Background on Background Checks

Christy, I interviewed with a company and I’d like the job. They want to do a background check on me though. Is this legal? I don’t have anything to hide, but really? — Andrea

Thanks for your question, Andrea. Although I understand your discomfort, background checks are legal and a common practice. In fact, about 80 percent of employers conduct background checks – and for good reason. 

The most common reason Human Resources managers conduct background checks is to protect its employees and the company. 

Workplace violence is a great concern for everyone. If you work for a company that screens employees, you can be more confident that your coworkers don’t bring a history of violence or dishonesty. 

Productivity also is in the spotlight in difficult economic times. Because you want the company to be successful, you’ll want to know that your coworkers possess the experience and qualifications they say they do. A company needs be diligent to ensure they hire qualified people. 

When an employer tells you they will do a background check, it isn’t clear exactly what they will review. Some employers simply make calls to check your references and verify your dates of previous employment while others pay outside companies for more comprehensive background reports. More and more frequently, employers are using social networking sites to learn about you. (See ".")

Understandably, this process can be uncomfortable. The Fair Credit and Reporting Act, a federal law, does give you rights as an applicant. Generally, companies must: 

• Give you a written notice that they will do a background check
• Ask you to sign a release form before they check records like criminal convictions, driving records or educational credentials
• Give you a separate notice if they are going to conduct references 

If you are denied employment based on information they receive in a report, you must be given a copy of the report and a notice of your legal rights. If you believe the information is incorrect, you can inform the screening agency and they must correct the information within 30 days. 

New Illinois law further protects your rights. Effective January 1, 2011, the Employee Credit Privacy Act was passed forbidding employers from inquiring about an applicant’s or an employee’s credit history or obtaining a copy of their credit report. 

If you want the job, Andrea, it is clear that you will have to submit to the background check. Here are some things you can do to proactively manage the process. 

Select your references carefully. It is common for employers to check three references but you probably want to have a list of at least six potential references to ensure the right people give the right information. Talk with each person at length to ensure they will be 100 percent supportive. This seems obvious but in my HR career, I have been surprised to obtain a number of negative references over the years. 

Prepare your references. Reference checks are usually conducted after one or two interviews. As the time draws near for the check, give each person a heads-up and coach them on what to highlight for that specific job. Review dates of employment, salary and other details as appropriate. 

Be honest.Companies frequently find inaccuracies when conducting background checks. The “un-truths” most likely to block a job offer are inaccurate dates of employment, false claims of degrees, and inflated past salaries, according to a 2010 Society of HR Management poll. 

Check your own references. If you have concerns about what might be said during the reference checking process, you can hire a background checking firm to find out for you. Before you sign-up, be sure to understand what information you will receive for the fee. I haven’t recommended this service to people in the past, but there might be certain situations that call for it. 

I hope it goes well and you get the job offer. Let us know! 

Your Neighbor and Career Coach,

Christy Suerth