A background check is a comprehensive review of a job candidate’s commercial, criminal, and financial records. This screening process is standard practice, allowing employers to confirm applicant information and assess potential risks associated with a new hire. Understanding the factors that cause an employer to halt the hiring process is important. This article identifies the most common elements that lead to disqualification.
Understanding the Legal Framework of Background Checks
Employment screening is governed primarily by the Fair Credit Reporting Act (FCRA). This federal law regulates how consumer reporting agencies collect and disseminate information, ensuring accuracy, fairness, and privacy. Employers must obtain clear, written consent from an applicant before requesting a background check from a third-party agency.
The FCRA also dictates limits on how far back certain data can be reported, often called the seven-year rule. This generally applies to non-conviction data, such as arrests that did not lead to a conviction, paid tax liens, and most civil suits or judgments. Criminal convictions, however, can typically be reported indefinitely, though some states impose stricter limits.
Criminal History: The Most Common Disqualifiers
Criminal history is often the most significant factor leading to disqualification. Employers assess the nature of the offense, the time elapsed since the conviction, and the relevance of the crime to the job duties. For instance, an embezzlement conviction is highly relevant for a financial oversight position but less so for a manual labor role.
Felony Convictions
Felony convictions represent the highest level of offense and are a frequent cause for concern, especially if recent or related to the job’s duties. A company hiring for a security position will likely reject an applicant with a recent violent crime conviction, as this conflicts with the trust required for the role. The severity of the offense and the time since the sentence completion heavily influence the hiring decision.
Misdemeanors Relevant to the Role
Misdemeanor offenses, though less severe than felonies, can result in disqualification if they directly relate to job responsibilities. An applicant for a retail position with a recent misdemeanor conviction for shoplifting may be deemed untrustworthy to handle inventory or cash. Similarly, a misdemeanor assault conviction could be problematic for a candidate applying to a healthcare position involving direct patient care.
Pending Charges and Arrests
A background check may reveal an arrest record, but employers generally cannot legally use an arrest that did not result in a conviction as a basis for rejection. Pending criminal charges, however, indicate an unresolved legal matter. An employer may delay a final hiring decision until the case is resolved or may withdraw the offer, depending on the nature of the charges and company policy.
Inclusion on Watch Lists
Specialized roles in government, healthcare, or finance require checks against official watch lists. Inclusion on the Sex Offender Registry immediately disqualifies a candidate from positions involving minors or vulnerable populations. Healthcare providers often check the Office of Inspector General (OIG) Exclusions List, which identifies individuals barred from participating in federal healthcare programs due to fraud or abuse.
Verification Discrepancies
A major red flag is any finding suggesting a candidate was dishonest or inaccurate on their application materials. Discrepancies between the candidate’s claims and the background check confirmation signal a lack of integrity, undermining employer confidence. Even minor deviations can be viewed as intentional misrepresentation, leading to the immediate withdrawal of a job offer.
Common issues include inflating employment dates to cover short gaps or exaggerating job titles and responsibilities to appear more qualified. Falsely claiming academic degrees, certifications, or professional licenses is a serious offense that almost always results in disqualification. A failure to explain significant employment gaps, especially those lasting more than a few months, can also raise suspicion about the candidate’s work history.
Financial and Credit History Concerns
For certain sensitive roles, employers may legally review a candidate’s financial and credit history. This check is typically limited to positions involving handling large sums of money, accessing confidential financial data, or high-level executive roles. The report focuses on identifying patterns of severe financial irresponsibility rather than minor debts.
Red flags include recent bankruptcies, multiple severe delinquencies, or large outstanding collections accounts. These issues suggest a pattern of mismanagement that could translate into risk for the employer, such as susceptibility to fraud or inability to handle company finances responsibly. For most positions that do not involve financial oversight, general credit history is irrelevant and not a permissible part of the screening process.
Professional License and Driving Record Issues
Specific occupations require candidates to hold current, valid professional licenses or maintain a clean driving record. For roles like nursing, accounting, or engineering, an expired license or a record of disciplinary action by a state regulatory board is a serious disqualifier. These checks confirm the candidate’s ongoing compliance with industry standards and legal requirements.
Jobs involving operating a company vehicle or requiring extensive driving necessitate a review of the candidate’s Motor Vehicle Record (MVR). A poor MVR, characterized by multiple recent accidents, excessive moving violations, or a conviction for driving under the influence (DUI), indicates high risk. These findings suggest the candidate is a liability and may be uninsurable under the company’s commercial policy.
Your Right to Dispute Findings
If an employer decides not to hire a candidate based on background check information, they must follow the Adverse Action process. The first step is providing the candidate with a “Pre-Adverse Action” notice. This notice includes a copy of the background report and a summary of FCRA rights, giving the candidate an opportunity to review and dispute any inaccuracies.
The candidate must promptly contact the consumer reporting agency that prepared the report to initiate a dispute regarding incorrect information. The agency is obligated to investigate the disputed items, typically within 30 days, and correct any errors found. After allowing the candidate a reasonable period to address the report, the employer may issue a final “Adverse Action” notice, formally stating the decision not to hire.