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?

True Confessions: Problem with Employment Background Checks

When filling out a job application, you must include all jobs (short- and long-term), especially if the company conducts employment background checks. Although omitting a job is not the same as lying, on an application it's considered not telling the whole truth. Here's how one job seeker corrected his mistake of omitting a job on his application, which saved the day. Continue reading...

Fired for Lying on Resume

Question
I got fired from a job. To get my next job, I lied on my resume. It worked and I got hired. Everything was great -- I even got a promotion. A week after starting my new role, I was terminated for lying on my resume.

Now that I am again looking for a new job, how do I explained this in the job interview? Also, when I update my resume, should I put the phone number for the companies that I used to work for?
-- Carlos

Answer
Carlos, you need to sit yourself down and look at the pattern of lying and getting fired in your work history. You need to stop this self-destructive behavior before your work history is so checkered that no one will hire you.

Legally your last employer had every right to terminate your employment based on a lie on your resume, which was an official document in your personnel file. That lesson learned (the hard way, I'm afraid), what are you going to do now?

I know it's embarrassing to get fired, and it's hard to write or talk about it, but the truth is a greater ally than a falsehood. So on your resume, make sure absolutely everything is honest. You can leave information off (like those telephone numbers of previous employers), but everything that you say on your resume must be truthful.

On your resume, you don't have to say why you left your previous jobs. However, on your job application you must answer the question if asked. So prepare for how you'll respond to that question, both on the job application and in the job interview. Here are some thoughts for talking about it in the interview:

"I made the mistake of not fully explaining such-and-such. That mistake cost me my last job and I'll never let that happen again. I assure you my work ethic is excellent and I'll do my utmost to fulfill your expectations here at ABC Company."

I wish you the best with your job hunt!

Your Resume is Not a Confessional

Why Not Lie on Your Resume?

Career development experts say about 70% of all resumes contain at least one lie. Those lies could be an unattained degree, a false job title, exaggerated dates to cover up unemployment, or something along those lines. If you're one of those fibbing 70%, think again before you send out your resume. Those lies could cause more damage to your career than you realize. Continue reading...

Susan Ireland's Top Resume Tips

Set aside at least three hours (that's an average length of time to complete a resume if all goes smoothly). Before you start, print out the following set of notes and tape it to your computer, on the wall next to your desk, or someplace where you'll see it throughout the process.

Continue reading...

Don't Lie on Your Resume

If you’re thinking of lying about a degree, job title, or anything like that on your resume, think again! Employers run verification checks, and one lie could totally disqualify you from the race.

And did you know that once you’re hired, a lie on your resume can be grounds for termination? ...uh huh. That’s right.

Let’s say your boss is looking at your resume during your promotion review. You could lose your job if he finds a lie on your resume.

Or, let’s say your employer’s looking for an excuse to fire you — she could dig your resume out of your personnel files, find a lie on it, and fire you that day.

Probably the biggest reason not to lie is that a lie on your resume can undermine your self-confidence during an interview. I know if I had a lie on my resume, I’d be nervous the whole time, just knowing that someone might ask me a question about it. And that anxiety alone would probably kill the interview.

In his blog post When resume inflation becomes bald-faced lying, Steven Silvers points out that some resume liars get caught when potential employers send applicants’ resumes to former employers for their opinions. Oops!

For a look into the mind of someone who jokingly says he's about to resort to lying on his resume, read Things that are getting old by JJRC.