Are Employee Background Checks Right for You?

• Posted on April 25, 2008
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Long Island CPA Firm Offering Tax and Financial Advice

In a world where 30% of applicants give false or misleading information about their backgrounds, adding employee background checks to the hiring process is the employer’s first line of defense in hiring good people, and possibly avoiding negligent hiring lawsuits.

Background checks supplement the interviewing process, confirm information provided by applicants, and uncover inaccurate information. Background checks do not rely on getting references from former employers who may be fearful of being sued.

Though the information from background checks varies, this information can identify some of the following problems:

• A given residential address that is commercial, including a bar, mail forwarding service, or homeless shelter
• A residential address that may have been used in suspected fraudulent activity
• Failure to appear for court appearance
• Differences between the legal name and the name on the application
• Variations in the legal name
• Criminal records located under an alias
• Applicant with multiple aliases, an incorrect Social Security number, or multiple numbers
• Use of Social Security number in a death benefit claim
• Use of Social Security number in fraud-related (credit card) activities
• Convictions:
  a. Assault/battery
  b. Forgery
  c. Theft
  d. Probation violation
  e. Possession of firearms/carrying concealed firearms
  f. Possession of a controlled substance
  g. Under the influence of a controlled substance
  h. Operating a motor vehicle on a suspended license
  i. Infliction of injury on spouse or child
  j. Burglary
  k. Credit card fraud
  l. Driving under the influence (multiple offender)
  m. Disorderly conduct
  n. Resisting arrest
  o. Indecent exposure
  p. Tampering with government records
  q. Grand theft auto

Background checks serve as an insurance policy and may identify potential issues that may not have been uncovered during the hiring process. If you are running a high-risk or turnover business, it might make sense to add background checks to your hiring procedures.