Labor & Employment Law

Caution When Conducting Background Checks

All too often when HR professionals are looking to conduct background checks on applicants, they first delve into the issue of price and then, maybe but not likely, delve into the issue of competence, integrity and accuracy.  An interesting post over at fellow Lexbloggers and friends at Bond Schoeneck & King's New York Employment Law Report demonstrates the concerns associated with complying with  both the Federal and the New York Fair Credit Reporting Acts.  Author, Kristin Smith,  who notwithstanding her youthful appearance in her corporate mug shot (young enough to be my daughter, perhaps) reveals the sad truth in this area: "state law contains more restrictive requirements. For that reason, it is a mistake to assume a background check vendor has all the technical requirements covered."

I cannot tell you how many times I have had a client question me about background investigations.  I look at the documentation and everything is written surreptitiously to protect the company doing the background investigation, not the employer.  With all vendors, HR professionals must be diligent in ensuring that their company's interests are protected, that the responsibilities for performance for engaged services are met and that areas of potential liability are not dumped upon the employer in the small print.  The CYA approach to doing background investigations puts employers at risk and it is important to fully and completely understand both the federal and state requirements that are imposed on employers.  Don't expect your vendor to educate you and assume any risk - and be responsible!

For a more comprehensive discussion of state and federal law requirements in this area, see Kristin's post here:  Avoid A Few Common Mistakes When Conducting Background Checks

For a detailed discussion on general employment law requirements imposed on New York Employers, see my latest book:  The Employer's Guide to New York Employment Laws

Full post as published by Strategic HR Lawyer on February 05, 2010 (boomark / email).