There are many companies that specialize in employment screening. It is outside the purpose of this fact sheet to identify background checking companies by name. The most important thing to keep in mind is that companies conducting background checks fall into several broad categories. This can range from individuals commonly known as "private investigators," to companies that do nothing but employment screening, and to online data brokers.

Most businesses deal with sensitive information at some level. This may range from handling social security numbers, credit card information, drivers license information and other types of personal information. In order to assure clients and customers that their information is being handled properly, it is the duty of the business owner to take the necessary step in getting a thorough background check on all employees. Personal and professional references are still a good method, however, they should not be relied upon solely. It should be obvious that prospective employees will give names of those who will give a good reference; background checks pick up where references stop – they will give you accurate and in-depth information regarding the candidate.

Background checks are available to cover a wide variety of areas. Drivers license, character references, personal acquaintances, education records, criminal records, court records, credit records and much more. It is also important to note that much of this is public information. In addition, employers should understand that according to the Fair Credit Reporting Act, some information cannot be used in conjunction with a background check. Bankruptcies after 10 years and many other types of consumer information that is older than 7 years may not be reported. Criminal background, credit reporting, worker’s compensation claims and character references are just a few among a long list of types of background checks that are widely available. Employers should know the laws in their specific state regarding what information is available for their specific needs.

Make sure you have a clear policy when it comes to background checks.

Having a clear policy will deter people that are undesirable from applying which can save you valuable time when it comes to screening new applicants. It also erases any confusion on why checks are performed and to inform your employees that they may be checked.

Lower your liability, create a background check policy.