An employment background check is a process employers use to verify the accuracy of the information a job candidate provides and to assess their suitability for a role. These screenings are conducted by third-party Consumer Reporting Agencies (CRAs) and are governed by the federal Fair Credit Reporting Act (FCRA). The goal is to provide a fact-based summary of a person’s history, ensuring a safe and compliant hiring decision. The information reported is highly regulated to protect the applicant’s privacy and ensure fairness.
Basic Identity and Address Verification
The initial phase of any screening establishes the applicant’s identity, which is foundational for all subsequent searches. A key tool is the Social Security Number (SSN) trace, which confirms the number’s validity and the state and year it was issued. This trace also generates a list of current and previous addresses associated with the applicant’s name and SSN. The address history determines the necessary jurisdictions where criminal and other public record searches must be conducted. Confirming the candidate’s identity and residential history prevents identity fraud and ensures the employer is checking the correct individual.
Verifying Employment and Academic History
Validation of a candidate’s resume claims confirms the accuracy of professional and educational credentials. The employment verification process typically contacts previous employers to confirm dates of employment and the applicant’s job title. This step is designed to catch discrepancies in the timeline or the position held, such as inflated titles or fabricated work experience.
Academic history verification confirms the degrees, certificates, or diplomas an applicant has listed. The CRA contacts the educational institutions directly to verify the dates of attendance and the specific degree conferred. This differs from a detailed reference check, which seeks qualitative information like past job performance or the reason for separation.
What Criminal History Appears on a Background Check
The criminal history check covers records from local, state, and federal court databases. Convictions for both felonies and misdemeanors almost always appear on a background report, as federal law does not impose a time limit on reporting conviction information. The nature of the crime, such as whether it relates to the job duties, is a consideration for employers.
Arrest records that did not lead to a conviction, or charges that were dismissed, are treated differently. The Fair Credit Reporting Act places a seven-year reporting limit on non-conviction information for most positions. However, many states have enacted stricter regulations, such as “Ban the Box” laws, that may restrict or prohibit the reporting of non-conviction records entirely. Pending criminal charges, meaning a case still awaiting disposition, may also be reported.
Specialized Records for Specific Roles
Certain professions require specialized checks beyond general identity and criminal history screening. For positions involving driving a company or commercial vehicle, a Motor Vehicle Record (MVR) check is required. This report details the applicant’s driving history, including license status, major traffic violations, and any history of driving under the influence (DUI) offenses.
Professional license verification is conducted for roles in regulated fields like medicine, finance, or law. This check confirms the applicant holds a current, active license and is in good standing with the relevant regulatory body. Positions involving contact with vulnerable populations, such as children or the elderly, trigger mandatory checks against specialized databases like the national Sex Offender Registry and professional exclusion lists.
Reporting Financial and Credit Information
Employment credit reports are highly restricted and are only requested for roles involving significant financial trust, access to large sums of money, or government security clearance. A full credit score is not provided to the employer, as it is irrelevant to employment suitability. The report focuses instead on financial public records and the overall management of financial obligations.
Reported financial details include public record items like bankruptcies, overdue tax liens, and collection accounts. These reports assess an applicant’s financial stability, which may be a factor for positions with fiduciary responsibilities. Laws increasingly limit or prohibit the use of credit information in hiring for most general employment positions.
Legal Limits on Reporting Old Information
The Fair Credit Reporting Act (FCRA) governs what information a Consumer Reporting Agency (CRA) can include in a background report. The FCRA enforces a seven-year reporting limit on most negative non-conviction information. This includes civil suits, civil judgments, paid tax liens, and records of arrest that did not result in a conviction.
The seven-year look-back period is calculated from the date the adverse event occurred. Conviction records are exempt from the seven-year rule and can be reported indefinitely under federal law, though many state laws impose their own time limits. The salary of the position also affects the limit; the seven-year rule does not apply to jobs with an annual salary of $75,000 or more.
How to Dispute Inaccuracies
If an employer intends to take adverse action based on the report, they must first provide you with a copy of the report and a summary of your rights under the FCRA. You have the right to dispute any information you believe is inaccurate or incomplete directly with the CRA that prepared the report. The CRA is required by law to conduct an investigation into the disputed item, typically within 30 days. It is helpful to provide supporting documentation to the CRA, such as court records or letters from past employers, to substantiate your claim.