Employers Should Exercise Caution when Using Background Information in Making Employment Decisions

More and more frequently, employers are turning to outside agencies to conduct background checks regarding applicants' criminal, credit, driving, educational, and work histories. Such background checks can provide valuable insights into an applicant's history and confirm that the applicant has been truthful. Additionally, a background check may help protect an employer from a later claim of negligent hiring if the employee engages in wrongdoing. Finally, Federal and state laws require employers to conduct background checks for some specific positions. While the benefits of conducting background checks on applicants and employees may seem limitless, employers should be aware of their obligations under Federal and state laws, both for obtaining background information and using that information to make employment decisions.