The process of applying for a new job often culminates in an employment background check, a standard procedure used by organizations across various industries. This screening mechanism is designed to provide employers with a comprehensive review of a candidate’s past commercial, legal, and professional history. The objective is to verify the information provided on an application and assess the candidate’s overall suitability for the specific responsibilities of the role.
The Legal Foundation of Employment Screening
The entire framework for employment screening in the United States is governed primarily by the Fair Credit Reporting Act (FCRA), a federal law originally enacted to promote the accuracy and privacy of consumer information. This legislation dictates the strict rules employers must follow when they hire a third-party Consumer Reporting Agency (CRA) to perform a check on a prospective employee. A primary requirement under the FCRA is that the employer must first obtain clear, written consent from the job applicant before initiating any screening process.
The FCRA also establishes specific procedures for when an employer intends to use information found in the report to make a negative hiring decision. This process, known as “adverse action,” requires the employer to first provide the applicant with a pre-adverse action notice, which includes a copy of the report and a summary of their rights. This initial step grants the applicant a reasonable period to review the data, dispute any inaccuracies, or provide an explanation for the findings before a final decision is made. Only after this waiting period has passed can the employer issue the final adverse action notice, formally communicating the decision not to hire based on the contents of the background check.
Core Components of the Standard Background Check
Criminal History Records
Criminal history checks are common, covering records from county, state, and federal levels. These checks typically focus on conviction records, detailing cases where a person was found guilty or entered a plea of guilt. While convictions generally have no time limit for reporting, the use of arrest records that did not lead to a conviction is often restricted by state and local laws. Employers must consider the nature and gravity of the offense, the time passed, and the relevance of the crime to the specific job duties before making a hiring decision.
Employment Verification
Employment verification confirms the professional history an applicant presents on their resume. The screening agency contacts previous employers to verify key details such as dates of employment, job titles held, and sometimes the reason for separation. This check focuses strictly on objective, factual data, differing significantly from a subjective reference check. Verification helps companies protect themselves from applicants who misrepresent their work experience or job tenure.
Education Verification
Education verification confirms academic credentials by contacting the institutions listed by the candidate, from high schools to universities. The agency confirms details such as dates of attendance, the type of degree or certificate earned, and the major of study. This step is important for roles requiring specialized knowledge or a specific level of academic achievement.
Driving Records (MVR)
Motor Vehicle Records (MVR) checks are used only when the job requires the regular operation of a vehicle for business purposes, such as in sales or delivery roles. This check pulls information directly from the state’s Department of Motor Vehicles, revealing the applicant’s current license status, expiration date, and any restrictions. The MVR also details any history of moving violations, including speeding tickets or DUI convictions, and any record of accidents. Employers use this information to assess risk and confirm the candidate is insurable under company policies.
Specialized Checks for Specific Roles
Credit History Reports
Some positions require specialized screening, such as a credit history report. This check is strictly regulated under the FCRA and usually restricted to roles involving financial oversight, access to large sums of money, high-level executive positions, or security clearance. The report provides details on payment history, outstanding debts, and public records like bankruptcies, but generally omits the credit score itself.
Professional Licenses and Certifications
Verification of professional licenses and certifications applies to fields like medicine, law, or finance. The screening agency confirms that the applicant holds the necessary, active credentials issued by relevant governing bodies, such as state medical boards or bar associations. This verification ensures the candidate is legally permitted to practice in their specialized field and that their license is current and in good standing, without disciplinary actions or suspensions.
Understanding Data Age Limitations
The FCRA imposes specific limitations on how far back a Consumer Reporting Agency can report certain types of information to a prospective employer. Generally, there is a seven-year reporting limitation for non-conviction public record data, which includes civil suits, civil judgments, and paid tax liens. This rule is designed to prevent older financial or civil issues from indefinitely hindering a person’s employment prospects. However, this seven-year restriction does not apply universally across all data points collected during a background check.
Criminal conviction records are a major exception to this rule, as most federal and state laws permit them to be reported indefinitely. The seven-year reporting restriction also often does not apply to jobs that have an annual salary above a certain threshold, which is commonly set at $75,000 or $125,000, depending on the state. The reporting period for certain items can vary widely based on the state where the search is conducted and the salary of the position being sought.
Information Employers Cannot Legally Use
Federal and state laws explicitly prohibit employers from using certain categories of personal information when making hiring decisions. This includes protected characteristics such as race, religion, national origin, age, sexual orientation, and marital status, as defined under Title VII of the Civil Rights Act. Employers are also generally barred from considering medical history, genetic information, or past workers’ compensation claims, which are protected under separate legislation like the Americans with Disabilities Act.
While bankruptcy filings may show up on a credit report, their use in a hiring decision is restricted in many jurisdictions, particularly for non-executive roles. Additionally, local and state “ban the box” laws have been enacted across the country to regulate when an employer can inquire about a candidate’s criminal history during the hiring process. These laws aim to delay the consideration of criminal records until later stages, ensuring that applicants are first judged on their qualifications and experience.
Preparing for Your Background Check
Job candidates can take proactive steps to ensure the background check process proceeds smoothly. Preparation involves reviewing your own public records, including obtaining a free copy of your credit report and checking court records where you have lived. This allows you to identify and dispute any significant inaccuracies before they are seen by an employer. It is also beneficial to ensure complete and accurate data is reflected on your application materials, particularly the exact dates of employment and educational institutions.
Candidates should anticipate that any discrepancies between their application and the official records will likely be flagged. If past issues may appear in the report, such as an employment gap or a minor conviction, preparing a truthful and concise explanation in advance is advisable. Transparency and honesty are generally viewed more favorably by prospective employers than discovering a significant omission or misrepresentation during the formal screening process.