A pre-employment background check is a formalized process employers use to verify an applicant’s qualifications and assess their suitability for a specific role. This investigation involves a third-party screening company gathering information from various public and private sources. The primary goal is to confirm identity, validate credentials, and review a candidate’s history to mitigate potential workplace risks. The scope of information reported is strictly regulated by federal and state statutes designed to protect consumer privacy rights.
The Legal Foundation of Background Screening
The primary federal statute governing pre-employment screening is the Fair Credit Reporting Act (FCRA), which dictates how consumer reporting agencies collect, use, and distribute an individual’s personal information. The FCRA grants applicants specific rights, starting with the requirement that an employer must provide a clear written disclosure and obtain the applicant’s explicit written consent before ordering a report. Applicants also have the right to receive a copy of any report furnished to the prospective employer. State and local jurisdictions often introduce additional restrictions that further limit what information can be reported. These laws, such as “Ban the Box” ordinances, can narrow the scope of reportable data, particularly concerning criminal history.
Verification of Identity, Employment, and Education
Identity Verification
Identity verification is typically conducted through a Social Security Number (SSN) trace. This trace confirms the applicant’s name, date of birth, and history of residences associated with that number. It aids the screening agency in identifying the correct court jurisdictions and data repositories for subsequent searches.
Employment Verification
Verification of past employment focuses on confirming the start and end dates of employment, job titles held, and sometimes the reason for leaving the position. The screening agency contacts previous employers directly to confirm these details. Discrepancies in employment dates, especially those covering significant gaps, are common findings that employers may seek to clarify.
Educational Verification
Educational verification involves contacting the specific academic institutions listed to confirm the dates of attendance, the type of degree or certificate earned, and the major or field of study. Findings often revolve around misstated graduation dates or claiming a degree or certification that was never actually conferred by the institution.
Criminal History and Public Safety Records
The review of an applicant’s criminal history is frequently the most detailed component of a pre-employment background check. This search typically encompasses records for both felony and misdemeanor convictions, along with any currently pending criminal cases, compiled from county, state, and federal databases. The FCRA establishes reporting limitations on certain non-conviction information, such as records of arrest that did not lead to a conviction, which can generally only be reported for a maximum of seven years. Criminal convictions, however, are not subject to this time restriction and can be reported indefinitely. State and local laws often impose additional limitations concerning the reporting of arrests, dismissed charges, and expunged records.
The background check also includes a search of the national Sex Offender Registry. This search is standard practice, especially for positions that involve working with vulnerable populations.
Financial Credit Checks and Driving Records
Financial Credit Checks
Financial credit checks are a specialized component of the background investigation, generally reserved for roles that involve handling company money, managing sensitive financial data, or holding a fiduciary responsibility. Employers do not typically receive a credit score; instead, they receive a modified consumer report focused on financial public records. This employer-specific report highlights factors such as bankruptcies, civil judgments, and significant collection accounts or tax liens filed against the applicant. The purpose is to identify patterns of financial distress that could potentially pose a risk of theft or fraud in a financially sensitive role.
Driving Records (MVRs)
Motor Vehicle Records (MVRs) are a specialized check requested only when a job requires the applicant to drive as a regular part of their duties. The MVR search pulls information directly from the state’s Department of Motor Vehicles. The report details the applicant’s license status (valid, suspended, or revoked) and lists any traffic violations, citations, or accidents. Employers use this information to assess the applicant’s history of safe driving and determine insurability, especially noting serious offenses like driving under the influence (DUI).
Information That Legally Cannot Be Reported
Federal law strictly prohibits consumer reporting agencies from including certain categories of information on a background check for employment purposes. Information related to an applicant’s protected class status, such as race, religion, national origin, or gender, is explicitly excluded. Similarly, an individual’s medical history or records related to worker’s compensation claims cannot be legally disclosed. The FCRA also establishes specific time limits for reporting various adverse civil data points. Civil suits, civil judgments, and paid tax liens are generally removed from the report after seven years, while bankruptcies can be reported for up to ten years from the date of filing.
The Adverse Action Process
If an employer decides to take a negative action, such as rescinding a job offer or not hiring an applicant, based on information in the background check, they must follow a mandated two-step process known as adverse action. This procedure protects the applicant’s right to review and dispute potentially inaccurate information before a final decision is made. The first step is the pre-adverse action notice, where the employer provides the applicant with a copy of the report and a summary of their FCRA rights. This notice gives the applicant a reasonable amount of time, typically five business days, to review the information and contact the screening agency to dispute any items. If the employer maintains their decision after the dispute period, they send a final adverse action notice, formally informing the applicant of the decision to deny employment and providing the contact information of the reporting agency.