1. Employee Background Investigation March, 9 th MGMT 4020: Sloan Anderson Sloan Anderson Jennifer Gelber Jennifer Gelber Allison McMahon Allison McMahon Kathryn Anderson Kathryn Anderson Andrew Van Dellen Andrew Van Dellen

2. Background Check Overview An Employer’s method of obtaining information about applicant’s criminal, fiscal and social past. An Employer’s method of obtaining information about applicant’s criminal, fiscal and social past. Can be conducted by the company or by third party Can be conducted by the company or by third party Often include classified information Often include classified information

3. Included in Background Checks: Driving Records Driving Records Bankruptcy Bankruptcy Property Ownership Property Ownership Past Employers Past Employers Education Records Education Records Personal References Personal References Court Records Court Records Sex Offender List Sex Offender List

4. Reasons for Conducting a Background Check: Avoiding Negligent Hiring Avoiding Negligent Hiring False or Inflated Qualifications False or Inflated Qualifications Federal and State Law Requirements Federal and State Law Requirements Every piece of information in finding the right employee should be utilized Every piece of information in finding the right employee should be utilized You only want the best employees working for you company You only want the best employees working for you company

5. Risks and Suggestions Major risk of Improperly conducted background check: Major risk of Improperly conducted background check: Leak of confidential information Leak of confidential information Illegally obtained data Illegally obtained data Defamation of character: Defamation of character: Slander: Spoken defamation Slander: Spoken defamation Libel: Written defamation Libel: Written defamation Employee Waiver and permission Employee Waiver and permission Professional assitance Professional assitance

6. Not Included in Background Checks: Criminal Records Criminal Records Medical History Medical History Workers Compensation information Workers Compensation information Arrest information Arrest information Major Exception: Jobs involving public safety Major Exception: Jobs involving public safety Policeman Policeman Childcare Childcare Government positions Government positions

7. Methods to Conduct a Background Check: Commercial Internet Sites: Commercial Internet Sites: www.sentrylink.com www.sentrylink.com www.sentrylink.com www.abika.com www.abika.com www.abika.com www.easybackgroundchecks.com www.easybackgroundchecks.com www.easybackgroundchecks.com Advantage Background Check Systems Advantage Background Check Systems Dura-N-Company Enterprises Dura-N-Company Enterprises Arvada Colorado Arvada Colorado Old fashioned Old fashioned

8. Employee Perspective Pro’s Pro’s Safe Environment Safe Environment Trust Relationship with Employer Trust Relationship with Employer Added Qualification Added Qualification Con’s Con’s Privacy is a Grey Area Privacy is a Grey Area Trust Factor – could be abused Trust Factor – could be abused Small Mistakes Prove Harmful Small Mistakes Prove Harmful

9. Employer Perspective Pro’s Pro’s Avoid “Negligent Hiring” Avoid “Negligent Hiring” Validate Qualifications Validate Qualifications Drug Free Employees Drug Free Employees Safe Workplace Safe Workplace Con’s Con’s Cost Cost Deter Potential Employees Deter Potential Employees Who Defines Grey Area Who Defines Grey Area Prolongs Hiring Process Prolongs Hiring Process

10. Discussion Questions What types of questions do you feel would constitute defamation of character? What types of questions do you feel would constitute defamation of character? Who sets the boundaries about what should be held private? Who sets the boundaries about what should be held private? Does anyone have personal experience or know of anyone who has a problem with background checks? Does anyone have personal experience or know of anyone who has a problem with background checks? Are there any alternatives? Are there any alternatives?