Should you run a background check before or after a job offer?

You’ve found your candidate. Do you run a background check on them now, or make the offer first and screen after? Most small businesses never actually decide—whatever they did on the first hire just becomes “how we do it,” law or logic aside.

Deciding when to run a background check in your hiring process can affect how quickly you can extend an offer, how many candidates you screen, and how much you spend.

There are legal considerations, too. Some state and local laws restrict when employers can inquire into or consider a candidate’s criminal history, including by requiring employers to wait until after a conditional offer has been made.

If you’re deciding when to run a background check in the hiring process, consider two common approaches.

Neither approach is right for every role. What’s more important is being clear about what information you need before making an offer, what can wait until you’ve selected your preferred candidate, and what timing rules apply where you’re hiring. Once you have those answers, you can establish a consistent sequence rather than deciding when to screen on a case-by-case basis.

If you use a background check provider to screen candidates, the Fair Credit Reporting Act (FCRA) applies regardless of which approach you choose. You must provide the candidate with a clear, written disclosure in a standalone format and obtain written authorization before running the check. If information in the report may lead you to take adverse action based on that information, you must follow the applicable pre-adverse and adverse action requirements.

The main advantage of screening before an offer is that you can resolve certain questions before extending one. If the screening identifies information that affects the hiring decision, you haven’t yet made a conditional offer that may need to be withdrawn.

Pre-offer screening may also make sense when a particular qualification is central to the job. For example, if a role requires a specific license or driving eligibility, verifying that requirement earlier in the process may prevent you from reaching the offer stage only to discover that the candidate doesn’t meet a basic requirement.

The question is whether you actually need that information before making the offer. If you don’t, screening at this stage can add time between selecting your preferred candidate and extending the offer. And if you screen multiple finalists, your screening costs can increase.

From the candidate’s perspective, there’s a cost too. They have to hand over personal details and authorize a check without knowing whether they’re the clear choice, or just one of several people still in the running.

A conditional offer background check puts the offer first. You make the offer in writing, clearly state that it depends on the screening results, and once the candidate accepts the offer and authorizes the check, you run the screening.

Here, speed and cost work in your favor.

For a small business hiring only occasionally, this can make the process simpler to manage and less expensive.

One drawback is that if you withdraw a conditional offer, the candidate may have already given notice or turned down another opportunity, which could put them in a difficult position. You may also need to return to other candidates or restart the search.

State and local fair chance hiring laws can restrict when employers may ask about or consider a candidate’s criminal history. In some jurisdictions, employers must wait until after making a conditional offer.

California’s Fair Chance Act, which generally applies to employers with five or more employees, is one example. It generally prohibits employers from asking about or considering an applicant’s conviction history before making a conditional job offer. When a specific background check timing law applies, it may determine when certain screenings or inquiries can occur.

Where you hire can affect which rules apply, so don’t assume that the laws governing screening are determined solely by where your business is headquartered. Requirements can vary by state and locality, and some laws apply differently depending on the employer, job, or circumstances.

California’s Civil Rights Department provides guidance on the Fair Chance Act, and the US Equal Employment Opportunity Commission (EEOC) and the Federal Trade Commission (FTC) publish joint guidance covering federal nondiscrimination and FCRA obligations.

Start with the law. Before deciding when to screen, determine whether federal, state, or local requirements affect the timing of the checks you plan to run. Where the law dictates the sequence, follow it.

Next, identify which background checks you actually need, then ask for them only when you genuinely need that information. If you must verify a qualification before making an offer, determine whether you can legally and appropriately check it earlier. If you don’t need the information until you’ve selected your preferred candidate, a conditional offer followed by screening may keep the earlier stages of hiring moving.

Whichever sequence you use, make it repeatable. Build the timing into your hiring process so your team knows when to extend the offer, when to initiate screening, and what happens next. A standardized workflow can also help you hire as quickly as possible without increasing risk.

Then revisit the process when you add a new role type, begin hiring in a new location, or change your screening requirements. The right sequence isn’t simply “background check before or after job offer.” It’s the sequence that reflects applicable requirements, the role’s needs, and a consistent process your team can follow every time.

Hayley Harrison

Hayley Harrison began her career as a hiring manager at a mid-size regional bank in the Pittsburgh area. She now brings her experience and knowledge of hiring best practices to her work as a freelancer, helping employers refine and improve their processes.