Background checks are a foundational due diligence process HR teams use to confirm the reliability and veracity of a job candidate’s application. HR uses these screenings primarily for risk mitigation, ensuring a safe workplace, and maintaining regulatory compliance. The process aims to establish a comprehensive picture of an applicant’s past behavior and professional history, moving beyond simply confirming facts on a resume. The specific items examined are dictated by the requirements of the role and governed by a strict legal framework designed to protect the applicant’s rights.
The Legal Rules Governing HR Checks
The use of consumer reports for employment screening is governed by the Fair Credit Reporting Act (FCRA), which dictates the procedural steps HR must follow. This federal law requires employers to provide a clear, standalone written disclosure stating that a background check will be conducted for employment purposes. Employers must obtain the applicant’s explicit written consent before initiating any screening through a third-party Consumer Reporting Agency. This framework ensures transparency, though refusal may result in the withdrawal of the job offer.
State and local jurisdictions often impose additional restrictions on the scope and timing of inquiries. For instance, “Ban the Box” laws limit when an employer can ask about an applicant’s criminal history, often delaying the inquiry until after a conditional job offer. HR departments must navigate both federal and local rules to ensure a legally defensible hiring process.
Verifying Identity and Work History
The initial phase of a background check focuses on identity confirmation and verifying factual claims made on the application. Identity verification often begins with a Social Security Number (SSN) trace. This database search reveals the state and approximate year the number was issued, along with associated names or aliases. This trace establishes the applicant’s residential history, which informs the geographic scope of subsequent criminal record searches.
HR teams then verify the applicant’s educational and employment claims to uncover discrepancies. Education verification is frequently performed using third-party services that interface with the National Student Clearinghouse, confirming degrees earned and dates of attendance. For employment history, the check focuses on confirming the dates of employment and job titles held, often over the last seven to ten years. Due to liability concerns, many former employers limit the information they provide to these factual data points, sometimes using automated services.
Criminal History Screening and Scope
Criminal history checks are sensitive components of the screening process. The search typically covers felony and misdemeanor convictions at the county, state, and federal levels. While conviction records are generally reportable indefinitely, a seven-year lookback period is often used for non-conviction data. Arrest records that did not lead to a conviction are typically not permitted for consideration.
The Equal Employment Opportunity Commission (EEOC) guidance requires employers to perform an individualized assessment before making a final decision based on a conviction. This assessment compels HR to consider three specific factors:
- The nature and gravity of the offense.
- The time that has passed since the offense or completion of the sentence.
- The relevance of the offense to the duties of the position being sought.
For example, a conviction for embezzlement would be highly relevant for a financial controller role but less relevant for a warehouse worker. This individualized review prevents blanket exclusions that could lead to discriminatory practices.
Specialized Checks for Certain Roles
Some positions require specialized screenings beyond standard criminal and verification checks when a direct business necessity justifies the added scrutiny. These checks are conditional on specific job requirements and require separate, explicit consent from the applicant.
Credit History
A check of an applicant’s credit history is reserved for roles involving fiduciary responsibilities, access to large sums of money, or high-level executive positions. HR does not receive the applicant’s credit score. Instead, the report reveals underlying financial stability and responsibility, such as bankruptcies, significant collections accounts, and a history of late payments. This information may indicate an applicant’s level of personal responsibility or susceptibility to financial pressure.
Motor Vehicle Records (MVR)
Motor Vehicle Records checks are mandatory for any position where driving is an essential function, such as delivery drivers or employees who regularly operate company vehicles. The MVR report, obtained from the state Department of Motor Vehicles, details the applicant’s driving behavior. HR reviews the report for active license status, major violations like Driving Under the Influence (DUI), and patterns of excessive minor infractions that suggest unacceptable risk.
Assessing Red Flags and Making Hiring Decisions
HR’s final step involves synthesizing all information to determine if any findings constitute a “red flag” that would disqualify the applicant. Red flags are significant inconsistencies between the application and the report, such as falsified employment dates, non-disclosed convictions, or financial mismanagement for a sensitive role. The decision-making process is guided by job-relatedness and business necessity, ensuring any negative finding is directly relevant to the applicant’s ability to perform the duties safely.
If HR determines a negative finding warrants rescinding a job offer, they must initiate the two-step adverse action process mandated by the FCRA. The first step involves sending a pre-adverse action notice, which includes a copy of the background report and a summary of the applicant’s rights. This notice gives the applicant time, typically five business days, to review the information and dispute any errors with the Consumer Reporting Agency. Only after this waiting period can HR send the final adverse action notice, formally communicating the decision to withdraw the conditional offer.
Your Rights During the Background Check Process
Applicants maintain specific rights that allow them to monitor and challenge the information used in the hiring decision. You have the right to receive a copy of the background check report and a summary of your rights under the FCRA whenever an employer uses a Consumer Reporting Agency for screening. This notification is mandated even if the report contains no negative information.
The ability to dispute any inaccurate or incomplete information directly with the Consumer Reporting Agency is a primary right. If an error is identified, the agency is legally required to conduct a reinvestigation, typically completing it within 30 days. Being proactive and transparent with a hiring manager about minor, explainable issues found on the report can be beneficial. You are also entitled to a second free copy of the report if an employer uses it to make an adverse hiring decision against you.