There are several types of records that should be checked by employers when screening prospective employees.  A thorough check of appropriate employee records is imperative to ensure that your company is hiring the best qualified individual for the job.  Record checks are also a safeguard against liability and negligent hiring lawsuits.

• A thorough record check should include any or all of the following types of records if the information contained bears on the position being filled. 

                                           Education Record

• Job seekers frequently misrepresent educational credentials on resumes and job applications because they know that many employers never verify them.  And although it may seem farfetched that a job applicant would blatantly claim education they do not have, it’s important to check educational credentials to make sure the applicant does indeed have the qualifications and background you need.

          Common educational misrepresentations include     

• - Claiming to have a degree the applicant does not have.
• - Claiming to have graduated from a particular school when perhaps they only  attended there for a period of time.
• - Claiming to have a degree in a particular field when in reality the degree is in another field entirely.

                                      Credit Reports

• Running a credit check on an employee is a good idea if an employee will be handling large sums of money or exercising financial discretion as your employee.  On the other hand, if you are unconcerned with an employee stealing money or expensive equipment, a credit check is probably not necessary.  Running a credit check comes with a laundry list of federal restrictions, so sometimes running a credit check is more trouble than it is worth. 
• However, a lot of information can be found by checking an applicant’s credit report,  including:
• - home address, social security number, bankruptcies, tax liens, judgments, child support obligations, loans, names of other employers who have checked the applicant’s credit record.
• What you will not learn through checking a credit report is:
• - previous income, college background, bank account information, personal investments, criminal or medical history.
• Before running a credit check on a prospective employee, there a number of  considerations to take into account.
• - Running a credit check will cost anywhere from twenty-five to fifty dollars for one report.
• - Federal legislation governs the use and disclosure of credit information, and must be strictly adhered to.
• - State laws may apply.  A number of states require employers to provide notice and/or copies of credit checks any time they are used for employment-related decision making.
• - Employers can be held in violation of antidiscrimination laws if they cannot show a business reason for the check and/or if screening on the basis of credit checking shows a disproportionate impact on minority applicants.

                                   Driving Records

Driving records should be checked whenever a position requires any driving of a vehicle on company business.  Running a driving record check only nets information on an individual’s driving and violations history, but also verifies the applicant’s identity.

To access driving records, contact the state’s Department of Motor Vehicles (DMV).  State DMV records generally include:

- all traffic violations, driving-related offenses, and identifying information contained on the license.

Information you, as requestor need to provide to the DMV includes:

- applicant’s full name and date of birth, address, and driver’s license number.

The DMV may charge a fee for the information.  The cost of a driving records check through the DMV is anywhere from two to ten dollars or more.  You may also need to complete a DMV form for the request; before sending a DMV request, contact your state DMV to find out what information and fees they require.

Uses of driving record information by employers differ depending on the employer’s situation.  It may not matter to you if an applicant has had a speeding ticket, but a driving record can also reveal other, more serious offenses.  For instance, an applicant with a suspended or expired license cannot legally perform a job that requires driving; in the event that employee is involved in an accident, you may be held liable if your did not verify their legal driving status.

                                 Criminal Records

Your business must protect itself from liability for every applicant who will:

- be bonded due to access to money or valuables, carry a weapon, drive company vehicles, have access to drugs or explosives, have access to master keys, have significant contact with the public, patients, or children, or fill a position which requires an employee criminal records check under state law.

As you might expect, checking an applicant’s criminal background can be a sensitive issue.  Legal restrictions under federal, and often state, law applies.  In general, checking conviction records is permitted;  checking arrest records is not generally permitted, but may be  permitted under special circumstances.

To learn more about when denial of employment based on a criminal records check is legal, read our case study.  The case study illustrates the reasoning courts may follow when evaluating whether a denial of employment based on a criminal records check was properly made.

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Record checking and verification is an important step in employee hiring.  Record checks provide a number of safeguards to you as employer: you can verify that a person is who they say they are, that their qualifications are what they claim them to be, and that the person you are hiring is trustworthy and unlikely to commit a crime against or during employment with your company.
Thorough records checking is not only in your best interest, it is your responsibility to your customers, the public, and other employees.  Negligent hiring practices can result in harm to others for which your business can be held responsible.  What records you feel obligated to check will depend upon your business and the position into which you will be hiring, but nevertheless, checking a number of references and background information is crucial to the success of your hire, and in turn, your business.