Pre-employment background checks are a standard component of the hiring process across most industries. These reviews confirm a candidate’s suitability for a role and mitigate various workplace risks. Companies use this information to make informed decisions that protect their assets, employees, and customers. Understanding the scope of this investigation helps job seekers prepare for the scrutiny involved in gaining employment.
Public Records Employers Review
Background checks often involve accessing information maintained by government agencies and public databases. Companies partner with Consumer Reporting Agencies (CRAs) to retrieve these records, which are compiled from official sources to ensure accuracy and compliance. This process provides employers with an objective look at a candidate’s history.
Criminal History
Employers routinely search for felony and misdemeanor convictions using nationwide and county-level databases. Pending criminal charges, which have not yet resulted in a conviction, may also appear on a background report. The scope of this search is governed by the Fair Credit Reporting Act (FCRA), which generally restricts the reporting of non-conviction information older than seven years. Serious crimes resulting in conviction, particularly felonies, are often reported indefinitely.
Driving Records
Motor Vehicle Records (MVRs) are pulled for positions where driving is a function of the job, such as delivery drivers, sales representatives, or anyone operating a company vehicle. The review focuses on identifying patterns of unsafe driving or infractions that could pose a liability risk. Issues reviewed include driving under the influence (DUI) convictions, excessive moving violations, and suspensions or revocations of the driver’s license.
Credit History
A candidate’s credit history may be examined for positions involving financial responsibility, access to large sums of money, or when required for government security clearance. This check is not a review of the credit score, but a detailed report of public record items like bankruptcies and debt repayment history. The review assesses financial responsibility and identifies potential vulnerabilities to fraud or theft, especially in finance-related roles.
Verifying Credentials and Work History
Beyond public records, employers verify the claims a candidate makes on their application and resume regarding their professional background. This process confirms that the candidate has the necessary experience and educational foundation for the role.
The verification of employment history involves contacting former employers to confirm start and end dates, job titles held, and sometimes the reason for separation. Many companies have policies limiting the information they release, often confirming only dates of employment to avoid legal liability. Some employers may attempt to verify salary history, though many jurisdictions now restrict this practice to prevent perpetuating wage inequality.
Educational attainment is confirmed by contacting the colleges, universities, or trade schools listed on the application. Verification focuses on confirming the dates of attendance and the specific degree or certification awarded. Professional licenses and certifications, such as those for nurses, accountants, or financial advisors, are also verified against issuing boards or state agencies to ensure they are current and in good standing. Discrepancies in dates or the misrepresentation of a degree are viewed negatively by prospective employers. This verification process ensures that the stated qualifications align with the requirements of the position before extending an offer of employment.
Candidate Rights and Background Check Regulations
The background check process is regulated at the federal level, primarily by the Fair Credit Reporting Act (FCRA), which governs how Consumer Reporting Agencies (CRAs) collect and disseminate information. This framework provides candidates with specific rights and imposes requirements on employers who use these reports for hiring decisions. Employers must obtain clear, written authorization from the candidate before initiating a background check.
The FCRA requires that the authorization be provided in a standalone document, separate from the employment application itself. This disclosure must clearly state that the information obtained may be used to make employment decisions.
If an employer decides not to hire a candidate based, even partially, on information in the background check report, they must follow a two-step adverse action process. First, the employer must provide a pre-adverse action notice, which includes a copy of the background report and a summary of the candidate’s rights under the FCRA. This initial notice gives the candidate a reasonable amount of time, typically five business days, to review the report and dispute any inaccuracies.
Following the waiting period, if the employer still intends to deny employment, they must send a final adverse action notice. This notice informs the candidate that the adverse decision has been made and provides contact information for the CRA that prepared the report. Additionally, state and local regulations, such as “Ban the Box” laws, impact the timing of when an employer can inquire about criminal history, often delaying the inquiry until later in the application process.
Specific Red Flags That May Lead to Rejection
Not every negative finding automatically results in rejection; the context and relevance to the job are factors. Employers conduct an individualized assessment to determine if a finding directly relates to the duties and risks of the specific position. A pattern of criminal findings, especially those related to violence, fraud, or theft, raises concerns and can lead to immediate disqualification.
Inconsistencies or misrepresentations in the application materials are viewed with high scrutiny, often demonstrating a lack of integrity. Falsifying a college degree, exaggerating job titles, or lying about dates of employment signal dishonesty that employers are unwilling to overlook.
Other concerning patterns include frequent job hopping, which might indicate a lack of commitment. Unexplained or lengthy gaps in employment history can also be a red flag, prompting employers to seek clarification. For roles involving fiduciary trust, findings like recent bankruptcies or a history of financial irresponsibility may lead to rejection. The employer’s decision rests on the degree to which the finding poses a demonstrable risk to the business or its customers. The employer must articulate a legitimate business reason for rejection, ensuring the decision is job-related and consistent with business necessity.
Handling Inaccuracies in Your Background Report
Candidates who receive a pre-adverse action notice and find inaccuracies on their background report have a right to dispute the information. The first step involves contacting the Consumer Reporting Agency (CRA) that prepared the report directly, using the contact information provided in the notice. The dispute must be submitted in writing and clearly identify the information that is incorrect or incomplete.
The candidate should provide supporting documentation, such as court records or official letters from educational institutions, to substantiate their claim of error. Once a dispute is filed, the CRA is legally obligated to investigate the claim, typically within 30 days, by contacting the original source of the information. Candidates should retain copies of all correspondence, including the initial dispute letter and any evidence provided. The CRA must then provide the candidate with the results of the investigation and issue a corrected report if the information is found to be inaccurate.