Employers are entitled to run background checks on prospective new hires but they must adopt a policy that complies with federal and state laws. Job applicants may sue the employer if it is possible to prove discrimination if the pre-employment screening is biased based on equal opportunity laws. Therefore, it may be prudent to hire a background screening company that specializes in running background checks and is able to do so within the constraints of all applicable laws.

The business should consider the type of background check to determine if it is appropriate for the vacant position the company needs to fill. While it may be appropriate to check an applicant’s credit when the position involves financial responsibilities, an individual’s credit is hardly ever an indication of a potential hire’s ability to perform the job for which he or she is applying.

For any type of background check, the hiring employer needs to state the types of background checks required of any applicant and the employer needs to have each prospective employee sign a form that grants the company to do so. Notification that the company conducts pre-employment drug tests and background checks may discourage many people who know they would not pass these checkpoints from applying.

Employers must conduct and use background checks in a uniform manner. It is extremely important for an employer to use background checks as a basis for hiring with uniformity. In addition, the employer may consider discussing with applicants concerning the nature of any derogatory information found in applicable background screenings. In the event that the employer decides not to hire an applicant based on negative findings, they should carefully explain to the applicant why the company made the decision and why the negative information is undesirable to the company.

In conclusion, while it may seem like a good idea to run background checks on prospective employees, the employer needs to exercise caution concerning the way they conducts the checks and how it uses the information in their hiring decisions. If the applicant is in a protected class, he or she may decide to file a discrimination lawsuit against the employer in the event that the employer does not make or retracts a job offer. An employer may avoid litigation by retaining a professional background screening company. Firms that are below competitive rates that other established companies charge may indicate that they do not conduct background checks thoroughly and accurately or that they cut corners and skirt around state and federal laws.

Pre-employ.com encourages employers to review their background screening program carefully, through yearly analysis and can do so free here: http://www.pre-employ.com/quote