This is important. When you are making hiring decisions, Conduct background checks. If an employee breaks the law while performing his or her duties for your company, you may be held liable. Conducting a background check can help determine if an applicant has a criminal history, and can help insulate you against possible lawsuits.You might need a bit more information than your applicants provide. After all, some folks give false or incomplete information in employment applications. And workers probably don't want you to know certain facts about their past that might disqualify them from getting a job. Generally, it's good policy to do a little checking before you make a job offer.