Why You Can’t Just Ask Businesses for Employer Information

As part of a reputable business, you want to be sure you are protecting your company from the risk of unsubstantiated legal claims and lawsuits. Being associated with illegal or unscrupulous employee background check practices has the potential to devastate not only your company’s bottom line, but its reputation in the community, as well. In order to minimize these risks during the employment screening process, it’s important to follow the standard rule of retrieving only pertinent information via an employee background check.

One mistake many companies make is attempting to cut costs by directly contacting a candidate’s previous employer for information, rather than hiring an accredited employee background check company. Although this method can be easier and cheaper, the information retrieved this way can be viewed as irrelevant to the hiring decision, opening your firm up to a potential lawsuit. For example, a previous employer who gives information about the reason for terminating an employee can expose your company as well as his or hers to the risk of being accused of libel, slander or defamation

Another reason to use an employment screening firm instead of contacting former employers on your own is because employee background check companies follow the guidelines of the Fair Credit Reporting Act (FCRA). By adhering to these guidelines, these professionals protect your company from unsubstantiated. If a disgruntled individual decides to accuse your company of wrongdoing, your reputable employment screening firm can simply prove its compliance with the FCRA.

Hiring a reliable third party to conduct employee background checks not only ensures the job will be done expertly – it also offers you a measure of legal protection.

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