Is it OK to run credit and background checks on a prospective employee?
Federal and State law place limits on pre-employment investigations. The general limits placed upon a pre-employment investigation are listed below: Financial / Credit Investigations In general, there must be a legitimate business reason to justify running a credit check. For example, if the credit history of the applicant were important to the job requirements, such as where the applicant would be responsible for managing or handling money transactions. Even if a financial / credit check is justified, federal and usually state law, place additional restrictions on the employer. Under the federal Fair Credit Reporting Act, an employer wishing to conduct a credit check must provide written notice to the employee. If the applicant is denied employment based upon the credit check, the employer must notify the applicant in writing and must inform the applicant how he or she can obtain a free copy of their credit report so they can dispute any inaccurate information. Polygraph Tests Private
