The Price is Right? Third Party Fees in Background Investigations

A background investigation often involves third party government fees that vary based on the jurisdiction, the type, and extent of the investigation.

These fees are imposed by government agencies, and other third parties, and cover the cost of accessing and retrieving specific information.

When conducting a background investigation, third party government fees come into play when accessing records such as criminal history, driving records, employment verification, credit history, or educational credentials.

For example, a Consumer Reporting Agency (CRA) may need to pay a fee to the appropriate law enforcement agency or court to obtain the necessary records for a criminal background check. Similarly, accessing driving records may require fees paid to the Department of Motor Vehicles.

Including third party government fees is important to address the pricing structure associated with background checks. Providing transparency and clarity regarding pricing fees sets certain CRAs apart from others that may not disclose the full price upfront.

By disclosing the complete pricing, CI ensures that prospects have a transparent view of the costs involved in their background investigations. 

Criminal Fees

The criminal portion of a background investigation usually requires third party government fees, which vary based on the jurisdiction and specific county involved.

These fees are imposed by county or state government agencies to cover the costs of accessing and retrieving criminal records at the local level. Federal criminal database searches do not normally include third party government fees.

The fees associated with criminal background investigations can differ from one county to another, depending on the administrative processes and resources required for record retrieval.

By understanding and taking these fees into account, you can more accurately budget for the comprehensive criminal history information they are obtaining.

Verification Fees

In addition to government related fees, non-government third party fees also play a significant role in a background investigation.

These fees are associated with specialized organizations such as The Work Number or the National Student Clearinghouse, to name a few, which provide services for verifying employment history and educational credentials.

The Work Number is a widely recognized organization as it offers employment and income verification.

When conducting a background investigation that involves employment history verification, a CRA may need to pay a fee to access The Work Number's extensive database of employment records.

For some employers, this can turn into an issue for some employers, as The Work Number has raised their fee to $120 per verification.

Similarly, the National Student Clearinghouse is an organization that verifies educational credentials. Education verifications often require confirming degrees, enrollment status, and graduation dates.

The National Student Clearinghouse acts as a central repository for academic records, and the fees associated with accessing the Clearinghouse's database varies depending on the institution from which the data is from.

New York State Specific

In addition to third party fees, it's important to mention that county courts in New York do not contain all misdemeanor information on a subject.

When a case starts as a felony in New York, but is pled down to a misdemeanor, the county court may close the case, but send the information to the local, town, or city court most applicable.

Misdemeanor charges are heard at the local and town court level, not county court.  If a felony case is seen in county court and pled down to a misdemeanor, the county court will likely still have the case if it was disposed of in that court.

Conducting background investigations on a county-by-county basis in New York can quickly become cost-prohibitive due to the sheer number of courts and the variability in fees.

With 62 counties, the cost of searching each county individually can add up significantly, and still won't gather all available information because misdemeanor cases are heard at the local and town court level, not the county court. 

To address this challenge, CI created Cursory Indicator New York™. Our proprietary New York State criminal history search is similar to the New York State Office of Court Administration’s (NYS OCA) state criminal search, in that it gathers data from the entire state.

However, unlike the $95.00 plus finance fee per name third-party fee the NYS OCA charges, Cursory Indicator New York™ can find adverse criminal history much more cost-effectively. It also has more records per jurisdiction. 

Navigating the landscape of background investigations requires careful consideration of third party fees.

By understanding and accounting for these fees, employers can ensure transparency in pricing and can budget accordingly for accurate and comprehensive background checks.

As organizations prioritize thorough screenings, the ability to navigate the complex fee structures associated with background investigations becomes crucial for efficiency, accuracy, and informed decision-making.