Background Checks

Employment background checks are being conducted by employers more frequently than in the past. That's for several reasons. The increase in electronic data privacy requirements necessitates employers being more diligent when hiring workers who are accessing and managing personal data.
In addition, companies are concerned about negligent hiring lawsuits where employers can be held responsible for injuries caused by an employee, if they did not check the employee's background and suitability for the position.
Employers are also concerned about hiring responsible employees. Your credit history is important to employers because it an indication of how responsible you are. On a related note, while poor credit history may be considered when hiring, a decision not to hire cannot be based solely on whether you filed for bankruptcy.
Employment Background Check Law
If employers conduct a check of your background (credit, criminal, past employer) using a third party, the background check is covered by The Fair Credit Reporting Act (FCRA). The FCRA defines a background check as a consumer report. Before an employer can get a consumer report for employment purposes, they must notify you in writing and get your written consent.