Does Sarbanes-Oxley require background checks? 03-01-2006

Our employer recently decided to ask current employees to submit to background checks in the name of Sarbanes-Oxley compliance. If the employer did not perform a background check during hiring or secure an authorization during the hiring process does the employer have the right to make it a condition of continued employment to submit to a background check. Are there any limits? For example, credit history, driving records. This company is located in California.

Rita Risser replies:

First off, Sarbanes-Oxley does not require background checks of employees. However, employers in California can do background checks at any time, and employers can make signing the authorizations a condition of continued employment. California privacy laws require that any background checking be job related. Thus, if the person does not have access to money or valuables, a credit check could not be done, and if the employee does not drive in connection with work, a driving record check is not allowed.

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