An employer background check is a common practice for organizations evaluating a job candidate’s suitability before extending an offer of employment. This standardized screening process verifies the accuracy of claims made on an application and assesses potential risks associated with a new hire. Understanding what data employers are legally permitted to access is paramount for navigating the contemporary hiring process effectively.
The Legal Rules Governing Background Checks
The regulation of employment screening is primarily governed at the federal level by the Fair Credit Reporting Act (FCRA). This law dictates how consumer reporting agencies (CRAs) collect, utilize, and distribute consumer information for employment purposes. The FCRA grants job applicants specific rights, requiring employers to provide advance written notice and obtain separate written consent before initiating any background investigation.
If an employer decides to deny employment based on the report’s findings, the adverse action process applies. Before making a final decision, the employer must provide the candidate with a copy of the report and a “pre-adverse action” notice. This allows the candidate time to dispute any inaccuracies. While the FCRA sets the national baseline, many state and local jurisdictions impose additional restrictions, often providing job seekers greater protections.
Standard Components of an Employment Screening
Social Security Number Trace and Identity Verification
The screening process typically begins with a Social Security Number (SSN) trace. This trace uses the applicant’s SSN, name, and date of birth to cross-reference data from credit bureaus and other commercial records. The primary function of the SSN trace is to identify all current and former addresses, names, and jurisdictions where the candidate has lived and potentially worked. This identity verification establishes the geographic scope for subsequent criminal history searches.
Criminal History Checks
A thorough criminal history check involves searching records across multiple jurisdictional levels to uncover past convictions. Screenings generally target county courts, which hold the most up-to-date and complete records for misdemeanor and felony cases. The search often expands to include state repositories and federal district court records, covering offenses like bank fraud or drug trafficking that fall under federal law.
Employers primarily focus on finding records of convictions. Pending cases, where a charge has been filed but a final disposition has not been reached, may also appear on a report. The search differentiates between lower-level misdemeanors and more serious felonies, providing specific details like the date of disposition and the sentence imposed.
Employment Verification
Employment verification confirms the professional history listed on the application to ensure the candidate has accurately represented their work experience. This process contacts previous employers or utilizes commercial databases containing payroll and employment data. The verification generally confirms the dates of employment, the job title held, and sometimes the final salary or wage rate.
The depth of detail provided by a former employer varies based on their internal policies. While basic information is confirmed, subjective assessments, such as performance reviews or opinions about work quality, are rarely included in the formal report.
Education Verification
Education verification validates the academic credentials claimed by the applicant. This check contacts the specific high schools, colleges, or universities listed on the application. The purpose is to confirm the institution attended, the dates of attendance, and the specific degree or certification earned. This process helps organizations prevent misrepresentation of academic background. Verification usually involves direct contact with the school’s registrar or a third-party verification service utilized by the educational institution.
Specialized Checks Required for Certain Jobs
Beyond the standard components, certain roles require specialized screenings tailored to the job’s responsibilities.
Credit History Checks
Credit history checks are typically reserved for positions involving fiduciary responsibility, access to large sums of money, or high-level executive functions. Many states restrict the use of credit reports for general employment decisions. When permitted, the employer receives a report detailing payment history, outstanding debt load, and public records such as bankruptcies or tax liens. The employer is usually provided with a modified version of the report that excludes the specific credit score, focusing instead on underlying financial behaviors.
Motor Vehicle Records (MVR)
Jobs involving regular driving, such as delivery or transportation services, necessitate a Motor Vehicle Records (MVR) check. This report retrieves information from the state department of motor vehicles regarding the applicant’s current license status, driving violations, and a history of reported accidents. Maintaining a clean driving record is a prerequisite for these roles.
Drug and Health Screenings
Drug and health screenings are often conducted concurrently with the background check, particularly for safety-sensitive or federally regulated industries. Although these are separate medical evaluations, they form part of the comprehensive assessment of a candidate’s fitness for duty and ensure compliance with workplace safety standards.
Understanding Reporting Limitations and Time Spans
A frequent question regarding background checks concerns how long information remains reportable. Under the FCRA, most non-conviction records are subject to a seven-year reporting limitation. This includes civil suits, civil judgments, records of arrest that did not lead to a conviction, tax liens, and collection accounts. Once seven years have passed from the date of disposition, these items must generally be excluded from the report.
Records of criminal convictions are not subject to the seven-year federal reporting rule; federal law allows convictions to be reported indefinitely. However, some states have enacted laws restricting how far back convictions can be considered. Furthermore, the seven-year limitation often does not apply to positions with an annual salary above a certain threshold, historically set at $75,000.
Information That Cannot Be Included or Used
Certain categories of information are legally protected or prohibited from being included in a consumer report for employment decisions. Federal and state anti-discrimination laws prohibit the use of information related to protected characteristics, such as race, religion, gender, medical history, or national origin. These details are screened out and cannot be used as a basis for employment decisions.
Records that have been sealed, expunged, or legally set aside by a court order are also typically excluded. Additionally, records of bankruptcy older than ten years are prohibited from being reported to prospective employers, providing a clear cutoff for considering past financial distress.
Steps to Take If Your Report Has Errors
Job seekers should proactively ensure the accuracy of their reported information before applying for a position. Reviewing personal records, such as driving abstracts and credit reports, allows individuals to identify and correct potential errors early. If a background check report contains inaccurate or incomplete information, the job seeker has a right to dispute the findings.
The dispute must be lodged directly with the Consumer Reporting Agency (CRA) that prepared the report. The CRA is legally responsible for conducting a reinvestigation, contacting the original source, and correcting or removing any inaccurate data, typically within 30 days of the dispute.