A background check is a standardized due diligence process employers use to verify the information provided by a job applicant and gain a broader understanding of their history. This review involves consulting various public and private records to confirm details like identity, work history, and qualifications. For job seekers, understanding this process is helpful because it demystifies a standard part of the hiring procedure. The investigation helps employers make informed hiring decisions, ensuring that the candidate’s claims align with documented facts.
The Purpose of Employer Background Checks
Companies conduct background checks primarily to manage potential harm and financial exposure. Reviewing a candidate’s past helps mitigate the risk of negligent hiring claims, which can arise if an employee with a history of misconduct causes harm on the job and the employer failed to perform a reasonable check. This process is a foundational step in providing a secure and reliable work environment for employees and customers.
The checks also validate the truthfulness of the application and resume, confirming the candidate’s professional credibility. Employers ensure the person they hire possesses the necessary experience and qualifications to perform the job successfully. Furthermore, certain industries, such as finance, healthcare, and transportation, have governmental regulations that mandate specific background screening for compliance reasons. These required screenings protect sensitive information and vulnerable populations.
Key Areas Employers Investigate
Criminal History Records
The review of criminal history involves searching local, state, and national databases for conviction records. A distinction is made between felonies, which are severe crimes resulting in a sentence of a year or more, and misdemeanors, which are considered lesser offenses. The impact of a record often depends on its relevance to the job being sought.
Reporting limitations govern how far back a check can reach. Some jurisdictions restrict the reporting of non-conviction information, such as arrests that did not lead to charges. For example, a felony conviction may be reportable for ten years in some states, while records of certain serious offenses like murder may be permanently accessible. The Equal Employment Opportunity Commission (EEOC) advises employers to consider three factors before using a criminal record to disqualify a candidate: the nature and gravity of the offense, the time elapsed since the conviction, and the specific duties of the job.
Employment and Reference Verification
Employers verify employment history to confirm the accuracy of details listed on the application. Verification focuses on objective facts, such as the dates of employment, job titles held, and the reason for leaving. This information is often obtained by contacting the human resources or payroll departments of former employers.
Professional reference checks are a distinct step where the employer contacts individuals provided by the candidate to gain insight into work ethic, performance, and interpersonal skills. Many former employers limit the information they provide to basic details to reduce legal liability. The check helps gauge the candidate’s professional reputation and suitability for the role.
Educational and Professional Credentials
Verifying academic history involves confirming that the candidate earned the degrees, certifications, or professional licenses claimed. This is accomplished by contacting educational institutions, licensing boards, or third-party verification services. The verification process confirms attendance dates, the credential awarded, and the major or field of study.
Accuracy is paramount because discrepancies between the application and official records, especially regarding the type of degree or the dates of attendance, can be interpreted as misrepresentation. For positions requiring specialized knowledge or legal practice, a separate professional license verification ensures the credential remains in good standing and has no disciplinary actions.
Driving Records
A Motor Vehicle Record (MVR) check reviews a candidate’s driving history, including the status of their driver’s license, moving violations, and accident history. This check is primarily reserved for roles that require operating a company vehicle or regular driving as a job duty, such as delivery drivers.
MVRs typically report information from the past three to ten years, depending on state laws and employer policy. Reviewing the MVR helps the employer assess the candidate’s road safety record and protects the company from liability in case of an accident. MVR checks are often legally required in regulated industries, such as those under the Department of Transportation.
Credit and Financial History
The review of credit and financial history is the least common type of screening. It is generally reserved for positions involving high-level financial responsibility or access to sensitive data, including roles in banking, accounting, or executive management. The check provides a snapshot of an applicant’s financial habits, such as payment history and bankruptcies, but does not include the credit score itself.
Employers use this information to evaluate the candidate’s trustworthiness and ability to manage money. This is particularly relevant in roles where financial distress could present a risk of fraud or theft. State laws frequently restrict the use of credit checks for employment purposes.
Legal Protections and Candidate Rights
The Fair Credit Reporting Act (FCRA) is a federal law that regulates how employers use background checks conducted by a third-party consumer reporting agency. The law mandates that employers must first provide a clear, written disclosure and obtain the candidate’s explicit written consent before initiating the screening. This ensures applicants are aware of the check and have authorized the release of their information for employment purposes.
If an employer intends to take an adverse action, such as rescinding a job offer, based on the background report, the FCRA requires a two-step “adverse action” process. The candidate must first receive a pre-adverse action notice, which includes a copy of the report and a summary of their rights under the FCRA. This provides the candidate an opportunity to review the report and dispute any inaccuracies before the final decision is made.
The Equal Employment Opportunity Commission (EEOC) provides guidance to prevent discriminatory hiring practices, particularly concerning the use of criminal records. The EEOC advises against blanket policies that exclude all applicants with a criminal history, as this can disproportionately affect certain racial or national origin groups. Employers must demonstrate that any exclusion is job-related and consistent with a business necessity. Furthermore, many state and local “Ban the Box” laws restrict when an employer can ask about criminal history, often delaying the inquiry until after a conditional job offer has been extended.
Common Findings That Act as Red Flags
Misrepresentation or dishonesty on the application is viewed as the most significant disqualifier during a background check. Fabrication of credentials, such as claiming an unearned degree or inflating job titles, signals a lack of integrity and often leads to the immediate withdrawal of a job offer.
Severe or recent violent felony convictions are strong red flags, particularly for positions involving vulnerable populations or direct public interaction. Employers assess the gravity of the offense and the time elapsed since the conviction to determine the risk to the workplace. A pattern of negative professional references, such as reports of poor performance or an inability to work with others, also raises concerns about cultural fit.
Financial mismanagement, including recent bankruptcy or collection accounts, acts as a red flag primarily for finance-related or high-trust roles. While poor credit history is generally not a factor for most jobs, it becomes relevant when the position requires handling large sums of money or managing sensitive financial data.
Preparing for the Background Check Process
Candidates should proactively review their own public records, including their credit report and court records, to identify potential issues before the employer does. Obtaining these documents allows a candidate to understand exactly what information an employer might see during the screening process. Ensure that all dates of employment, job titles, and educational claims on the application are consistent with documented records.
Being upfront about known, minor issues that are likely to surface, such as an old misdemeanor conviction, demonstrates honesty and integrity. This transparency allows the candidate to provide context or explanation before the background check results are delivered.