When it’s time to hire finance workers, digging up as much background information on job candidates as possible is an important step.

The Web can be a good source of info, but be careful. It’s not without problems

and risks that you’ll need to understand.

These days, it’s not uncommon for managers to scan the Internet to learn a lot about potential hires before they even come in for an interview. About 44% of employers use social networking sites to check out job candidate profiles and nearly 40% have looked up the profile of a current employee, according to a survey of about about 350 employers by New York-based Vault.com, a media company that focuses on careers.

But are these investigations legal?

The answer: Yes, but it could still cause plenty of problems for companies if it’s not handled the right way.

In one recent case, a worker was suspected of submitting false expense reports. He was fired after his boss did a Google search with his name and found out the employee had been fired from other jobs for similar shenanigans.

The worker sued, claiming the search was unfair. But the court disagreed, on the grounds that there’s no law prohibiting companies from searching the Web for info about employees or potential employees.

Simply put, the Internet is public and people should expect that anyone - including employers - will be able to see it. (Cite: Mullins v. Department of Commerce)

But be warned

There’s nothing on the books regarding using search engines or social networking profiles to influence hiring decisions. But some companies are avoiding it, for the same reasons they don’t watch video resumes or ask candidates to submit photos of themselves - there are just some things you don’t want to know until you have to.

Demographic information like race or national origin are the most obviously problematic pieces of data. But there are others. For example, some states prohibit discrimination based on sexual orientation. Others say employers can’t make decisions based on political activities, or activities people engage in privately in their homes. All of those might be revealed by a Web search.

“Failure to hire” lawsuits are more rare than other suits, but they still happen. And the easiest way to prove there was no discrimination is to be ignorant of any information that can be used to discriminate. But if unsuccessful candidates can show that someone at the company saw their pictures, then it becomes possible to claim that’s why they weren’t called in to interview.

Keeping it safe

There are some legitimate reasons for checking people out online. A Google search might reveal some positive press about things they’ve done. Also, you can find out about hobbies and activities that weren’t included in a resume. And finally, some less careful candidates might display information about illegal drug use and other disqualifying factors.

But how do you keep the good without the danger? The key is consistency. Companies should have written policies given to everyone involved in the hiring process. The policy should tell managers, recruiters, etc., that if they’re going to research one applicant, they must do the same for all of them. Also, it should remind them what information they can and can’t use to make a decision, and to document the reasons they decide to reject someone.

Finally, another way to avoid the problems that can occur from having “too much information” is to hold off on the searches until after the interview is scheduled. By then, companies will know most of the troublesome info anyway.

Tags: Facebook, hiring, Internet, search, social networking, Web