Background checks can be filled with errors because of incomplete databases.

Darlene T. Martinez was grateful to be offered a housekeeping job at a local hospital soon after the Progressive Group of Insurance Cos. closed part of a call center where she had worked. This was in early 2011, in a much weaker economy.

Although the position would mean a cut in pay, it was steady work. Besides, the benefits were great, she said.

"The idea of getting a job right away was thrilling," she said.

STORY: Lower-level workers fired because of checks

All that was left was a criminal background check, a now-standard step in the hiring process.

Martinez, 57, doesn't have a criminal record, so she didn't have any reason to worry.

But she believes a faulty background check cost her the job.

Somehow, Darlene T. Martinez was confused with Darlene Foster Ramirez, who was found guilty in 2009 of dangerous-drug possession in Navajo County. The hospital rescinded the job offer, and Martinez was left scrambling to remove another person's felony from her record and find a new job.

The case highlights questions about the accuracy of background checks, which legal experts say can be filled with errors because of incomplete databases and confused identities. These errors can be difficult to fix, costing applicants job opportunities and disrupting livelihoods.

Martinez filed a lawsuit in U.S. District Court this fall against the Phoenix-based company that did the search, Universal Background Screening, alleging that it failed to notify her about the damaging report and that it didn't follow the necessary procedures to ensure accuracy. In addition to different last names, Martinez and Ramirez also have different birthdays.

"The only thing that was the same is her first name," said lawyer Paul B. Mengedoth, who is representing Martinez.

A recent survey by the Society for Human Resource Management indicated that about two-thirds of employers conduct criminal background checks on all job candidates. An array of companies, which don't have to be licensed, offer the service. Searches, though, vary in accuracy. An April report published by the National Consumer Law Center found that many databases are incomplete or include outdated case information.

"It happens a lot," said Zachary Kramer, who teaches employment law at Arizona State University. "The information they have is either not fresh or incomplete."

This summer, the Federal Trade Commission penalized California-based HireRight, one of the largest firms in the background-screening field, fining the company $2.6 million for failing to use "reasonable procedures to assure the maximum possible accuracy."

"A background check is supported by data," Kramer said. "And when the data isn't right, it's an incredible hassle for everyone to try to correct the data."

Kramer said common names are often confused. Although he wouldn't comment on Martinez's case, he said lawsuits such as hers "can encourage these background-check companies to do a better job."
http://www.usatoday.com/story/money/business/2012/11/20/background-screening-gone-wrong/1716439/