Have you ever done a background check with HireRight? They ask you for all of your previous companies and contact them to verify. I think there is an option not to call your current employer.
There's a huge background check fetish here in the US, and it's facilitated by a massive lack of privacy and an equally big fetish for everlasting punishment.
Want a job or rent a place? Background check, baby!
Not just prior employment but even civil court cases and criminal history are all a part of it, and it doesn't help that even something as small as a traffic ticket shows up on your records.
Have you ever sued a landlord to get your deposit back? There's a good chance your new landlord doesn't want you.
Were you convicted of petty theft years ago? That might cost you your prospective job.
In most of the EU, much of this information isn't public, and in many countries, criminal records are inaccessible.
Often, in the latter, you can get a declaration of “good behavior” from the government if your prospective job has some sensitive elements. The government will then issue one or decline based on the specific job and its risks with your record in mind.
Were you caught committing a DUI? You won't get one for a job as a cab driver, but you can safely get one for working at a bank.
Have you got caught embezzling money? Then you can't get one working at a bank, but you're welcome to become a cab driver.
In the US? Well, you're SOOL. Enjoy being marked for life as your options to get an income legally have significantly shrunk.
Aside from things that may lead to accusations of violating equal opportunity employment laws, you can ask just about anything. Many previous employers won't do more than confirm employment though, as a negative review may open them up to liability. As a result, the norm in many industries is to only ask (and receive) confirmation of employment.