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Depending on your state and what type of business you are in, employee background checks may or may not be mandated by law. In businesses that deal with children or seniors, Federal law requires background checks on all employees and/or volunteers. The reasons should be obvious: the Federal government wants to ensure that those served are safe from hard and employers need to safeguard themselves against negligent lawsuits.
If an employee will be doing any type of driving for the business, it is important to know their driving history. For insurance purposes, employers need to have up-to-date information regarding the
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With the recent corporate scandals of Enron and WorldCom, the
popularity and necessity of executive background checks has
greatly increased. In order to protect themselves from potential
disasters later on, many companies are now requiring extensive
investigation on prospective executives to verify their
employment and educational history as well as information
regarding any past wrongdoings.
As with any other type of pre-employment background
investigations, employers need to have the appropriate
disclosures available. According to Federal law and the Fair
Credit Reporting Act, applicants must sign and date specific
disclosures regarding the various types of background checks
employers desire. It is important to respect the privacy of
potential employees while maintaining the company's
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