A job background check serves the important purpose of verifying the claims a candidate makes about their suitability for a role and their professional history. These checks are a standard part of the hiring process, confirming the information provided on resumes and applications. The scope of a background check is not uniform, varying significantly based on the industry, the position level, and the specific duties involved (e.g., handling sensitive financial data or operating a company vehicle). A retail position may involve a basic criminal record search, while a finance or government role requires a more comprehensive review.
The Legal Rules Governing Background Checks
The process of conducting a background check is strictly regulated by the federal Fair Credit Reporting Act (FCRA), which establishes a national standard for checks performed by third-party screening companies. The FCRA grants job applicants specific rights, including the mandatory requirement of explicit written consent before an employer can initiate the process. This consent must be obtained through a clear and conspicuous disclosure that stands alone and is not buried within other application documents.
If an employer intends to deny employment based on information found in the report, they must first notify the candidate. This allows the applicant the opportunity to review the information and dispute any inaccuracies with the consumer reporting agency. Beyond the federal framework, many states and localities have implemented additional protections, such as “Ban the Box” laws, which restrict when an employer can inquire about an applicant’s criminal history.
Verification of Professional Credentials
Employment History
Employers use background checks to verify the core claims an applicant makes about their work experience. The screening process confirms the applicant’s stated dates of employment and the job titles held at former companies. This verification ensures that the duration and level of experience align with the information presented in the application materials.
While some employers may attempt to obtain salary details or reasons for departure, many former companies limit the information they release to only dates and titles to mitigate potential liability concerns. Verification often relies on direct contact with the previous employer’s Human Resources department or a third-party employment verification service.
Educational Degrees and Licenses
Academic qualifications are verified to confirm that a candidate possesses the degrees, certifications, and professional licenses necessary for the job. Screening companies contact educational institutions directly or utilize services like the National Student Clearinghouse to confirm the dates of attendance and the degree or certification conferred.
For roles requiring a specific professional certification or license, such as in law, medicine, or finance, the screening company checks directly with the relevant state or national licensing board. These checks confirm that the license is active, in good standing, and has not been subjected to disciplinary action. Verification of credentials aims to prevent hiring based on fraudulent qualifications.
Scope of Criminal History Records
A criminal history check typically reviews records for felony and misdemeanor convictions across county, state, and national databases. Distinguishing between arrests and convictions is important, as an arrest that did not lead to a conviction should generally not appear on the final report. The FCRA establishes a seven-year look-back period for adverse non-conviction data, such as civil suits and records of arrest, for jobs paying below a certain salary threshold.
Criminal convictions, which are considered public record, can generally be reported indefinitely, although some state laws may impose a seven-year limit on reporting older convictions. Pending criminal cases, regardless of their age, are often reported because they represent an ongoing legal matter. Any criminal record that has been sealed or legally expunged by a court order should not be disclosed in a background check report.
Financial and Driving Records
Specialized checks for financial and driving records are typically conducted only when the job duties necessitate them. A credit report for employment purposes is a modified version of a consumer credit report, permissible only for positions involving significant financial responsibility, handling company cash, or high-level executive roles. This report focuses on financial stability indicators, such as bill payment history, outstanding debts, and records of bankruptcy, but it does not provide the employer with a credit score.
Motor Vehicle Records (MVR) checks are performed for applicants whose jobs require driving, such as delivery personnel or sales representatives who use a company car. The MVR provides information on the applicant’s license status, including any suspensions or revocations, and details of traffic violations or accidents. These checks help the employer assess the risk associated with allowing the candidate to operate a vehicle for business purposes.
Digital Footprint and Non-Traditional Screening
In addition to searching formal records, employers may sometimes conduct a review of a candidate’s public digital footprint, including social media and other internet activity. While this practice is not prohibited, employers must ensure they adhere to federal and state anti-discrimination laws. To mitigate the risk of inadvertently viewing and using information related to a protected class, many companies use third-party screeners who filter the reports to show only job-relevant conduct.
Non-traditional screenings, such as drug testing and medical examinations, are also used for certain roles. Drug tests are typically not considered medical examinations under the Americans with Disabilities Act (ADA) and can be performed post-offer. Medical screenings, such as physicals for safety-sensitive roles, are usually conducted only after a conditional offer of employment has been extended, aligning with ADA regulations that limit pre-offer medical inquiries.
Information That Does Not Appear
Certain categories of personal information are legally protected and excluded from background check reports provided to employers:
Information related to protected class status, including race, religion, age, national origin, and marital status.
An applicant’s full consumer credit score, such as their FICO or VantageScore.
Bankruptcy records older than ten years.
Most other adverse civil or non-conviction records older than seven years.
Medical history, aside from limited, job-related inquiries permitted after a conditional offer is extended.
What to Do If Errors Are Found
If an employer intends to take an adverse action based on information contained in a background check, the FCRA mandates a specific process known as “pre-adverse action.” The employer must first provide the candidate with a notice of their intent, along with a copy of the background report and a summary of their rights under the FCRA. This initial notification is designed to give the candidate an opportunity to review the documents and identify any potential errors.
The applicant then has a reasonable period, often interpreted as at least five business days, to contact the consumer reporting agency and dispute any inaccurate or incomplete information. If the candidate successfully disputes the information, the agency must reinvestigate and correct the report. If the employer still decides to move forward with the adverse action, they must then send a final notice to the candidate.