Small Business Training Center

When hiring for a position, do you perform a background check?  More than likely, you use consumer reports to check the background of a candidate.  Consumer reports can encompass many types of information such as criminal records, credit history, driving records, and employment history.  What happens when the results of a background check give you cause for concern?

In this time of high unemployment, the steps employers take to investigate candidates are being scrutinized more then ever.  I had previously written about the new “Ban the Box” law in Massachusetts, which prohibits employers from asking candidates about their criminal history on the initial written job application.  Pre-employment credit checks are also being scrutinized.  As of now, Hawaii, Washington, and Oregon have laws prohibiting the employer from performing a credit check on candidates, with limited exceptions.  Many more states are also introducing similar legislation.  The EEOC discourages employers from performing credit checks due to adverse impact on minorities and females, unless the candidate’s credit history is directly related to the particular job.  The recession brings this issue to light, as many people looking for work may also have a tarnished credit history due to falling upon hard times.  The EEOC held a public meeting last week to allow supporters from both sides of the issue to present their view.  See the EEOC press release.