A few years back, two armed robbers were caught ransacking an upscale California home and they wound up shooting the owner. The thieves hadn't expected anyone to be there.
     That's because they knew a lot about that house and its security. The pair had spent hours in the home, as carpet cleaners for a service that caters to wealthy homeowners.
     The cleaner-robbers had a clever scam. Most affluent owners don't hang around when house cleaners arrive. So, typically, one guy worked while the other roamed, casing the contents, alarm systems, doors and windows. Then they left, only to return several months later to rob the place. Victims never made the connection to the carpet service - until the shooting. When the robbers were found, the homeowner sued the service. It turned out that the men had criminal records and felony convictions before they were hired. The company was found guilty of "negligent hire." Its owners had to pay $11 million in damages.
     When you tally the dollars and time it takes to recruit, interview, hire and train an employee, it doesn't make sense to cheap out on verifying background details. That may be especially  important for smaller businesses  where staffers often have multiple responsibilities. Even tiny employee lies can hurt your firm's reputation and bank account. And one bad hire can do enormous damage.
     Today, it costs roughly $70 for a professional pre-employment screening. Such searches ran $200 a few years ago. Prices are dropping as technology takes over.
     Most third-party background checks are now completed in three to five days via expert searches of computerized public records and personal databases. When red flags are raised, investigators follow up the old-fashioned way, by phone and wearing out shoe leather.
     There also are web sites that offer access to public and commercial records. So you can gather background information for yourself.
     This, of course, falls into the category of being careful about getting something for nothing. Such sites aren't necessarily trustworthy. You might end up with incorrect information and/or legal liability.
     Lately, the efficient price and worries about safety brought on by Sept. 11 have led to more frequent employee screening in Fortune 500 and other large corporations. By contrast, midsize and small firms are still reluctant to spend resources on screening. Yet hundreds of job seekers fudge facts or outright lie about their skills, experience or education. That goes for seemingly inconsequential details and for VIP candidates, too.
     The need to investigate potential hires seems obvious for certain positions, such as security and law enforcement, healthcare and child care.
     More broadly, you should consider screening any potential employees who will interact with the public, work in customers' homes or offices, or handle financial or other sensitive information.
     State and federal laws police the kinds of information employers can use when making employment decisions. Most states follow federal guidelines, but there are variations, with California being the most complicated and New York a close second. Check your state's requirements before proceeding. 
     "When doing background checks, employers are between a rock and a hard place," says Steven Ludwig, partner at Fox , Rothschild's Labor & Employment Department in Philadelphia. "If they do too little, they can be sued. If they do too much, they may be violating federal and state law by making prohibitive inquiries."                                                                                   ***continued on back.