A pre-employment background check reviews a job candidate’s history to assess suitability for a position. The scope of this review is not uniform and depends on the type of information sought and the legal jurisdiction governing the search. Determining how far back a company can legally look involves navigating federal rules, state statutes, and the specific nature of the records examined. Reporting time limits vary significantly between public records (criminal or financial history) and non-public verifications (employment or education claims).
The Federal Law Governing Background Checks
The primary legislation governing how far back companies can look is the Fair Credit Reporting Act (FCRA). This federal law regulates Consumer Reporting Agencies (CRAs) that compile and sell background check reports to employers. The FCRA ensures accuracy, fairness, and privacy in the collection and use of consumer information for employment purposes.
The FCRA generally restricts reporting adverse information older than seven years. This limitation applies specifically to negative information that is not a conviction, such as paid tax liens, civil suits, civil judgments, and records of arrest that did not result in a conviction. This rule allows applicants a fresh start by preventing older, non-relevant negative events from hindering employment. State and local statutes frequently adjust or supersede this federal framework.
Look-Back Periods for Financial and Civil Records
The seven-year reporting restriction applies directly to most adverse financial and civil records. Records of civil suits, civil judgments, and accounts placed for collection cannot be reported by a CRA if the record’s entry or disposition date is more than seven years old. The time limit for reporting collection accounts begins 180 days after the delinquency date.
Bankruptcies are exceptions to the financial reporting rules. Chapter 7 bankruptcies, which involve liquidation, can be reported for up to ten years from the date of the order for relief. Chapter 13 bankruptcies generally fall under the standard seven-year limit. Paid tax liens are usually removed after seven years from the payment date, while unpaid tax liens may be reported indefinitely unless state law dictates otherwise.
Look-Back Periods for Criminal History
Criminal history is a nuanced area because the FCRA distinguishes between records of arrest and records of conviction. Records of arrest that did not lead to a conviction, or arrests where the case is still pending, are generally subject to the seven-year reporting restriction. This limitation prevents employers from seeing old arrests that were dismissed, acquitted, or otherwise not prosecuted.
The federal law generally places no time limit on reporting criminal convictions, including both felonies and misdemeanors. A conviction record can be reported regardless of how far back it occurred, allowing companies to look back indefinitely. This indefinite look-back period is based on the legal standing that a conviction is a matter of public record and definitive proof of a criminal act.
While the record of a crime may go back indefinitely, employers are expected to evaluate the relevance of the conviction to the job offered. The Equal Employment Opportunity Commission (EEOC) guidance suggests employers consider the nature and gravity of the offense, the time passed since the conviction, and the nature of the job sought. This guidance ensures that a conviction is not used to create a blanket exclusion from employment.
Verification of Employment and Education History
The seven-year rule generally does not apply to the verification of factual information, such as employment and education history. These checks verify claims made by the applicant on their resume, rather than reporting adverse public records. Consequently, companies can verify past employment titles, dates of tenure, and salaries as far back as they deem relevant to the position.
Employers commonly verify the last seven to ten years of employment history to ensure accuracy. Verification can extend twenty years or more if the position requires specialized or long-term experience. Education history, including degrees obtained and dates of attendance, can be verified indefinitely because this information is not considered adverse public data subject to the FCRA’s time limits.
When Companies Can Look Back Further Than Seven Years
Specific legal exceptions allow companies to bypass the FCRA’s seven-year limit on adverse non-conviction information. The most common federal exception relates to compensation. If the annual salary for the job is $75,000 or more, the seven-year look-back restriction is lifted, allowing CRAs to report adverse non-conviction information older than seven years.
Regulated industries and government roles operate under statutory requirements that mandate extended or unlimited background checks. Positions in finance requiring security clearances or handling large sums of money often have industry-specific regulations that supersede standard FCRA limits. Roles involving national security, nuclear energy, or defense contracting are subject to federal regulations requiring a deeper historical review.
State-Specific Limitations on Background Checks
Many states and local jurisdictions have enacted laws that provide greater protection than the federal FCRA, shortening the look-back period or restricting the use of certain records. These state-level mandates often apply the seven-year limit to criminal convictions, even though the FCRA permits indefinite reporting. States like California, New York, and Massachusetts have stricter laws that limit the reporting of most conviction records to seven years.
The rise of “Ban-the-Box” legislation limits when an employer can inquire about an applicant’s criminal history, often preventing the question from being asked on the initial application form. These laws delay the employer’s access to the information, impacting the hiring process, though they do not necessarily change the look-back period itself. Applicants must research their specific state and city laws, as these local regulations often dictate the actual look-back period and the scope of information an employer can use in a hiring decision.