Are you preparing to hire drivers for your company, or do you need to verify the driving records of current employees? If so, conducting a Motor Vehicle Record (MVR) check is crucial in your screening process. While it might seem simple, many employers make costly mistakes during MVR checks that can lead to serious consequences.
According to data from the National Safety Council, motor vehicle crashes cost employers $72.2 billion in 2019 alone. Even more concerning, according to a 2018 report by Motus, the average cost of a non-fatal car accident is $78,703, while a fatal accident averages $754,382. This data underscores the substantial financial impact of vehicle accidents on companies.
So, let’s understand how MVR checks work and what employers need to know to conduct them effectively.
What Are MVR Checks?
MVR checks are an integral part of pre-employment screening for positions that require driving responsibilities. These checks provide a detailed history of an individual’s driving record, including:
- Driver’s license number
- Full legal name
- License expiration date
- Date of birth
- Physical characteristics, including weight, gender, height, hair color, eye color, and photograph
- License issuance date
- License classification and type
- Record of traffic violations
- Documented accident reports
- History of traffic-related offenses
- License suspension details
- Accumulated driving record points
Employers use MVR checks to assess a candidate’s driving skills, identify potential risks, and ensure compliance with legal and insurance requirements.
The National Highway Traffic Safety Administration (NHTSA) reported that motor vehicle crashes cost American society $340 billion in 2019. This figure includes various expenses, including medical care, lost productivity, legal and court costs, emergency services, insurance administration, property damage, and workplace losses.
Why Are MVR Checks Important?
Here are the primary reasons why employers conduct MVR checks:
1. Safety
Employees who operate vehicles on behalf of your company directly impact public safety. A poor driving record can indicate potential risks, such as reckless behavior or a lack of responsibility behind the wheel. Drivers with a history of violations are significantly more likely to be involved in accidents, increasing the risk for employers.
2. Compliance
Many industries, such as transportation and logistics, are subject to regulations requiring thorough screening of drivers. For example, the Department of Transportation (DOT) mandates regular MVR checks for commercial drivers. The FMCSA found that many carriers failed compliance audits due to incomplete driver qualification files, including MVR checks.
3. Liability Reduction
Employers can be held liable for accidents caused by employees while driving company vehicles. An MVR check helps identify red flags and reduce the risk of negligent hiring claims. Negligent hiring lawsuits related to driving incidents have resulted in substantial settlements, emphasizing the importance of thorough background checks.
4. Insurance Requirements
Insurance providers often require MVR checks to assess the risk profile of your drivers. Hiring employees with clean driving records can help lower insurance premiums. A fleet with a history of driver violations can experience insurance rate increases, impacting the company’s operational costs.
How Do MVR Checks Work?
The MVR check process involves several key steps:
1. Candidate Authorization – Employers are legally required to obtain written consent from the candidate before initiating an MVR check. This requirement, mandated by the FCRA, ensures transparency and protects individuals’ privacy.
2. Information Collection – Employers must accurately collect the candidate’s full legal name, date of birth, and driver’s license number to conduct a reliable MVR check. Any discrepancies in the provided information may impact the accuracy of the report.
3. Record Retrieval – MVR reports are obtained through state Department of Motor Vehicles (DMV) agencies or authorized third-party background screening providers. The scope of available records varies by state; while some states maintain driving history for up to 10 years, others may only retain records for three years. When evaluating an individual’s driving history, employers should be aware of jurisdictional differences.
4. Results Evaluation and Compliance Considerations – Employers must assess the MVR results in accordance with company policies, industry-specific standards, and applicable regulatory requirements. Factors such as DUI convictions, excessive traffic violations, license suspensions, and accumulated driving record points may impact a candidate’s eligibility for driving-related roles. Additionally, companies in regulated industries (e.g., transportation, logistics, and commercial driving) must adhere to compliance standards set forth by the Department of Transportation (DOT) and other governing bodies.
Common Mistakes in MVR Checks and How to Avoid Them
While MVR checks are straightforward, employers often make avoidable mistakes that can lead to compliance issues or hiring risks. Here are the most common errors and tips to avoid them:
1. Failing to Obtain Proper Consent
Neglecting to secure written consent from the candidate before conducting an MVR check violates the FCRA (Fair Credit Reporting Act). This can result in legal penalties and damage your company’s reputation. FCRA violations have led to significant settlements, underscoring the importance of compliance.
A solution for this would be to consistently provide candidates with a clear and separate disclosure form explaining the purpose of the MVR check. Ensure you receive signed authorization before proceeding.
