The process of hiring a new employee often involves a background check, a standard procedure used by organizations to verify an applicant’s identity and assess their suitability for a role. Employers seek information beyond the claims made on a resume, aiming to create a comprehensive profile of a candidate. The scope of this investigation varies widely depending on the industry, specific job duties, and the level of security or financial responsibility involved. Understanding the different facets of a background check helps job seekers anticipate the information employers will review.
The Legal Rules Governing Background Checks
The mechanics of background checks are governed primarily by the federal Fair Credit Reporting Act (FCRA). The FCRA ensures the accuracy, fairness, and privacy of consumer information collected by third-party Consumer Reporting Agencies (CRAs). This law applies whenever an outside firm is hired to gather information for employment purposes, including hiring, promotion, or retention decisions. The FCRA mandates that an employer must first provide the applicant with a clear written notice that a consumer report may be obtained. This disclosure must be a stand-alone document, separate from the job application.
The employer must then obtain the individual’s signed, written authorization before initiating the check. This consent is required for the CRA to legally release the report. State and local jurisdictions often impose additional regulations that restrict the timing or content of a background check. For example, “Ban the Box” measures prohibit employers from inquiring about an applicant’s criminal history during the initial hiring stages. These regulations delay criminal history inquiries until later in the process, often after a conditional offer of employment, ensuring qualifications are evaluated first.
Core Information Verification Areas
Employers focus on foundational areas to confirm the factual claims made by the applicant and assess their reliability. These verifications form the basis of nearly all comprehensive employment screening processes. The depth of the search in these areas often determines the cost and time required for the background check.
Criminal History Records
The search for criminal history involves checking for misdemeanors and felonies across local, state, and federal databases. Employers seek records of convictions, which are generally reportable indefinitely under federal law. However, many state laws impose a seven-year limit on reporting. Arrest records that did not result in a conviction are generally not reportable after seven years under the FCRA for jobs below a certain salary threshold. This search identifies past behavior that may directly relate to the job’s duties or pose a risk to the workplace or customers.
Employment History Verification
Verification of past employment confirms the factual accuracy of the applicant’s resume or application. Employers typically confirm previous job titles, dates of employment, and sometimes the reason for separation. This process usually involves contacting the human resources or payroll departments of former employers. The focus remains on validating the timeline and capacity in which the applicant served, as performance reviews are rarely shared due to liability concerns.
Education and Professional Licensing Verification
Confirming educational background involves verifying the degrees, certifications, or diplomas claimed on the application. Screening agencies contact issuing institutions to confirm attendance dates and the type of credential awarded. For positions requiring specific qualifications, such as nursing or law, the employer confirms the validity and current standing of professional licenses or certifications. This verification often uses third-party services that maintain databases of accredited institutions and licensing boards to ensure the applicant is legally qualified.
Specialized Checks Based on the Position
Beyond core verifications, specific roles or industries require specialized background checks tailored to the job’s responsibilities and potential risks. These checks are performed only when the information is directly relevant to the position’s requirements.
Driving Records
Motor Vehicle Records (MVR) checks are performed for positions requiring the employee to operate a company vehicle or drive frequently for business. The MVR report provides details such as the driver’s license number, classification, expiration date, and a history of traffic violations, accidents, and license suspensions. Companies regulated by the Department of Transportation (DOT) are required to run MVR checks, and other employers use them to mitigate liability and ensure public safety. Reports can cover various lookback periods depending on state law and job requirements.
Financial and Credit Reports
A pre-employment credit check provides a snapshot of the individual’s financial stability, including public records like bankruptcies, judgments, outstanding collections, and payment history. These checks are typically reserved for roles involving fiduciary responsibilities, access to sensitive financial data, or handling large sums of money. Strict state and local laws often limit the use of credit history in hiring. Federal law prohibits reporting certain adverse financial information older than seven years.
Drug and Alcohol Screening
Drug and alcohol screening is common in safety-sensitive industries, such as manufacturing, healthcare, and transportation, and for positions regulated by federal agencies. These screenings are usually conducted after a conditional offer of employment is extended. The process involves testing for the presence of illicit substances or alcohol, and the results ensure compliance with safety regulations and workplace policies.
Social Media and Online Presence
Although not regulated by the FCRA, some employers review an applicant’s public-facing social media profiles and online activities. This review assesses professionalism, identifies egregious behavior, or ensures public statements align with company values. Employers cannot demand access to private accounts. They must also avoid using information that could lead to discrimination based on protected characteristics like age, religion, or disability revealed through a profile.
Information That Cannot Be Checked or Used
Federal and state laws restrict the type of information employers can collect or use when making hiring decisions. The FCRA prohibits Consumer Reporting Agencies from reporting most adverse information older than seven years, including civil suits, judgments, and paid tax liens. Bankruptcies are generally not reportable after ten years.
Employers are prohibited from using records of arrests that did not lead to a conviction. Medical records are protected under the Health Insurance Portability and Accountability Act (HIPAA). Furthermore, employers cannot use information about worker’s compensation claims to discriminate against an applicant under the Americans with Disabilities Act. Information related to an individual’s age, marital status, or religion cannot be used as a basis for a hiring decision, as these are protected classes under Equal Employment Opportunity laws.
Your Rights During the Background Check Process
Applicants have specific, legally protected rights under the FCRA once a background check is initiated. The employer must provide a clear disclosure and obtain written consent before ordering any consumer report.
If an employer intends to take an adverse action, such as denying a job offer, based on the report, they must follow a two-step notification process. The first step is the pre-adverse action notice, requiring the employer to provide the applicant with a copy of the report and a summary of their FCRA rights. This provides the applicant with a reasonable amount of time, typically at least five business days, to review the report and dispute any inaccuracies before a final decision is made. If the applicant disputes the information, the Consumer Reporting Agency has 30 days to reinvestigate the claim. If the employer proceeds with the adverse decision after the waiting period, they must send a final adverse action notice. This final notice confirms the action has been taken and informs the applicant of their right to obtain a free copy of the report from the CRA within 60 days.