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Skipping pre-employment background checks can have negative impact

Sep 12, 2012 Quinn Thomas

Deciding to not conduct background checks on candidates can increase the risk of fraud and theft for businesses, especially if applicants have criminal histories that they did not disclose. Companies such as short term lenders and other organizations can protect their operations from financial danger if screening policies are implemented. According to The Associated Press, several tour guides in New Orleans, Louisiana, have filed a lawsuit and are asking a federal judge to forbid the city from requiring guides to undergo background checks in order to renew their licenses. The four individuals who are suing New Orleans claim that the regulations violate their rights to free speech. On the other hand, an attorney for the city argues that the policies are in place to protect the public as well as decrease the risk of fraud for tourism businesses. Tour guides must undergo screenings every two years along with new drug tests to renew their licenses. A federal judge has heard both sides of the argument but has not made a ruling as of yet, reports the news source. Companies can use pre-employment screening tools, such as the product offered by Microbilt, to determine whether candidates have any past criminal activity which might compromise the business or its current employees.