How to Conduct Employment Background Checks: The Complete Guide

With the vast majority of employers using one or more types of employment background checks, it’s important to know how to run a background check on someone for employment to help ensure the process for decision-making is both fair and compliant with the law. Here's what you should know.

An employment background check is the process of searching public records and databases, and accessing other sources, to gather and verify information about an individual. The information reported in a background check will vary depending on the purpose of the screening, but can help you learn more about a candidate’s professional and personal history beyond their job application or resume. Conducting a background check for employment helps evaluate a candidate’s qualifications, make more informed hiring decisions, and mitigate risk. When hiring for regulated positions, it may be necessary to conduct an employment background check to comply with federal, state, or local laws.

Employers may run background checks for a number of reasons, including confirming candidate eligibility and qualifications, fostering customer and public trust, promoting workplace safety, and complying with laws and regulations. Conducting a pre-employment background check is often a standard part of the hiring process. In fact, 95% of employers with at least one US location conduct one or more types of employee background checks. Here’s a closer look at the reasons why.

For some roles, certain education, training, experience, or credentials may be necessary to carry out the assigned duties proficiently. Background checks can help you determine whether candidates possess the qualifications necessary for success.

Conducting employment background checks may help maintain workplace safety by identifying elements of candidates’ backgrounds that are of concern. In addition, background checks can help protect both clients and the general public.

Unethical behavior or criminal activity among employees can expose your organization to risk. Employee criminal background checks can help give you a clearer picture of candidates’ history to help manage these risks.

Federal, state, and local laws may require background checks when hiring for certain positions. Additionally, certain industries or sensitive positions may require screenings, such as criminal background checks or driving record (MVR) checks. 

The following are several laws to consider when conducting background checks for employment:

Information included in a background check depends upon the type of search conducted; federal, state, and local laws regulating background checks; and the employer’s background screening policy.

Here are some common types of employment background checks and what may be reported:

• Criminal background checks may show misdemeanor and felony convictions, arrest records, and pending criminal cases.
• Driving record (MVR) checks show license type and status, suspensions, revocations, and motor vehicle-related offenses and convictions, like DUIs.
• Employment verification reports a candidate’s prior employment, including positions held and dates of employment.
• Education verification reports schools attended, dates of attendance and any credentials or degrees the candidate earned.  
• Credit checks for employment may show open credit lines, payment history, accounts in collections, and public information including bankruptcies or tax liens. These searches are often used for managerial roles or jobs handling money.
• Civil court searches reports non-criminal court history, such as tax disputes, liens, and judgments.
• Drug testing can identify current or past use of certain prescription and illicit substances or alcohol.

Many employers choose to partner with an accredited consumer reporting agency (CRA), like Checkr. CRAs provide a single point of contact for multiple background screenings, which streamlines the process for faster, accurate results.

How far back an employment background check goes depends on your location, the candidate’s location, and the type of background screening you’re performing. In general, background checks for employment include seven years of criminal and court records, but federal and state employment laws may also impact the lookback period. 

The average turnaround time for employment background checks is three to five business days when working with a CRA. However, some database screenings, such as national criminal record searches and sex offender registry checks, may be returned in minutes. With Checkr, 89% of all criminal searches complete in one hour. The number of screenings, employer and candidate location, and how quickly you receive authorization from candidates can also impact the timing.

The process of conducting a background check generally includes six steps: 

1. Create a background check policy
2. Maintain legal compliance
3. Choose a background check company
4. Communicate candidate rights
5. Select screening reports
6. Make hiring decisions

Here’s a step-by-step guide on how to run a background check on someone for employment:

A background check policy provides a clear framework for searching a candidate’s background during the hiring process. It  helps ensure consistency and compliance with federal, state, and local laws. Your policy should clearly state the types of screenings conducted for each position, outline the proper procedures for performing them, and explain how the results will be used in making hiring decisions.

It’s best practice to implement background screenings across your entire organization. For example, employers shouldn’t choose a certain age group or ethnicity to undergo pre-employment background checks as this could be considered discriminatory under Equal Employment Opportunity Commission (EEOC) guidelines. However, you could require specific screenings for all candidates being considered for certain roles, such as those who will drive a company vehicle or handle finances.

Federal, state, and local laws regulate employment background checks to ensure a fair hiring process for candidates. These background check laws can impact when and what screenings can be conducted and how the results may be used in hiring decisions. To help navigate compliance, employers often partner with employment background check companies, like Checkr. Regardless of how you choose to conduct background checks, employers are ultimately responsible for compliance with all applicable laws. 

Employers have many options to consider when selecting a background check company. The best background check service for your company will depend on your business needs, such as types of screening options, hiring volume, budget, and location. Additional considerations when comparing employee background check companies may include:

There are many types of background screenings that provide different insight into a candidate’s history. Based on your business needs and company background check policy, you’ll want to select the appropriate searches. 

The FCRA provides protections for candidates that cover what kind of information can be collected and reported as part of a background check for employment. The standard Summary of Rights document outlines other major rights under the FCRA, including the right to a copy of their background check results and the right to dispute inaccurate information.

When employers use a screening provider to conduct searches, you are required to disclose your intent to run an employment background check, obtain written authorization from the candidate, and follow the adverse action process if the results will affect your hiring decision.

Once you have reviewed the results, you can make a hiring decision based on your company’s background check policy. If a search returns any information that may negatively impact your hiring decision, you must follow the adverse action process outlined in the FCRA. The process is three steps:

Yes, you can run a background check on yourself by purchasing a background check from a third-party provider, like Checkr, or by requesting and compiling the information on your own through local law enforcement agencies or courthouses. Reviewing your record can help you see what employers might see when performing a background screening so you know what to expect. In addition, ordering a personal background check gives you an opportunity to anticipate questions or dispute any inaccuracies. 

With Checkr, the process for how to run a background check on yourself is straightforward and only takes a few minutes as you can easily request and view your results online. This personal background check can include an SSN trace, sex offender registry check, global watchlist search, criminal and civil searches, and driving records.

For employers, running background checks can strengthen compliance efforts and help make confident hiring decisions. If you’re a job candidate, understanding the background check process and running a check on yourself can help you prepare for your job search. Individuals and companies of all sizes trust Checkr for comprehensive background checks.

Our advanced platform makes it easy to manage the background check process by reducing time, human error, and potential bias for faster, fairer hiring. Plus, our built-in compliance workflows not only support fair hiring, but enable HR teams to optimize their talent pool. Whether you’re a small business or large enterprise organization, Checkr screenings are easy to order with transparent pricing. Get started today.

About the author

Hayley Harrison writes about a wide range of business topics and best practices, including background checks, candidate experience, and recruitment and retention. Her work includes educational articles, e-books, and blog posts.