Sharing Background Check Information with Another Company: What You Need to Know

Sharing Background Check Information with Another Company: What You Need to Know

Background checks are a vital part of the hiring process for many companies. They ensure that potential hires are credible and have a clean record. However, what happens when one company needs to share the results of a background check with another company? What are the legal considerations, and what should companies be aware of when sharing background check information? In this article, we’ll discuss the basics of sharing background check information with another company and what you need to know to protect your company and employees.

Understanding the Legal Aspects of Sharing Background Check Information

Before sharing background check information with another company, it is essential to understand the legal aspects of doing so. In most cases, it is perfectly legal to share background check information with another company if certain conditions are met. However, some states have specific laws that regulate the sharing of background check information, so it is crucial to be aware of the laws in your state. Companies should also ensure that they have obtained the necessary permissions from the individual being screened before sharing any information.

What Information Can Be Shared?

When sharing background check information with another company, it is essential to be selective about the information that is shared. Employers should only share information that is relevant to the position the individual will be working in. For example, if the position requires driving, it would be appropriate to share information about the individual’s driving record. However, sharing personal information such as an individual’s medical history or financial information is prohibited.

Protecting Confidential Information

When sharing background check information with another company, it is essential to protect confidential information. Companies should ensure that the information being shared is transmitted securely and that the receiving company has the necessary safeguards in place to protect the information. Companies should also have a written agreement in place with the receiving company that outlines how the information will be handled, who will have access to it, and how it will be destroyed when it is no longer needed.

Case Studies

Here are some examples of how sharing background check information can be done correctly:

– Company A hires a new employee and requests a background check before the individual is officially hired. Company A shares the results of the background check with Company B, who is outsourcing some of their work to Company A. This sharing of information is legal because Company A has obtained permission from the employee, and it is relevant to the work that Company B is outsourcing.

– Company C hires a new employee and requests a background check. Company C shares the results of the background check with another company, but without checking the legal procedures and without the employee’s permission. This sharing of information is illegal and puts both companies at risk of legal action.

Conclusion

Sharing background check information with another company is a common and legal practice, provided that companies follow the necessary steps to protect confidential information and obtain necessary permissions. Companies should carefully consider what information they share and ensure that they have the necessary agreements in place with the receiving company. By taking the time to follow the proper legal procedures and best practices, companies can protect themselves and their employees from potential legal complications.