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As an activist for the transgender community I’d like to offer some suggestions to help increase the privacy of and reduce potential discrimination by employers against transgender people with respect to the background screening process.
If it is necessary to ask about previous names, provide a means where the applicant can submit such name(s) directly to the background investigator (if they would be indicative of a gender change or other “sensitive” status) and not relay them back to the employer unless a relevant record is found under the old name that the employer wishes to access. A system like this exists in the UK for their criminal history checks when done on a trans person.
If the issue at hand is something like contacting references or verifying a degree, instead of a general inquiry about all previous names ask specifically if such references would only know you by, or if such credentials are under, another name (limiting disclosure to a “need to know” basis).
An employer should not take adverse action solely for failing to disclose a name that is immaterial and would indicate a protected status (such as someone who transitioned gender and changed their name as a child or teen – where usually all records relevant to an employment background check would be under the post-transition name). (Suzanne discussed situations like these at the link below, but this would help ensure there is no discriminatory treatment.)
https://www.evilhrlady.org/2016/10/what-past-names-share-job-application.html