A recent poll showed 73 percent of all businesses and a surprising 92 percent of small businesses (those that have 10 employees or less) reported as either currently using or contemplating using background checks for new hires. This represents almost a 400% increase since the year 2000. In the period 2010-2012, 34 states have passed laws restricting the use of background checks in employment, rental, or finance decisions; in the year 2000, only 13 states had such laws (as they exist now).
Background checks such as these can be split into two broad categories: criminal (public) and personal (private) histories. Criminal histories include arrest and conviction records, records of drug, sex, and violent offenses, and federal crimes. Personal histories include credit history, employment history, school records, residence history, and driving records.
Note that many personal records in addition to criminal records are public and not private. The laws regarding what non-criminal records are public and thus open to scrutiny by anyone vary from state to state. For instance, a person’s credit history cannot be requested by a potential employer in several states, nor can a poor credit history be used as grounds for denying employment. Driving records, however, are public. Because each state is different, employers need to thoroughly familiarize themselves with the applicable laws.
The most important distinction between public-record and private-record background checks is that permission must be obtained for the latter from the person being examined. A further aspect of this distinction is that when said permission is obtained, the information must be kept strictly confidential. Many if not most people carefully guard their personal information and are wary of providing it to anyone unless absolutely necessary. There also could be lingering doubts on the part of a person who consents to background checks but is ultimately not hired; will the company maintain confidentiality and not distribute the information to anyone else?
Ordering Your First Employee Background Check 