2. Not Checking License Validity Regularly
Relying solely on a one-time MVR check at the time of hire overlooks the possibility that licenses may be suspended or revoked during employment. A 2022 report by 24/7 Wall St. noted that in 36 states, unlicensed drivers or drivers operating a motor vehicle with a suspended, revoked, or expired license were involved in 7.3% of all fatal accidents.
To solve this, a policy for ongoing MVR checks for employees in driving roles must be implemented. Employees should schedule annual or biannual reviews to stay updated on any changes in their driving status.
3. Ignoring State-Specific Regulations
Each state has unique laws governing MVR checks, including the time records are maintained, privacy restrictions, and access protocols. Ignoring these variations can lead to non-compliance.
A 2023 article reports that 74% of employers conduct background checks on applicants’ driving records. Additionally, a 2024 article provides a comprehensive overview of Motor Vehicle Record (MVR) laws across different states in the U.S., highlighting the variations in regulations governing MVR access and use.
Stay informed about the specific requirements in the states where your business operates, and partner with a screening provider experienced in navigating multi-state compliance.
4. Overlooking Minor Infractions
Focusing only on major violations like DUIs or reckless driving can lead to a disregard for patterns of minor infractions, which could indicate a candidate’s habitual disregard for traffic laws.
Research from the National Highway Traffic Safety Administration (NHTSA) indicates that drivers with prior violations, such as speeding, are more likely to be involved in fatal crashes. For instance, in 2022, speeding was a contributing factor in 29% of all traffic fatalities, resulting in 12,151 deaths.
Evaluate the cumulative impact of minor violations, considering their frequency and severity when assessing a candidate’s driving record.
5. Neglecting to Follow Up on Red Flags
When MVR checks reveal discrepancies or concerning details, some employers fail to investigate further, leading to potential hiring risks.
Additionally, a 2021 report from HR Dive notes that 53% of HR professionals surveyed said they would be willing to hire individuals with criminal records, suggesting a willingness to overlook certain red flags.
Establish a transparent process for addressing red flags, and communicate with the candidate to verify or clarify discrepancies and document the outcomes of these discussions to solve this.
6. Ignoring Industry-Specific Standards
Driving record requirements vary significantly across industries. For example, transportation companies may require a spotless driving history, while other industries might accept minor infractions for non-driving-focused roles.
The FMCSA mandates that drivers in the commercial transportation industry maintain clean records, with violations resulting in a higher likelihood of regulatory audits.
Hence, define acceptable driving record criteria based on the standards and risks of your specific industry. Or, incorporate these criteria into your company’s written policies and ensure consistency in their application.
7. Overlooking the Adverse Action Process
Failing to properly notify candidates of adverse hiring decisions based on MVR checks can lead to legal consequences under the FCRA.
To resolve this, provide candidates with a pre-adverse action notice, a copy of the MVR report, and a summary of their rights before making a final hiring decision. Also, it allows candidates sufficient time to dispute inaccuracies or provide additional context.
MVR checks are essential for hiring for roles involving driving responsibilities. By understanding and addressing these common mistakes, employers can ensure compliance, minimize risks, and build a safer workforce. Incorporating regular checks, utilizing accurate data, and adhering to legal requirements protects your business and promotes transparency and trust in your hiring processes.
Keep Your Fleet and Team Protected with Verification Screening Solutions
With Verification Screening Solutions, you can avoid costly mistakes in your background checks. We provide a comprehensive range of services to ensure your hiring decisions are informed, accurate, and legally compliant.
As an FCRA-compliant provider, we adhere to all federal, state, and industry-specific regulations, ensuring that your background checks are conducted ethically and lawfully. Our services meet the standards set by the Fair Credit Reporting Act (FCRA) and other regulatory standards, helping you confidently manage complex compliance requirements.
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Trust Verification Screening Solutions to help you make informed hiring decisions. Learn how our thorough screening services can enhance your hiring process, reduce risk, and ensure a safer, more reliable workplace.
FAQs
1. What information is included in an MVR check?
MVR checks typically include traffic violations, license status, points, DUI convictions, and accident history. The scope of the report depends on state record-keeping practices.
2. How often should employers conduct MVR checks?
Employers should conduct MVR checks periodically for employees in driving roles during the hiring process. The frequency depends on industry requirements and company policies.
3. Are MVR checks subject to privacy laws?
Yes, MVR checks are regulated by the FCRA and state-specific laws. Employers must obtain written consent from candidates and handle the information responsibly.
4. What are the consequences of hiring a candidate with a poor driving record?
Hiring a candidate with a poor driving record can lead to safety risks, increased liability, higher insurance premiums, and potential reputational damage.
5. Can candidates dispute an MVR Report?
Yes, candidates can dispute inaccurate or incomplete information in an MVR report. Employers must allow this as part of the adverse action process.
