When Employers Utilize Employee Background Checks

Employers have no shortage of prospective employees in this economy.  In order to determine the best candidates, it is not uncommon for employers to run background checks.   Employeescreen.com reported that there may be some debate over the impact of these checks:  “it’s argued by employers that conducting criminal background checks assists in ultimately ensuring a safer work environment for everyone, reducing negligent hiring and criminal activity in the workplace. From the EEOC’s perspective the increase in criminal background checks for employment could cause discrimination in the hiring process.”

Background checks are in the news right now due to The Supreme Court Case of Vance v. Ball State University.

According to the EEOC, the following shows the likelihood of a job candidate to receive a background check:

  • 91% of financial jobs (banking, etc.) with fiduciary responsibility
  • 46% of senior executive positions
  • 34% of positions that require accessing confidential information (medical, salary, etc.)
  • 30% of positions where there is access to property
  • 11% of positions where state law requires it (day care, medical practitioner)
  • 9% of positions with security responsibilities (security guards)
  • 8% of positions involving national defense
  • 5% of positions that involve safety (transportation operation)
  • 3% of positions that involve contact with children and elderly

When Michael Eastman, (Executive Director of the Labor Law Policy with the U.S. Chamber of Commerce) was asked about when credit checks were performed, he explained, “Different components of applicant background checks occur at different stages in the hiring process. Some employers may check references before an initial interview, some may do so afterward but before creating a final list of candidates. However, as I understand, most employers do not request credit history until the last stage of the hiring process. In other words, employers are not using credit history to compare the credit worthiness of several possible applicants. Instead, they are requesting credit history and potentially other information, on individuals that they are otherwise prepared to hire.”

For more information check out Michael Eastman’s Statement that includes the following issues regarding background checks:

  • Frequency in Use
  • Credit Scores and Information Utilized
  • Dialogue with Applicants
  • Can Credit History Ever be Job Related

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