A background check for employment is a review of a person’s history, but its scope is not limitless. How far back a check can go depends on the type of information sought, the job’s salary, and the specific laws of the state where the job is located. These reporting limits are legal restrictions placed on Consumer Reporting Agencies (CRAs) that compile the reports. The purpose of these laws is to balance an employer’s need for relevant information with an applicant’s right to privacy, preventing very old, non-relevant negative events from becoming a permanent barrier to a career.
The Federal Baseline: The 7-Year Reporting Rule
The primary federal regulation governing employment background checks is the Fair Credit Reporting Act (FCRA). This statute establishes a foundational seven-year limit on reporting certain types of negative information for most positions. The rule is designed to ensure that outdated financial or non-conviction events do not perpetually hinder a person’s ability to secure a job.
The seven-year restriction applies to non-conviction arrest records, civil suits, civil judgments, and most adverse financial data, including paid tax liens and accounts placed for collection. The time limit for these items typically begins from the date of entry or filing of the adverse event, not the date of its resolution.
An exception applies to bankruptcy records, which have their own reporting limits under the same federal law. Chapter 7 bankruptcies can be reported for up to ten years from the date of filing. Chapter 13 bankruptcies are typically subject to the standard seven-year reporting window.
Information Exempt from Reporting Limits
While the FCRA places a seven-year cap on many negative financial and civil records, it grants exceptions for information that can be reported indefinitely. This unlimited reporting period applies primarily to records of criminal convictions. Under federal law, a conviction record, regardless of how long ago it occurred, can be included in a background report provided to an employer.
Verification of an applicant’s professional credentials, employment history, and educational attainment is also not subject to any time limit. A background check can verify a university degree obtained twenty years ago or an applicant’s entire work history. These items are considered positive or neutral credentials that establish qualifications. Professional licenses and certifications also fall into this category of unlimited reportability.
The distinction between conviction and non-conviction records is significant. Non-conviction records, such as an arrest that did not lead to a charge or was later dismissed, are subject to the seven-year limit. An arrest record that resulted in a conviction, however, is removed from the federal time restriction and can be reported indefinitely.
Salary Threshold Exceptions
A specific statutory provision within the FCRA modifies the standard seven-year reporting rule based on the compensation of the position. For jobs expected to pay a certain annual salary, the federal reporting limits on adverse information are waived entirely. If a position meets the salary threshold, items normally restricted to a seven-year lookback can be reported indefinitely.
The threshold that triggers this exception is currently set at an expected annual salary of $75,000 or more. If the job meets or exceeds this figure, the Consumer Reporting Agency is permitted to report civil suits, judgments, paid tax liens, and non-conviction arrests that are older than seven years. This allows employers hiring for higher-earning roles to review a broader scope of an applicant’s financial and civil history.
This provision expands the lookback for adverse information otherwise protected by the seven-year rule for lower-salary positions.
State and Local Laws That Shorten the Lookback Period
While the FCRA establishes a federal floor for consumer protection, state and local jurisdictions often enact laws that provide greater protection by shortening the lookback period. These state-specific laws frequently override the federal standard, especially concerning criminal records. For example, many states, including California, Massachusetts, and New York, limit the reporting of criminal convictions to seven years, regardless of the FCRA’s indefinite reporting allowance.
“Ban the Box” legislation also impacts the lookback period and the use of criminal history. These laws often prohibit employers from asking about criminal history on initial job applications and impose restrictions on how far back a criminal record search can go. Some state laws may mandate a five-year lookback period for certain misdemeanors or non-violent offenses, further compressing the federal standard.
State laws also provide clearer guidelines for non-conviction records, including cases that were dismissed, sealed, or expunged. In many states, a Consumer Reporting Agency is legally prohibited from reporting any record that has been sealed or expunged, effectively removing it from the lookback period. Employers and CRAs must comply with the most protective law, which is typically the state or local statute.
Understanding the Difference Between Record Existence and Reportability
A common misunderstanding is that when the lookback period expires, the record itself is erased or destroyed. The time limit imposed by the FCRA and state laws does not eliminate the underlying public record. Court records, for example, remain in the court’s archive indefinitely, regardless of how old they are.
The lookback period limits only the ability of a Consumer Reporting Agency to report that information to a prospective employer. When a CRA conducts a search, it may find a twelve-year-old civil judgment, but it is legally prohibited from including that finding in the background check report if the job falls under the seven-year restriction. The reportability limit is a consumer protection measure that restricts information flow, not a mechanism for record expungement.