicants usually lie about additional skills, dates of employment, responsibilities or positions.

Regulation

The Financial Services Authority states in their Training & Competence guidance that regulated firms should have:
  • Adequacy of procedures for taking into account knowledge and skills of potential recruits for the role
  • Adequacy of procedures for obtaining sufficient information about previous activities and training
  • Adequacy of procedures for ensuring that individuals have passed appropriate exams or have appropriate exemptions
  • Adequacy of procedures for assessing competence of individuals for sales roles
The Financial Services Authority's statutory objectives:
  1. Protecting consumers
  2. Maintaining market confidence
  3. Promoting public awareness
  4. Reducing financial crime

    United States

The employer must obtain consent from the applicant granting approval of the background check. The employer must be in accordance with the Fair Credit Reporting Act. The employers have to guarantee that they will not discriminate against the applicant.
Most notably, the Fair Credit Reporting Act regulates the use of consumer reports as it pertains to adverse decisions, notification to the applicant, and destruction and safekeeping of records. If a consumer report is used as a factor in an adverse hiring decision, the applicant must be presented with a "pre-adverse action disclosure," a copy of the FCRA summary of rights, and a "notification of adverse action letter." Individuals are entitled to know the source of any information used against them, including a credit reporting company. Individuals must also consent in order for the employer to obtain a credit report.
Restriction and laws on Background Check
  • Arrest and conviction records: Title VII of the Civil Rights Act of 1964; Cal. Lab. Code § 432.7; Cal. Lab. Code § 432.8; Cal. Pen. Code § 290.46; 775 ILCS 5/2-103; Job Opportunities for Qualified Applicants Act, 820 ILCS 75/15; N.Y. Correct. Law § 752; N.Y. Exec. Law § 296, ; 18 Pa.C.S. § 9125
  • Credit/financial checks: Consumer Credit Reporting Agencies Act, Cal. Civ. Code § 1785.13; Cal. Lab. Code § 1024.5; 820 ILCS 70/10
  • Health checks/medical screening: Americans with Disabilities Act, 42 U.S.C. § 12101, et seq.; Genetic Information Nondiscrimination Act, 42 U.S.C. § 2000ff, et seq.; Cal. Lab. Code § 132a
  • Social media: Cal. Lab. Code § 980; 820 ILCS 55/10
  • Record disposal: 16 CFR Part 682
  • Record keeping: 29 CFR Part 160
  • Records/information obtained from consumer reporting agencies, including but not limited to education and employment records, credit and financial records, and social media: Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq.; Consumer Credit Reporting Agencies Act, Cal. Civ. Code § 1785.13; Investigative Consumer Reporting Agencies Act, Cal. Civ. Code § 1786.18; Cal. Civ. Code § 1786.53
  • Political affiliation: D.C. Code § 2–1402.11; Wis. Stat. Ann. § 111.321
  • Polygraph tests: Employee Polygraph Protection Act, 29 U.S.C. §§ 2002, 2006; Cal. Lab. Code § 432.2; 225 ILCS 430/14.1; N.Y. Lab. Law §§ 733–739; 18 Pa.C.S. § 7321