More and more companies are beginning to understand the importance of criminal background checks conducted on prospective employees to avoid law suits citing negligence. Criminal background checks, human resource experts say can considerably reduce the negligence and retention lawsuits slapped on employers every year. Criminal background checks are an essential part of the pre employment process as employers are obligated to protect their employees, customers and the general public from other employees with violent histories. Some large companies have human resource personnel conduct the criminal background checks as part of the pre employment screening process but smaller companies usually outsource this work to companies that specialize in conducting criminal background checks.

There are a few ways that companies can run criminal background checks on individuals. Companies can search through court records and national criminal database for any reference to the applicant's name. A criminal background check done this way would include the employer going through the criminal record manuals of the courts. Each state maintains the details of all the individuals having a criminal background in their respective courts.

Another way that companies often conduct criminal background checks is by running a social security trace. The social security trace authenticates the social security number provided by the applicant as well as the address history provided by the applicant. A criminal background check done through a social security trace helps employers pull up criminal records of individuals who may have two names. While criminal history background checks will check for the criminal history of an applicant by name, the social security trace brings up all pertinent information associated with the social security number. So if an applicant has any criminal history under an alias, the social security trace will bring that up as well. The criminal background check has become an inexpensive way for employers to legally obtaining details about a person. Employers also run background checks and credit history checks along with criminal background checks as part of the pre employment screening process. Depending on the industry, some companies are mandated by Federal and State agencies to do criminal record checks as well as background checks. Companies in the securities industry, casinos and insurance agencies routinely conduct criminal background checks for prospective employees.