MVR Checks for Employers: A Key to Reducing Accidents and Liability

All small businesses across the country have at least one thing in common: they need to shrink their exposure to risk. If your organization’s business model involves any amount of driving, running a pre-employment driving record check is an essential component of a sound risk mitigation strategy.

While an employee driving record check is helpful in determining whether an applicant or employee can be trusted behind the wheel, an MVR check for employers should be used with care. 

Like many other forms of background checks, motor vehicle records checks come with a set of compliance considerations to keep in mind—topics we’ll cover in this blog post. Consider this your guide to the basics of MVR checks for employers. 

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What Are MVR Checks for Employers? 

MVR checks for employers can be a helpful way to reduce your business’ exposure to risk—whether in the form of lofty insurance claims, litigation, accidents or worse. 

An employee driving record check generally produces the following information about an individual: 

• Their driver’s license number, classification and expiration date 
• Their full legal name, birth date and certain physical information 
• The date of issuance of their license 
• License suspensions, revocations or restrictions 
• Traffic violations and crimes 
• Accident reports 
• Points against the individual’s license 

Typically, companies with a practice of running a current employee or pre-employment driving record check require certain employees to drive as an essential part of their job or allow employees to use a rental car for business travel. 

If your employees will be driving for any part of their work and/or they will be covered under your liability insurance, it could be a good idea to consider running an employee driving record check before allowing them to drive for company business. 

What Is Considered a Clean Driving Record for Employment?

A clean driving record is generally defined as one with no moving violations, accidents or points against the driver’s license. For employers, a clean record means the employee or applicant has demonstrated a history of safe driving, with no DUI/DWI convictions, major traffic offenses or multiple speeding tickets. 

It's a good practice to establish a clear definition of what constitutes a clean record in your driving policy, as this can vary depending on the position and your company’s risk tolerance.

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What Is Considered a Bad Driving Record for Employment?

A bad driving record typically includes multiple violations, accidents or incidents like DUIs or reckless driving. If an employee has accumulated points or faced license suspensions, it can raise concerns about their safety on the road. This could be problematic, especially for roles where driving is a key responsibility. 

Having a clear policy regarding acceptable driving records is crucial to mitigate risks. If someone's business is regulated by the DOT then employment driving record checks and standards are not just a good idea, but a requirement.

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MVR Check for Employers: What Does the Law Say? 

If you are like most small business owners and managers, you’ll obtain your MVR check for employers from a consumer reporting agency. It’s no surprise, then, that an MVR check for employers, like a criminal record check, is designated as a “consumer report,” and is regulated by the FCRA (the Fair Credit Reporting Act). 

Under the FCRA, your employees have certain rights, which you must understand and abide by. 

For example, you must notify employees and/or applicants in writing if you plan to run an employee or pre-employment driving record check. 

Then, you must receive the employee or applicant’s written authorization before obtaining the employee driving record check. While an employee may withhold authorization, you may (in most employment-at-will relationships) refuse to hire, promote or retain them in turn. 

Can You Fire Someone for Failing a Motor Vehicle Records Check? 

Typically, yes, you can fire someone or take other adverse actions against an employee or applicant based on an unsatisfactory driving record check for employment—so long as the employment relationship is at will. 

Often, employers will terminate an employee with unacceptable marks on their employee driving record check if driving is an essential function of the employee’s job. MVR checks may reveal that an applicant or employee has a history of dangerous driving, including multiple moving violations, dangerous accidents and even instances of impaired driving. 

If an employee has a history of dangerous driving and is permitted to get behind the wheel at work, the results of a negative MVR check could be fuel for the fire of a negligent retention claim if the employee causes an accident on the clock. 

It’s important to follow certain steps if you plan to take any adverse action based on the results of using an MVR check for employers. If an employee will be subject to any kind of adverse action because of what was found in the records check, you’ll need to follow certain procedures: 

• Understanding adverse action in MVR checks

  Keep in mind that the definition of “adverse action” is broad, and includes refusing to hire an applicant as well as firing, demoting, or otherwise rescinding or withholding any benefits of employment from an employee. When you take an adverse action, you must inform the employee or applicant if the adverse action is being taken because of negative MVR check results. 

• Providing a pre-adverse action disclosure

  Before taking the adverse action based on the MVR check results, you must provide a copy of the MVR report and a summary of the employee’s rights under the FCRA. This is called a “pre-adverse action disclosure.” 

• Employee rights to dispute MVR results

  You must provide the employee or applicant with the name, address and phone number of the consumer reporting agency where you received the MVR results. The employee or applicant has the right to challenge the report’s accuracy with the consumer reporting agency, and even has the right to receive a free copy of the report from the agency, as well. 

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When Can Employers Run an Employee or Pre-Employment Driving Record Check? 

If you have notified your current employees that you will obtain motor vehicle record checks and have received their written permission to do so, you are in the clear—in most instances—to run MVR checks. Companies may opt to run MVR checks on a periodic basis or even implement continuous monitoring. 

As opposed to current employees, running checks on applicants requires its own set of considerations. While you’ll still need to obtain written authorization to run an MVR check, you may not be able to obtain the check any time you please. Some states and localities have “ban the box laws,” which require you to wait to run certain checks, like criminal records and MVR checks, until a conditional offer of employment has been extended to the applicant in question. 

Driving Records Policy for Employees

In addition to conducting a pre-employment driving record check for potential employees, it's critical to have an internal policy that requires current employees to report any issues that may impact their ability to drive legally for company business. 

This could include incidents such as DUIs, license suspensions or restrictions. Including this in your employee handbook ensures transparency and keeps your organization compliant and protected. 

Regular checks or continuous monitoring of driving records can help businesses stay ahead of potential issues and reduce liability risks.

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Make Sure You’re Hiring (and Retaining) the Right People with Axcet  

It pays to be sure your employees care about safety as much as you do. Running a motor vehicle records check is one way to help align your team members with your organization’s mission. If you have questions about when, how, and why your small business should run motor vehicle records checks, the HR compliance and workplace safety experts at Axcet HR Solutions are here to help. 

Axcet is a full-service certified professional employer organization (PEO) that understands with a dedicated focus on HR compliance and risk management. Schedule a conversation today to find out how we can achieve your HR goals together.