How an employee background check works

| Total Words: 447

Over the past few years pre-employment background checks have gained significance for employers big and small. Companies can either execute the required activities in-house or can outsource them to human resource companies that specialize in carrying out background checks.

There is a lot of paper-work, co-coordination, and follow-up that goes into conducting a background check and for this reasons companies prefer to get the job done by an outside agency. The background checks have to be done in accordance with the Fair Credit Reporting Act (FCRA). According to the FCRA, an individual who earns less than $ 75,000 per annum cannot be reported for criminal acts that are more than seven years old. Also, the checks can only be done with the signed consent of a job seeker.

Companies that wish to execute background checks should do so as a matter of policy and should make this known to job seekers. This acts as a deterrent for applicants who intend to hide information. if an external agency is hired to do the check then one should check if the agency is conversant with FCRA requirements, relevant state and federal laws, and the equal employment opportunity laws. The...

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