Sterling (background check company)

Sterling (background check company)
Name	Sterling
Type	Private
Industry	Background screening
Founded	1974
Headquarters	New York City

Sterling (background check company) is a multinational provider of identity verification, background screening, and workforce risk management services used by corporations, healthcare providers, technology firms, and staffing agencies. The company operates in multiple jurisdictions and serves clients across sectors including finance, retail, healthcare, transportation, and information technology. Sterling competes and partners with a range of firms in the human resources, compliance, and risk domains.

History

Sterling traces its origins to the 1970s expansion of commercial screening in the United States alongside firms such as TransUnion, Equifax, Experian, Dun & Bradstreet, and LexisNexis. During the 1980s and 1990s the screening market saw consolidation with entrants like HireRight, First Advantage, ADP, and Kelly Services influencing service models. In the 2000s Sterling expanded amid regulatory developments associated with laws such as the Fair Credit Reporting Act and guidance from agencies including the Federal Trade Commission and the Consumer Financial Protection Bureau. Strategic growth included acquisitions and integration, echoing moves by companies such as Cognizant, Accenture, ManpowerGroup, and Randstad. In the 2010s and 2020s Sterling navigated globalization, serving multinational clients including Walmart, Amazon, Microsoft, Google, Pfizer, Johnson & Johnson, McDonald's, Uber Technologies, Lyft, Delta Air Lines, United Airlines, and Starbucks. The company responded to technological shifts influenced by providers such as IBM, Oracle, SAP, Salesforce, and Workday and to privacy frameworks exemplified by the General Data Protection Regulation and state laws in California and New York City.

Services and Products

Sterling offers a range of services aligned with propositions from firms like Indeed, LinkedIn, Glassdoor, ZipRecruiter, and CareerBuilder. Core offerings include criminal record checks, employment and education verifications, drug and health screenings, continuous monitoring, identity services, and global screening solutions that interact with databases maintained by institutions such as FBI, DOT, National Crime Information Center, and regional courts in jurisdictions like England and Wales, Scotland, Canada, Australia, and India. Product parallels exist with software from DocuSign, Adobe Systems, Okta, Ping Identity, Idemia, and Jumio for identity proofing and e-signature workflows. Sterling’s screening modules are integrated into applicant tracking systems used by Oracle Taleo, SAP SuccessFactors, Workday, iCIMS, Greenhouse Software, and SmartRecruiters.

Technology and Data Practices

Sterling’s technology stack draws on cloud infrastructure and practices associated with providers like Amazon Web Services, Microsoft Azure, and Google Cloud Platform. Data ingestion and analytics resemble platforms from Splunk, Snowflake, Databricks, Tableau, and Elastic. Identity verification and biometric trends mirror solutions by Clear, NEC Corporation, NEUROtechnology, and Onfido. Data privacy and security practices reflect standards championed by organizations such as International Organization for Standardization, National Institute of Standards and Technology, ISO/IEC 27001, and frameworks referenced by European Data Protection Board. Sterling’s approaches to machine learning and automation parallel initiatives by Palantir Technologies, SAS Institute, Teradata, and HPE while integrating APIs and developer tooling seen in Stripe, Twilio, Okta, and Auth0.

Compliance and Certifications

Sterling maintains compliance regimes influenced by statutes and standards including the Fair Credit Reporting Act, Health Insurance Portability and Accountability Act, General Data Protection Regulation, and state privacy statutes such as the California Consumer Privacy Act. Certifications and attestations often align with audits and standards produced by SOC 2, ISO/IEC 27001, and guidance from AICPA. Industry membership and alignment involve organizations like the National Association of Professional Background Screeners, International Association of Privacy Professionals, and sector-specific regulators such as Centers for Medicare & Medicaid Services and Financial Industry Regulatory Authority for clients in healthcare and finance.

Corporate Structure and Leadership

Sterling’s corporate governance resembles private-equity backed and publicly-traded peer transformations seen at Vista Equity Partners, Thoma Bravo, Silver Lake Partners, Blackstone Group, KKR, and The Carlyle Group in the technology and services sectors. Executive leadership typically interacts with boards comprising members experienced at companies such as Amazon, Google, Microsoft, Salesforce, Accenture, Deloitte, PwC, KPMG, and EY. Operational units reflect regional hubs in major metropolitan markets including New York City, London, Toronto, Sydney, Bengaluru, and Dublin.

Controversies and Legal Issues

Like other screening firms, Sterling has faced scrutiny over accuracy, consumer disputes, and regulatory enforcement akin to issues encountered by Equifax during its 2017 breach and litigation involving Accenture and PwC in professional services contexts. Legal challenges often cite compliance with the Fair Credit Reporting Act and adjudications in federal and state courts including venues in California, New York, and Illinois. High-profile controversies in the industry have prompted investigations by the Federal Trade Commission, actions by state attorneys general such as those in Massachusetts and New York, and class actions influenced by precedent from cases involving TransUnion, Experian, and Equifax. Stakeholder responses have involved collaboration with advocacy groups including the ACLU, Electronic Frontier Foundation, and privacy-focused entities engaged with parliamentary bodies such as the European Parliament.

Category:Background screening companies