Make Sure Your Employment References Don't Come Back to Haunt You

When was the last time you gave any thought to your employment references and how they might impact your ability to get a new job? What many job seekers don't consider is that employers have every reason to want to check your background before hiring you.

That means you need to make every effort to ensure that your employment references and other background information doesn't come back to haunt you. This includes understanding what information a potential new employer might find and knowing your rights.

The Federal Fair Credit Reporting Act

The purpose behind the federal Fair Credit Reporting Act (FCRA) is to protect the privacy of consumer report information and to guarantee that this information is accurate. In addition, it stops employers from conducting a credit background check without a job seeker's written approval to do so. However, there are additional protections you should know about as well.

When an employer uses an outside agency, called a "consumer reporting agency" under the FCRA, you must be notified in writing if a credit report is going to be requested. Once you give written approval and the check is complete, if you are not hired for the position, the employer must provide you with a pre-adverse action disclosure. The pre-adverse action disclosure consists of a copy of the credit report and the summary of your consumer rights under the FCRA. You then have the right to ensure the accuracy of the credit report and to request a reinvestigation where there is a dispute.

You should also know that under the FCRA, a background check may include interviews with people you know, like neighbors and friends, about your "character, general reputation, personal characteristics, or mode of living." This is called an investigative consumer report and requires a separate disclosure.

Using a Motor Vehicle Report in Hiring Decisions

If you are applying for a job where driving is part of your work routine, you will likely need to provide a motor vehicle report (MVR). A MVR provides information about your driving record and will reveal the last three to seven years (depending on state) of your driving history including citations, license suspensions, failures to appear in court, arrest warrants, and drug and alcohol related driving offenses.

If you are unsure what your driving record will reveal, you may want to obtain your own MVR before applying for work that involves using a company vehicle. Just contact your state motor vehicle agency, fill out the paperwork and pay the fee.

Keep in mind that most employers will not require you to reveal a case that was expunged or dismissed, or that was a minor traffic violation. This does not include a DUI (driving under the influence). A DUI is not a misdemeanor and must be revealed.

Knowing How Far a Criminal Background Check Can Go

While the FCRA and the Equal Employment Opportunity Commission (EEOC) establish how employers can use criminal records, some states have laws that limit the use of arrest and conviction records. These can include anything from prohibiting questions about arrest records to restricting the employer's use of conviction data in making an employment decision. Be sure to find out your state laws.

Other Important Details You Need to Know about Background Checks

Three important details: first, know that under the FCRA (and some state's laws), employers are required to get your permission before obtaining records on education, military service and your medical background.

Second, one of the best ways to protect you is by being proactive. That means conducting your own background check. You can do this in two different ways. You can hire a company to conduct a background check for you. And you can ask to see a copy of your old personnel file. In some states (California for instance), you can access your file for one year from the last date of employment and make copies of documents in your file that have your signature on them.

Finally, check yourself out online. Do a search of your name (in quotes) in all the major search engines (Google, Bing, Yahoo) to find out if there is anything online wouldn't go over well with a new employer. If you find anything, check with the website about getting it removed.

Ensuring Quality References from Past Employers

One of the smartest things you can do is to stay on good terms with past employers. That means performing well and providing two-week's notice before terminating employment. And you can avoid embarrassment and the potential loss of a new job offer by being honest and following these steps.

First, stay in touch with the people you use as job references. This is good not only for references, but networking is important in finding future employment opportunities. Next, advise everyone you list as a reference whenever a potential new employer may call them. Finally, if you have a potential problem - you were fired -- be upfront about it. Then provide the name and number of a contact in the human resources department who can verify dates of employment and job title.

The whole reason employers conduct background checks is to ensure they are making a good hire. You can help make sure your employment references don't come back to haunt you by knowing the information that is out there in advance.