When applying for a new position, applicants often wonder how thoroughly their professional past is reviewed during a background check. A background check reviews public records and other data sources to verify identity, criminal history, and professional qualifications. Understanding the employment history component is important for managing expectations during the hiring phase, as this review validates the claims made by the candidate regarding their professional trajectory.
Defining the Employment History Check
The employment verification component is a specialized segment of the overall background investigation. Its objective is to confirm the statements an applicant makes on their resume or job application, verifying details like former employers and the exact duration of employment. This process provides the prospective employer with an objective confirmation of the applicant’s professional timeline. This differs from a traditional reference check, which focuses on subjective assessments of performance or character through conversations with former managers. The employment history check focuses solely on verifiable, administrative data points to support the candidate’s professional narrative.
How Employment History Information is Gathered
Consumer Reporting Agencies (CRAs) use several mechanisms to compile a candidate’s employment history. One common method involves the CRA directly contacting the human resources or payroll departments of former employers, who confirm the dates and titles provided. A second, increasingly prevalent source involves large, third-party employment verification databases, such as The Work Number. These commercial repositories aggregate payroll data from thousands of companies, offering instant, automated verification. The data is only as accurate as the records the previous employer submits, but the CRA uses this multi-pronged approach to build a comprehensive professional timeline.
Specific Employment Details Revealed in the Report
The background report typically confirms the specific start and end dates of employment with a former company, along with the verified job titles held during that tenure. These data points are standard administrative information that most former employers release upon request. Details surrounding compensation, such as salary history, are handled with greater sensitivity, as many employers are prohibited by law or policy from disclosing specific salary figures. Reasons for separation, such as resignation or termination, are sometimes reported but are frequently kept vague or omitted entirely to mitigate potential legal liability.
Reasons Employment History Might Be Missing or Incomplete
Company Policy Limitations
Many large organizations implement strict internal policies that restrict the information HR personnel are authorized to release. These policies mitigate legal risk and ensure consistent reporting. Often, a former employer will only confirm the applicant’s name and the dates of employment, refusing to provide details about job title or reason for departure. This minimal disclosure policy often results in an incomplete verification record.
Short Tenure or Contract Work
Employment periods of short duration or roles classified as freelance or contract work may not appear in standard verification systems. If an individual worked for only a few weeks, their record might not have been fully integrated into the official payroll database before departure. Independent contractor status also means the individual was not an official W-2 employee, so their tenure may not be logged in the typical HR system used for verification. These non-standard roles can create gaps in the verification report.
Name and Record Discrepancies
Inconsistencies between the name provided on the application and the name recorded in the former employer’s system can cause automated database searches to fail. This often arises when an applicant has recently changed their surname, and previous employment records are still filed under their former name. Minor clerical errors, the use of a nickname, or transposed social security numbers can also prevent an accurate match. These administrative differences may require manual intervention to correctly match the applicant with their professional records.
The Governing Legal Framework
The employment background verification process is governed by the Fair Credit Reporting Act (FCRA), a federal law that dictates how Consumer Reporting Agencies handle consumer information and promotes accuracy, fairness, and privacy. The FCRA requires an employer to obtain explicit written consent from the applicant before initiating any background check involving a third-party agency. If an employer intends to take an adverse action based on the report, the FCRA mandates a two-step notice process: a pre-adverse action notice followed by a final adverse action notice. This structure grants the applicant the right to review the information and initiate a dispute process if inaccuracies are identified. Various state-level regulations also complement the FCRA, placing restrictions on employers regarding issues like salary history inquiries.
What to Do If Your Employment History is Wrong
If an applicant discovers an error in their verified employment history, they have the right to dispute the inaccurate information. The applicant must contact the Consumer Reporting Agency (CRA) that furnished the report, not the prospective employer. The dispute should be submitted in writing, outlining the incorrect information and providing supporting documentation, such as W-2 forms or pay stubs. The FCRA requires the CRA to conduct a reasonable reinvestigation of the disputed item, typically within 30 days.