Pronunciation: /ˈbækˌɡraʊnd ʧɛk/
Part of Speech: Noun
Primary Definition of Background Check
A background check refers to the process by which an individual or organization (the requester) reviews the personal history and records of an individual (the subject) to confirm the information a subject has given and identify possible risks and behaviors that could be of concern in a particular situation like employment, tenancy or licensing.
Extended Explanation
A background check is a type of due diligence that is built from a range of public and proprietary sources. The checks can entail varying degrees of scope and depth. For instance, someone could be subject to a simple identity and criminal records check or a more exhaustive review which covers finances, employment, and digital history.
Common Types of Background Checks
- Criminal History Check: Examines local, state, national, and federal records for arrests and convictions. Also checks sex offender registries.
- Employment Verification: Checks former job titles and the duration of employment. Sometimes also asks for the reason for leaving.
- Education Verification: Confirms degrees, diplomas, and certificates claimed and also attendance of the claimed institutions.
- Credit History Check: Evaluates the individual’s financial responsibilities, payment history, debt, and credit score. (Highly regulated for employment purposes).
- Driving Record (MVR). Obtains a motor vehicle report to review traffic violations, accidents, and license status.
- Professional Reference Check: Contacts provided references to gain insight into the subject’s skills, character, and work ethic.
- Social Media & Online Presence Check: Reviews publicly available online profiles and content to assess character and behavior.
- Identity Verification: Confirms that the applicant is who they claim to be, using documents like Social Security numbers, passports, or national IDs.
- Civil Records Check: Reviews involvement in non-criminal legal proceedings, such as lawsuits, restraining orders, or bankruptcies.
Common Element of Background Checks
Common Elements to check for when carrying background checks Included:
- Full name and aliases
- Date of birth
- Social Security number
- Employment history
- Education history
- Criminal records (local, state, federal)
- Sex offender registry
- Credit history (if applicable)
- Motor vehicle records (if applicable)
Key Purposes and Rationale of Background Check
The primary objectives for performing background checks includes:
- Reducing the chance of loss: Safeguarding the organization, its staff, its customers, and its property against potential risk, theft, or fraud.
- Ensuring safety and security: Making certain areas safer, especially for those working with high-risk populations such as kids and the elderly, or for those with confidential information or security duties.
- Justifying credentials: Confirming a potential employee’s past experience, claimed education, and other relevant documents like licenses.
- Protecting the organization’s reputation: Hiring only those candidates for whom the employees will not aggravate the organization’s reputation.
- Regulatory Compliance: Ensuring legal and regulatory requirements for background checks in industries like finance, transportation, healthcare, etc. are legally fulfilled.
Legal and Ethical Considerations:
The background checks process is defined in such a way that it does not infringe on the legally entitled privacy of the individual, and prevents discriminatory actions.
- Fair Credit Reporting Act (FCRA): the U.S. primary federal law that decides how “consumer reports” or background checks can be used in employment, tenancy, and credit. It involves:
- Disclosure and authorization: The information must be given to the subject in writing as to a background check being completed and the subject must give the final say.
- The adverse-action process: The report must be provided to the subject when information in the report leads to a negative decision about that individual.
- Equal Employment Opportunity Commission (EEOC): Enforces federal laws that prohibit employers from using background checks in a way that causes a discriminatory impact based on race, national origin, color, sex, religion, disability, genetic information, or age (40 or older).
- Ban the Box Laws: State and local laws that restrict employers from asking about criminal history on initial job applications.
Related Terms
- Due Diligence: The comprehensive process of research and analysis undertaken before making a decision, of which a background check is a key part.
- Screening: A general term often used interchangeably with “background check.”
- Consumer Report: The legal term under the FCRA for a report on an individual’s character, reputation, and personal characteristics, which includes most standard background checks.
- Investigative Consumer Report: A more detailed report under the FCRA that involves personal interviews regarding a person’s character and lifestyle.
- Pre-Employment Screening: A specific type of background check conducted during the hiring process.
- Tenant Screening: A background check performed by a landlord on a prospective tenant.
Potential Red Flags in a Background Check:
- Discrepancies in employment or education history
- Criminal convictions relevant to the position
- Poor credit history (especially for financial roles)
- Negative references
- Misrepresentation of identity
How Long Does It Take?
Depending on the scope and jurisdiction, a background check may take anywhere from a few hours to several weeks. International checks typically take longer.
Common Misconceptions about Background Checks
Myth: A background check provides an infallible and complete picture of a person’s life.
Truth: It is a snapshot of a person based on whatever public records exist for that person, and records can be mismanaged, erased, and records can even be wrong. Moreover, not all records scanned for a background check are connected to each other and records can be outdated.
Myth: An employer sees all and every detail in a person’s record.
Truth: It depends on the state laws in that state. Many states don’t even allow reporting an arrest that didn’t lead to a conviction or a very old record of a minor conviction
Myth: A person with a criminal record can’t get a job.
Truth: A lot of employers do individual assessments where they will look at the offense, how long ago it was and how it relates to the job in question.
Even though the laws vary, in every state, public safety and the person’s record being investigated, background check is legally required.
Summary:
A background check is a systematic review of an individual’s personal, professional, and financial history. It is a critical risk management tool used across various sectors to verify information, ensure safety, and meet legal obligations, all while operating within a strict legal framework designed to protect the rights of the individual being investigated.
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