Background check services for tech companies

Tech companies are consistently at the forefront of innovation, and tech employers should approach their hiring and background check processes with the same mindset. Let's take a look at why technology companies should run background checks, what to look for, how long screenings take, and what laws may apply.

In today's competitive tech industry, companies face the daunting task of finding the most qualified individuals to join their teams. To make informed hiring decisions, these employers often rely on thorough background screenings as a crucial step in their recruitment process.

One primary reason for conducting tech company background checks is to verify candidates' qualifications and experience. Tech employers seek individuals with the necessary skills, certifications, and educational background to excel in their specialized roles. These checks help validate the information provided by candidates, allowing companies to make well-informed hiring decisions based on accurate credentials.

Additionally, tech companies may utilize employee background checks to identify any relevant history that may impact employment eligibility. This includes reviewing criminal records, credit history, and any other pertinent information that could affect the candidate's ability to perform their duties effectively and ethically. By conducting these checks, employers may reduce potential risks and ensure that their employees meet the necessary standards for their positions.

Compliance with laws and regulations may also influence tech employers' decision to conduct pre-employment screenings, particularly for positions that handle sensitive data or finances. Conducting thorough background checks may help companies mitigate potential liabilities or reputational damage resulting from non-compliance.

Tech companies often look for criminal history, employment history, educational background, credit history (for finance positions), and civil court history (for senior leadership) in a background check. Which screenings a specific employer conducts may depend on company policy, the specific position, and legal requirements.

Here's what may show up on these common background screenings:

The time it takes to complete a background check in the technology industry can vary depending on several factors, including the specific checks that are being conducted, the scope and volume of checks, and whether you work with a background check service or conduct checks yourself.

Conducting checks yourself—as opposed to working with a background check service—can also extend the amount of time it takes to complete screenings, especially if you hire at scale or conduct multiple types of screenings for each candidate. Your team will need to manage ordering each type of report, requesting criminal records from courthouses, following up with agencies or institutions, communicating with the candidate, and managing secure document storage once the information is received.

When employers work with a background check provider, like Checkr, they can offload many time-consuming manual tasks in favor of a streamlined process accessed through one centralized dashboard. Checkr's advanced data technology automates information retrieval and delivers easy-to-read reports that keep your candidates on track to their first day.

In the technology industry, the time period covered by background checks can vary depending on the specific role, type of screening, and compliance requirements. Many checks will cover at least a few years of recent history.

There are no legal limits on education or employment verification, so employers may look as far back as they choose to confirm professional qualifications. Other common types of screening for tech professionals—criminal record checks, credit checks, and civil court checks—may be restricted to a limited lookback period based on federal or state legislation.

The Fair Credit Reporting Act (FCRA) restricts the use of certain types of information in employment-related decisions for employers who work with a consumer reporting agency (CRA), like Checkr, to conduct background checks. Under the FCRA, background checks that include civil matters like accounts in collection, paid tax liens, and civil lawsuits can only go back seven years. Bankruptcies, on the other hand, can be reported as far back as ten years. The FCRA does not limit reporting for criminal convictions. Additionally, FCRA lookback periods may not apply to jobs with an expected salary of over $75,000 or when employers conduct background checks themselves.

Technology companies must adhere to local, state, and federal hiring laws when conducting background checks on potential employees. Here are a few types of laws to look out for.

The FCRA is the primary federal law governing employment background checks conducted in partnership with a CRA. This law requires employers to obtain written consent from candidates before conducting background checks, and follow the adverse action process should they decide not to offer a candidate a job due to information shown in a background check.

Many states and local jurisdictions have enacted Ban the Box laws, which generally restrict when an employer can inquire about a candidate's criminal record, among other provisions. These laws aim to protect candidates' privacy and limit discrimination in hiring. Employers may wish to consult with legal counsel to understand if any Ban the Box laws apply to their organization.

Tech companies that run credit history checks on candidates should be mindful of credit history regulations. FCRA restrictions apply to credit checks for employment, and additional state or local laws may place additional restrictions on how and when an employer can use credit history information in the hiring process.

Technology employee background checks are used by many high-performing companies to make more informed hiring decisions. Tech employers that partner with a trusted background check service, like Checkr, often benefit from faster turnaround times, a streamlined candidate experience, and more accurate results. Plus, Checkr’s 100+ ATS integrations and flexible API let you seamlessly align background checks with your existing talent acquisition tech stack. Win more top talent and outshine competitors—get started with Checkr now.

The resources provided here are for educational purposes only and do not constitute legal advice. We advise you to consult your own counsel if you have legal questions related to your specific practices and compliance with applicable laws.