Pre-Employment Background Checks: Purpose, Types & Legal Rules

Introduction

Pre-employment screening, commonly known as background checks, gives employers the ability to recruit quality, talented employees while avoiding poor performers, theft, workplace violence, and potential lawsuits. In basic terms, pre-employment screening can be defined as an employer's investigation into a job applicant's background in order to confirm that the claims made by that applicant are accurate. In doing so, the employer may also examine the applicant's possible criminal history. According to a Society for Human Resource Management (SHRM) survey, "two-thirds (69%) of organizations reported that they conduct criminal background checks on all of their job candidates" (SHRM, 2013). Various reasons exist for conducting such screening.

Reasons for Conducting Pre-Employment Screening

To begin with, the nature and sensitivity of certain positions within an organization may require that the position holder be an individual of unquestionable integrity. As Berkowitz (2013) points out, some federal and state laws require employers to conduct pre-employment screening for specific job categories. Background checks can, among other things, help reveal whether an individual has been involved in past criminal activity. Similarly, background checks allow companies to verify that prospective employees possess the required training and expertise in relevant areas by confirming the information supplied in a job applicant's résumé.

It is also important to note that some employers incorporate pre-employment screening into the hiring process in order to reduce their liability for employee misconduct. According to Walsh (2006), employers can in some instances be held responsible for their employees' actions. As Walsh explains, "the common law doctrine of respondeat superior ('let the master answer') makes employers liable for harm to others that occurs when employees act within the scope of their employment" (Walsh, 2006). Employers who hire incompetent workers may therefore be held responsible for those employees' negligent actions — a risk that pre-employment screening helps mitigate.

Pre-employment screening can also enhance a company's overall performance by helping to identify potentially poor performers during the hiring process. According to the United States Department of Labor (DOL, 2013), a U.S. Postal Service study clearly indicated that workers whose pre-employment drug tests came back positive were more likely to be absent from work or dismissed than those whose tests came back negative.

Common Types of Pre-Employment Screenings

There are several pre-employment screenings employers can use to ensure they hire reliable employees. These include, but are not limited to, credit reports, criminal history screening, academic credentials checks, and driving record reviews.

Credit reports present selected financial information about an individual, including liens, credit standing, and amounts owed. Driving records can contain critical information regarding a job applicant's license status and traffic violations. An academic credentials check serves as a verification tool, confirming specific schools attended and degrees awarded. Criminal history screening provides information relating to a job applicant's past criminal convictions and involvement in activities of a criminal nature, such as drug trafficking.

Conclusion

The relevance of a specific screening exercise is largely dependent on the particulars of the job in question. For instance, information sourced from an individual's driving records is most useful when the job applicant is expected to operate company vehicles. It should also be noted that pre-employment screening works best alongside other hiring tools, such as job interviews. In the final analysis, background checks should be used reasonably and appropriately, tailored to the specific requirements of each position.