How Can Background Checks Vary By Industry?

November 2 2020
4 min read

To build an organization of top talent, you need to ensure your business's protection and employee and clients' safety. Background checks are essential to include as part of your screening program to help mitigate risk. Whether you are building a new background screening program or updating an existing one, employers should consider two important things:

  • The position/job duties you are hiring for.
  • The industry in which your business operates.

In our last post, we discussed why employers should consider the risk level associated with their open position when selecting background checks in our previous post.

Many industries, such as transportation, healthcare, and financial services, have special requirements on what background screen services must be run to remain compliant. This post will explore these industries further and provide an overview of the overview of the background screening services specific to them.

Background Checks for the Transportation Industry

Companies are held liable for employees when they drive for business purposes. It doesn't matter if they are driving a company vehicle or their own; it creates liability and puts your business at risk. Looking at the driving history of a candidate can help reduce risk and ensure they are qualified.

In some states, driving under the influence charges are not considered criminal records. A standard criminal record check won't always include these offenses. When an applicant's driving record plays into your final employment decision, the following check should be included in your background screening program:

Driving History Checks: provides validation of the driver's license number provided by your applicant and their driving history in the state of issuance.

By conducting a driving check, you can rest easy that your clients, equipment, operators, and anything else that comes with driving, are all in safe hands.

The Department of Transportation regulates any business that uses commercial drivers and requires employers to conduct DOT checks as part of the hiring process.

Learn more about our transportation background checks!


Background Checks for the Healthcare Industry

For healthcare companies, employees are their most significant asset and can also be their most significant liability. The medical field poses a risk for unprofessional and illegal activity, including drug abuse, patient abuse and neglect, and fraudulent employment.

Healthcare organizations ranging from large hospitals to small clinics require extensive background checks to ensure staff and patient safety. A thorough background check should include, at minimum, criminal background checks, license verifications, and healthcare-specific sanctions watch list such as:

Office of Inspector General (OIG) /General Services Administration (GSA) : identifies individuals who have committed fraud against Medicare, Medicaid, or other federally funded healthcare programs.

Fraud and Abuse Control Information System (FACIS®): identifies individuals with sanctions and adverse actions taken in the healthcare field.

In addition to pre-employment background screening, companies should considering ongoing monitoring of healthcare sanctions and watch lists. Learn more about ongoing monitoring here.

Background Checks for the Finance Industry

Those within the financial services handle critically sensitive data every single day. Suppose a candidate will access sensitive financial information, funds, and assets. In that case, it's essential to get an accurate picture of their financial history.

Performing background checks can be a deterrent against threats such as money laundering, embezzlement, and accounting fraud. Companies such as banks, credit unions, brokers, and insurance companies are also subject to strict background screening and regulatory requirements. They must have internal controls in place to meet them.

Employers should perform criminal background checks (county, state, national, and federal), verify employment, and/or education. And verify of any claimed professional licenses, including Certified Financial Planner (CFP) or Certified Public Accountant (CPA).

Credit reports are also a useful service that provides insight into an applicant's full credit history, including:

  • Civil judgments
  • Tax liens
  • Bankruptcies
  • Unpaid bills in collections
  • Recent credit inquiries
  • Payment history.

Credit checks must fully comply with all federal and state regulations. Some states also prohibit employers from using credit reports as part of the background screening process.

Learn more about our financial industry background checks.

How can the right background screening partner help?

The background checks you do ultimately depend on your organization's employment screening policy, federal and state regulations for your industry, and the position you are hiring for. If you have employees in regulated industries, it's vital to choose a background check company that can help you complete the proper services and keep you up to date on industry changes.

Orange Tree provides complete and customizable background checks for a range of positions and industries. We offer a full range of advanced screening services that include criminal records, verifications, drug testing, international screening.

With over 30 years of experience, our team at Orange Tree understands the legal and financial implications of employers' hiring practices. We are committed to working with employers to design and implement a comprehensive screening program that fits their business needs. Our team can assist you every step of the way to prevent negligent hiring lawsuits.

Want to learn more about how our team can be of service to your organization?

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