Although it is relatively simple to check on applicants' basic professional competency, ensuring the moral competency of potential school employees is much more difficult. This digest examines major legal issues, district liabilities and responsibilities, suggested guidelines, and information sources involving employee background checks. Of more than 230,000 cases of child abuse in 1984, only about 200 involved school employees. Many lawmakers and educators favor applicant privacy rights, while others point to the potential for harmful behaviors besides child abuse. District size seems a major determinant of schools' screening practices. Whereas smaller districts rely more on references and informal sources, larger systems tend to use bureaucratized procedures and allow employees to start working before all checking is concluded. "Wrongful discharge" is also a major issue. Background checks are subject to twin problems: "saying too much" (risking defamation charges) and "asking too little" (risking a negligent hiring charge). Many states have mandatory FBI checks; some require fingerprint checks of all school applicants. Districts can also check local police records and state registries of known child abusers and must use careful documentation. The American Association of School Administrators and the National Association of State Boards of Education have prepared some helpful guidelines. The Teacher Identification Clearinghouse and a comprehensive handbook, "The Guide to Background Investigation" (Richard Long, 1989) are suggested resources. (Five references) (MLH)