Intuit

As more companies utilize more thorough background checks to evaluate job applicants, the companies that do not conduct background checks are becoming more likely to attract higher percentages of people with adverse records.

"Adverse selection" in the hiring context refers to this phenomenon of companies (which do not background screen) attracting an applicant pool that generally has a higher percentage of criminal records or other potentially problematic issues in their background.

Ideally, the background check can help reveal whether or not a person told the truth (i) to questions on an employment application, including whether they have a criminal record, and (ii) in what they stated on their resume. Depending on the employer's preferences and objectives, the background check can be as basic as checking county criminal records, or as comprehensive as also checking Federal criminal records and motor vehicle records, verifying past employment and education, conducting reference checks, and drug testing.

In our experience, and on average, approximately 10% of the time a Felony or Misdemeanor criminal record will be reported on an applicant's background check report. (In some cases the employer may determine the record(s) warrant denying the applicant employment, while in other cases the employer may, e.g., determine the record(s) not to be sufficiently relevant to the position and thus not in themselves a basis for denying the applicant employment.)

With respect to non-criminal searches, the background check may, e.g., reveal discrepancies between actual and reported dates of employment, job titles, and educational degrees.

This depends on a variety of factors, not the least of which includes the goals and budget of the employer (e.g., search speed vs. breadth/depth, budget, etc.). Criminal record searches generally are at the foundation of an employment background check – due in substantial part to protect its workforce and prevent against negligent hire claims.

Searching the county courthouses in the areas where the person has lived is an industry best practice. In addition, various database searches can be conducted to identify additional jurisdictions in which it may be advisable to search the applicable courthouse, and Federal level criminal record searches also can be performed.

Beyond criminal records searches, additional screening options may include Motor Vehicle Records, Employment and Education Verification and drug testing.

The types of criminal records searches performed within a background check can vary significantly from employer to employer, even for Fortune 500 companies.

In our experience, we generally have found that Fortune 500 companies choose at minimum a screening package that searches county criminal courthouses, in the jurisdictions where a person has lived for the past 7 years, to find Felony and Misdemeanor records dating back up to 7 years.

A growing number of employers speak directly to their applicant and require that past W-2s and/or 1099 Forms be shown before an offer or after a contingent offer is made.

Aside from providing the employer with information helpful to making a competitive offer, this enables the employer to validate the accuracy of any salary information previously provided by the applicant.

We provide you with step-by-step instructions to assist you in complying with your employment background screening obligations under Federal law, including sample forms that you can use.

In addition, we have Federal notices for your reference, and a compliance certification in our contracts which details fundamental compliance obligations of employers.

We do not give legal advice, however, so we always recommend that you have legal counsel review your proposed screening process to consider and ensure that you are complying with Federal, State, Local and Foreign laws in your ordering and use of background reports.

The FCRA and certain state laws generally require the employer to make certain disclosures to the applicant to be checked, and to obtain the written or electronic consent of the person to be checked prior to conducting the check.

The FCRA also requires that the disclosures and consent be on a form separate from the job application. HireRight makes a sample applicant Disclosure & Consent form available to its clients.

HireRight Express's login page has the FCRA guidelines. In addition, HireRight provides a compliance checklist inside the login. You may also find a copy of the FCRA at:

HTTP://WWW.FTC.GOV/OS/STATUTES/031224FCRA.PDF

Generally yes, but not always. While the FCRA does not restrict this, certain state laws may do so. Hawaii, for example, generally requires that a contingent offer must be made before ordering a criminal records check.

Please consult your legal counsel to ensure compliance with applicable state laws. A survey by HireRight and HRTools.com of small business conducting background checks indicated that two-thirds of businesses ordered the check prior to extending an offer.

When using a 3rd party like HireRight or trying to contact the courthouse directly, there are usually 2 components of cost. The first is the time associated with researching court records.

The second is any cost levied by the courthouse, the state or any entity contracting with the courthouse in order to access the information. It has been estimated that about 1/3 of counties in America charge some fee or surcharge, with the highest single amount charged currently being by New York counties at $55/search.

An average order with county records will have about $2 per county added to it based on these surcharges, but in the case of HireRight no profit or mark-up is added to these government charges.

The industry uses the term "Turn Around Time" to describe how long a background check takes. The times vary significantly based on what searches are conducted in the check, the particular courthouse where records are being search, and various other factors.

3rd party providers often use this to their advantage in advertising by mentioning the word "instant". The truth is that many searches take minutes or hours and some take many days or even a week.

In our experience, the average criminal records search at a county courthouse takes approximately 2-3 business days, with it being longer for verification of employment and education.

By far the two most important pieces of information are a correct Date of Birth and correctly spelled First and Last Name. Next in priority is the Social Security Number. Although criminal records in America generally do not include SSN, this number often is used in 2 ways:

1. Often employers will hire HireRight to "validate" the number to ensure that the SSN is a valid number that was issued AFTER the person was born.
2. To identify past addresses of the applicant to initiate checks in the associated geographic counties where criminal activity was more likely to have occurred.