By Mark Lema, MHRM, SHRM-SCP, SPHR

In today’s job market, many applicants exaggerate or even lie about their history. That’s risky for employers. A resume alone can hide criminal issues, fake credentials, or employment gaps. Doing background checks has become a must, not a luxury. Yet employers must balance the benefits with legal requirements and fair hiring practices.

Why background checks matter

Failing to screen employees can expose your business to negligent hiring lawsuits, theft, fraud, workplace safety problems, or reputational harm. In safety-sensitive industries—healthcare, childcare, finance, transportation—hidden risks can be devastating. Even in less regulated sectors, one “bad hire” can cost thousands in turnover, retraining, or damages. Studies show the cost of replacing a poor hire can equal 20–40% of that employee’s first-year salary.

How common are checks?

Background screening is now the norm. About 92–95% of U.S. employers run some form of criminal background check. Roughly 84% request national searches and 89% use state or county checks. Yet despite these numbers, checks are often less thorough—or skipped entirely—in many blue-collar roles, where hiring is fast, margins are thin, and HR resources are limited.

Costs vs. savings

The good news is that checks are affordable. A basic package (criminal, sex offender registry, watchlist, identity trace) typically costs $25–$35 per applicant. More detailed packages (employment or education verification, driving records) may cost $50–$100. Compare that with the $10,000–$20,000 estimated cost of a bad hire, and the return on investment is clear. Avoiding just one mistake can save many times the cost of checking all candidates.

For blue-collar employers who hire quickly or in volume, checks may feel like an unnecessary delay or expense. But skipping them creates risk. Workers often handle equipment, enter client properties, or operate vehicles—where safety, theft, and liability issues are real. Even limited checks can reduce those risks significantly.

Legal precautions for employers

Background checks are legal, but there are rules:

• Fair Credit Reporting Act (FCRA): If using a third-party agency, you must get written consent, disclose how the information may be used, and provide a copy of the report plus “Summary of Rights” before taking adverse action.
• EEOC Guidance: Apply checks fairly. Don’t target specific groups, and consider relevance, time passed, and job duties when evaluating criminal records.
• Ban-the-Box Laws: Many states/cities restrict asking about convictions until after a conditional job offer.
• State restrictions: Some states limit how far back you can check or prohibit use of sealed/expunged records.

Consistent policies, documented consent, and individualized assessment help you stay compliant and avoid discrimination claims.

Real-world lessons

Recent headlines highlight the risk of skipping checks:

• In Iowa, a superintendent falsely claimed a doctoral degree; the board hired him anyway.
• In Maryland, a school district uncovered employees with disqualifying histories after clearing a backlog of missed checks.
• In Illinois, lawmakers now require full disclosure of police recruits’ pasts after misconduct cases.

Bottom line

Background checks are not just red tape. For a modest investment, they protect your workplace, reassure clients, and prevent expensive mistakes. Whether hiring for an office or a construction site, employers who check gain peace of mind and a safer, more reliable workforce.

About LAAHR

This is no legal advice. LAAHR helps small businesses thrive by offering complete HR outsourcing solutions, including compliance, risk management, employee relations, and professional background check services to safeguard hiring decisions affordably and effectively.