The Legal Risks of Employee Background Checks

Some people think that background checks aren’t necessary for their potential new hires, but that could not be further from the truth. It’s always good to know what you’re in for when it concerns having an employee on board that might harbor more liability than utility. 

No one wants to put their business and their interests out there if they feel that a particular employee could cause damage to their investments and reputation. Finding out things about an employee’s past could alter the future in more than one way, including fishing out those who might not actually be qualified for the position or those that are trying to scam others.

But the thing is, doing everything the right way is the best way to get down to the bottom of any problem found when doing a background check, as long as it’s done properly. No business wants to deal with criminal fines or lawsuits when they were just trying to protect what they paid for. 

Getting a third party who specializes in screening is the best solution, says IMI Data Search, Inc. When you understand the situation, that when the best results occur. These are the legal risks of employee background checks, and what businesses can do to reduce their liability.

Why Hiring a Professional For The Hiring Process Matters

False information is out there, especially on the internet. As well as incomplete records, not knowing for sure what’s on a person’s record is a massive hazard that has lawsuit written all over it, including getting in trouble for not going through the proper channels.

Making a decision that’s based off wrong information is something that any business should do; consider your reputation tarnished if this ends up occurring. With how things are now, information travels quickly through social media, which makes for another avenue of exposures that are also hazards. There’s also the fact that many databases remain unavailable to the public.

Treat Everyone Equally and Get Written Authorizations

Here’s some advice from Forbes Magazine: putting everything in writing makes a huge difference. It’s one way to protect your company when getting rid of an employee goes quickly south. Also, remember to treat everyone equally. If it’s against the law, don’t do it. 

During the staffing process, businesses are prone to lawsuits of discrimination or exclusion. If a background check is performed improperly or unlawfully, the staffing agency in charge of the process would be liable for the damages from the EPLI claim.


About World Wide Specialty Programs

For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (800) 245-9653 to speak with one of our representatives.