A background check is a process used by employers, landlords, and volunteer organizations to verify an applicant’s information and assess potential risk. This screening involves reviewing public records and private databases to confirm identity, history, and suitability for a specific role. Understanding the scope of this review is important because it establishes clear boundaries regarding the personal information that can be accessed and used during the application process.
The Legal Framework Governing Background Checks
The permissibility of information reported is primarily dictated by the federal Fair Credit Reporting Act (FCRA). This legislation regulates consumer reporting agencies (CRAs) that compile and sell consumer reports to third parties like employers. The FCRA mandates that applicants provide written consent before a report is pulled and establishes procedures for handling adverse action, such as denying employment. State and local regulations, such as “Ban the Box” laws, frequently impose additional restrictions, often limiting when an employer can inquire about criminal history.
Verification of Personal Identifiers
The initial stage of any comprehensive background check confirms the applicant’s identity to ensure subsequent records belong to the correct person. This process typically begins with a Social Security Number (SSN) trace, which pulls a history of names, addresses, and dates associated with that number. The trace generates an address history that is then used as a roadmap for searching county, state, and federal criminal and civil records. Identifying past residences and name aliases is necessary for conducting an accurate search of geographically indexed public records.
Criminal History Records
Criminal history reports distinguish between arrests, which indicate a person was taken into custody but do not imply guilt, and convictions, which confirm a finding of guilt. The FCRA generally prohibits reporting non-conviction data, such as arrests, civil suits, and dismissed charges, that are older than seven years. This restriction typically does not apply to criminal convictions, which can often be reported indefinitely under federal guidelines unless state laws impose a time limit. Data is sourced from local county courts, state repositories, and federal databases. Accuracy depends on the timeliness of record updates, especially if a case was dismissed or expunged but the database was not properly updated.
Financial and Credit Information
When an employer requests a financial or credit check, they receive a modified consumer report different from the personal credit score report used for loans. This employment-specific report focuses on financial responsibility and includes public record information such as bankruptcies, civil judgments, and accounts placed for collection. Employers do not see the applicant’s credit score, account numbers, or date of birth, which are redacted to protect privacy. For positions with a salary below a certain threshold, the FCRA generally restricts reporting most negative financial information after seven years. Bankruptcies are an exception, as they can be reported for up to ten years from the date of filing, regardless of the salary threshold.
Verification of Employment and Education History
The verification segment of a background check is designed to confirm the veracity of the applicant’s professional and academic credentials. Employment verification confirms dates of employment, job titles, and sometimes final salary at previous workplaces. This information is typically confirmed by contacting the former employer’s human resources department or a third-party verification service. Past employers often limit disclosures to factual data points to avoid legal risk, meaning job performance or the specific reason for departure are usually not provided. Educational verification involves contacting the institution to confirm the degree obtained, the major, and the dates of attendance.
Driving and Professional Licensing Records
For roles involving operating a company vehicle or frequent driving, a Motor Vehicle Record (MVR) check is a common component of the screening process. An MVR check reveals the applicant’s license status, traffic violations, accident history, and instances of driving under the influence (DUI) over a specified period. This record assesses the applicant’s safety and insurability as a driver. The check may also verify professional licenses, certifications, or registrations with relevant licensing boards. This verification confirms the license is active and reveals any public disciplinary actions, such as suspensions or revocations.
Information That Cannot Be Reported
Federal and state laws prohibit background checks from reporting certain personal data to prevent discriminatory hiring practices. This restricted information includes medical history, genetic information, worker’s compensation claims, and details related to age, race, religion, or sexual orientation. The seven-year reporting limit applies to most adverse non-conviction civil and financial data, meaning information like dismissed civil suits or older collection accounts cannot be shared with employers below the FCRA’s designated salary threshold. Records that have been legally sealed or expunged are also typically inaccessible and cannot be disclosed.