A background check is a process used to verify an individual’s personal history and credentials to determine their suitability for a specific role or purpose. Organizations conduct these reviews primarily to confirm the accuracy of information provided by an applicant and to mitigate risks associated with hiring or contracting an unknown party. The scope of the review is rarely one-size-fits-all, as the depth and type of records searched are customized based on the job requirements, industry, and compliance regulations. This screening process establishes trust and ensures the applicant meets the minimum requirements for the position they are seeking.
Identity and Criminal History Checks
The most fundamental step in a background screening is confirming a person’s legal identity and establishing a verifiable history map. This initial phase involves verifying the applicant’s name and date of birth against records associated with their Social Security Number. It also traces their residential history to identify jurisdictions where records must be searched across local, state, and federal levels.
Social Security Number and Address History Verification
A Consumer Reporting Agency (CRA) uses the Social Security Number and other identifying data to confirm identity and generate a list of past addresses. This address history is a necessary tool because criminal records are generally filed at the county or state level. Therefore, a complete criminal history check requires searching every jurisdiction where the applicant has resided to avoid missing offenses filed under a previous address.
Criminal Records (Felonies and Misdemeanors)
The search for criminal history involves checking public records across various court systems, often encompassing county, statewide, and federal databases. Screenings generally focus on conviction records, which include felonies and misdemeanors, as well as any pending cases currently moving through the court system. Arrests that did not result in a conviction or charges that were dismissed are typically not reported by CRAs. While federal law allows criminal convictions to be reported indefinitely, many states impose limitations, restricting the lookback period to seven years.
Motor Vehicle Records
Motor vehicle record (MVR) checks are generally reserved for roles that require a person to drive a company vehicle or operate a personal vehicle for business purposes. The MVR report is provided by the state’s Department of Motor Vehicles and details the individual’s driving history. This report confirms the license status, validity, class, and any endorsements or restrictions. It also lists traffic violations, such as excessive speeding or reckless driving, as well as serious offenses like driving under the influence (DUI). The lookback period for MVRs is highly dependent on state law, but it most commonly ranges from three to seven years.
Verifying Professional and Educational Credentials
A comprehensive background check validates the professional and academic claims made by an applicant. This process ensures the candidate possesses the necessary experience and qualifications for the job, protecting the employer from the risks associated with resume fraud. Verification is a specific process that requires direct outreach to the sources cited by the applicant.
For employment verification, the screening process contacts former employers to confirm the dates of employment and the job titles held by the applicant. Educational credential verification involves communicating with registrars or utilizing third-party services like the National Student Clearinghouse. This step confirms the applicant’s dates of attendance, the specific degree or diploma earned, and the name of the institution.
The Role of Credit History in Background Screening
A credit check is a distinct component of the screening process, primarily used for positions involving significant financial responsibility, access to company funds, or handling sensitive client financial information. An employment credit report differs from a standard consumer report because it specifically excludes the credit score. Employers receive a modified report highlighting financial public records, such as bankruptcies, tax liens, and collection accounts. This specialized report shows a history of financial stability and responsibility. Employers must obtain separate, explicit authorization from the applicant to run a credit check. Many states restrict the use of credit history for employment decisions, often making it illegal to check credit for jobs without financial duties or access to high-value assets.
Legal Limits on Reporting Time and Scope
The question of how far back a background check goes is largely governed by the Fair Credit Reporting Act (FCRA), a federal law that regulates how consumer reporting agencies (CRAs) collect and disseminate consumer information. The FCRA establishes a seven-year limit on reporting certain types of adverse civil information. This lookback period applies to civil suits, civil judgments, paid tax liens, and records of arrest that did not lead to a conviction.
This restriction does not apply to all parts of a background check. Criminal convictions can be reported indefinitely at the federal level. Employment history and educational attainment are also not subject to the seven-year limit. The FCRA includes a salary exemption, allowing CRAs to report adverse information older than seven years if the position has an expected annual salary of $75,000 or more.
Information That Is Legally Excluded
Federal and state laws impose strict limitations on the types of information that background screening agencies can legally report, even if the data is discovered during the search. Information concerning a person’s medical history, including genetic information or family medical history, is legally excluded from employment background reports. Similarly, information related to protected characteristics, such as race, religion, gender, or national origin, cannot be reported or used to make a hiring decision. State and local laws also provide additional protections by prohibiting the reporting of records that have been sealed, expunged, or statutorily eradicated.
Reviewing and Correcting Your Background Report
Individuals have specific rights under the FCRA to ensure the accuracy and fairness of their background reports. If an employer decides not to hire an applicant due to information contained in a background check, a process called “adverse action” is initiated. This requires the employer to provide the applicant with a copy of the report and a summary of their rights. If the applicant identifies incorrect or incomplete data, they have the right to dispute the information directly with the Consumer Reporting Agency (CRA). The CRA is legally obligated to conduct a reasonable investigation, typically within 30 days, to verify or correct the disputed item.