Background Check

Background check is conducted for a myriad of reasons.  Companies, for instance, conduct them routinely to check on potential employees or current employees to see if they are fit for the position and do not have existing criminal record.  Background check do not exactly affect the employees’ performance but these will assure the employer that the persons they are hiring are dependable enough.  In some cases, the background check could relate directly to the person’s position. For instance, a tax consultant who is in debt and on the verge of bankruptcy is definitely a poor choice.  You could also request for a background check to investigate your new kid’s nanny or coach.  Also, it could also be necessary if you want to get to know the past dealings of your business partner. These could be probable reasons.

If you intend to carry out background check, you need to observe some laws and guidelines.  You should ascertain that the facts obtained are correct since these are dealing with someone’s livelihood.  Fair Credit Reporting Act defines background check as consumer report.  Before an employer can secure a consumer report they must inform you in writing and get a written authorization. Even if the employer is only conducting inquiries and not background check, they still need your consent. 

One of the set of laws that you should observe is the FCRA or The Fair Credit Reporting Act.  The FCRA pertains to a set of standards that was developed by the federal government to make sure that accurate and pertinent information is used when credit decisions based on reports are made. 

Another set of laws that you should consider is the DPPA or the Drivers Privacy Protection Act.  The DPPA is a federal law that controls the way information from DMV records are released and shared.  The DPPA also regulates the way the recipient of DMV records can share information obtained with another person.

Another set of federal regulations is the Gramm-Leach-Bliley Act. This act applies to employment screening.  GLBA was developed to keep information maintained by financial institutions private.  The information that a potential employer may obtained from background check are also regulated by GLBA.  You should also adhere to state laws and guidelines when conducting background check.