Is It Legal? Background and Credit Score Checks for Job Application

It seems more employers are running background checks and getting credit scores of job candidates as part of the hiring process, these days. What do you need to know about when and how a hiring employer is getting this not-so-private information? And do you have any say in the matter?

Here's one job seeker's experience and some employment advice by a lawyer.

Question
I submitted a resume online for an entry-level tech support job for a wireless networking company, who then called me for an interview. The interview went well and I was offered a job contingent on a background check. I was never asked to fill out an "application", this was all based on my resume and interview alone. The thing is that I omitted a job from my resume because I was fired from the job and omitting it did not leave a gap in my employment. I am worried that this omitted job will show up on the background check and they will think that I was lying and rescind the job offer. Am I ok? I really need this job!

I'm not sure why they feel the need to do a background check. They also said they can get info from consumer reporting agencies. What does that mean?
--Uneasy-but-need-a-job

Answer
I have often advised people to leave off a bad job on their resume if it doesn't create a gap in employment (using just years, not months when listing dates). However, I tell people to include all jobs, even bad jobs, when filling out the job application.

Uneasy-but-need-a-job's case is unusual in that the employer is effectively using her resume as an application, which is something I've never run into. So I asked Jack Robbins, an attorney who practises employment law (along with other areas). Here's Jack's response:

Most large companies, and many small businesses, will conduct some sort of background check either prior to a job offer being made to the applicant, or done after employment begins. Under the law of most states, unless the employer is terminating a current employee for a discriminatory reason, an employer can terminate an employee who was determined to have lied in the application process. So an employee needs to weigh this risk in making a decision to not disclose a prior job, or omit any other information.

With our current tough job market, the temptation is understandable to omit any adverse information. A middle ground is Susan’s advice, that if you omit a job from your resume, then you should list it on the job application.

The background check might include a search for pending or older criminal/traffic cases and civil actions. It might also include getting credit scores. To obtain the reports using a credit service, the employer needs to first obtain a signed authorization from the job applicant. Generally, the applicant is entitled to a copy of the report. Some of the information may be incorrect or not current. Most reputable Human Resources Departments will ask the applicant for an explanation of any items in the report that are of concern.
Good luck.
Jack Robbins, Esq.

This posting is a general comment only, and not specific to your situation. Your situation might vary based on additional facts of your case.

Thank you, Jack. We appreciate your expert legal opinion.

Here are other posts on this topic:

True Confessions: Problem with Employment Background Checks
Why Not Lie on Your Resume?
Why do employers run credit checks on potential hires?

Five-Month Gap in Employment

Question
I worked at a company for 5 years, left for 5 months, and then returned to the same company. On my resume I have listed just years, thus leaving out the 5-month gap (because the gap happened within the same year). Continue reading...

Fudging on Job Application

Question
I have been offered a position through a letter and have taken the job. However, they have now sent me a job application -- a little backwards in my opinion. The issue is that between the last couple of jobs there were a few months of gaps that I did not show on my resume.

On the application I showed ending a job one month actually after ending it and starting the next job one month before I actually started it. In fact, I had been consulting off the books during those times and had gone back for some continuing education classes.

I did not tell my prospective employer about this and I was wondering if HR actually contacts the last two jobs, and if the time differences will make or break the deal. I have already been offered the position.

Answer
by Marc Effron, VP, Talent Management, Avon Products

There is both a practical and an ethical issue to your question but I assume you want to focus on the practical.

It’s likely the job application has a place for your signature where you swear that your statements are true and that the company can terminate you if anything you’ve stated on your application is false. You have a clear choice:

- You can list the same dates that you did on your resume and be ready with a really good excuse for lying when (not if) they verify your dates of employment.
Or
- You can list the correct dates and be ready to explain the gaps if they are questioned. Employers understand gaps in employment – lots of people have them. You have a chance to correct your original mistake by telling the truth on the form.

If your employer asks about the gaps, have a clear explanation for them and why you fudged on your application. And most important, apologize for doing that and acknowledge that it was the wrong choice to make and that it doesn’t reflect your values.

Hope that helps!

Marc Effron is Vice President, Talent Management for Avon Products. He has co-authored two books (including Leading the Way) and numerous articles about leadership. He is a frequent speaker at industry events.

Susan Ireland’s Two Cents
I agree with Marc on this. On a job application, you must list the months and years of your employment and you need to list them accurately. Lies on your resume or application can be grounds for termination at any point during your employment with that organization.

Hopefully your sincerity will shine through at the interview and your “slip of the pen” will be forgiven. In fact, I suggest you ask if you can fill out a new application with the accurate information so there will be no false statements in your personnel file once you are hired.

On the lighter side, take a look at Guy Kawasaki’s series of Top Lies by lots of professionals including CEOs, engineers, entrepreneurs, and marketers.

Job Lounger, do you have a question? Email (joblounge@aol.com) it to me and I’ll post your question and an expert’s answer here in The Job Lounge.