How To Run Employment Background Checks
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Running a background check for employment is a common step in the hiring process. Employers use background checks to gather information that can help them make informed decisions about potential employees. This guide walks you through a clear, step-by-step process for running checks and making informed decisions.
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Key takeaways:
- Employment background checks verify a candidate's professional qualifications and investigate personal history using public records and databases.
- Employers use them to ensure workplace safety, verify candidates’ qualifications, and manage risk.
- Most checks look back seven years, covering criminal records, driving history, and education/employment verification.
- While some results are instant, the average turnaround time is 3 to 5 business days.
- Employers must follow FCRA guidelines, including obtaining written authorization and following adverse action processes.
Watch the video or keep reading for more.
What is an employment background check?
An employment background check is a screening process that searches public records, databases, and other sources to gather and verify information about a job candidate. It reveals details about a candidate's professional and personal history beyond what appears on their resume or application.
Employers conduct background checks to evaluate qualifications, make informed hiring decisions, and mitigate risk. For regulated positions, background checks may be legally required to comply with federal, state, or local laws.
Employers and consumer reporting agencies (CRAs) may gather records from primary sources, such as:
- County, state, and federal courts
- The Department of Motor Vehicles (DMV)
- Schools
- Past employers
- Licensing boards
- Government watchlists
Some records arrive through automated connections and databases, while many criminal background checks still involve in-person or clerk-assisted courthouse research.
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 hiring teams evaluate a candidate’s qualifications, make more informed hiring decisions, and mitigate risk.
Legal and regulatory frameworks also drive background screening. Certain roles are subject to specific requirements, such as DOT-regulated drivers or healthcare workers screened against sanctions lists.
Step-by-step guide for conducting background checks
The process of conducting a background check generally includes the following steps:
- Create a background check policy
- Maintain legal compliance
- Choose a background check company
- Select screening reports
- Communicate candidate rights
- Make hiring decisions
Here's a step-by-step guide on how to run a background check on someone for employment:
Create a background check policy
A background check policy provides a clear framework for your business to screen candidates during hiring. It helps improve consistency and compliance with federal, state, and local laws. Your policy should state the types of screenings for each position, outline procedures, and explain how results may inform hiring decisions.
It’s best practice to implement background screening across your entire organization or consistently across certain roles. For example, employers shouldn’t choose a certain age group or ethnicity to undergo pre-employment background checks, since this is often considered discriminatory under guidelines from the Equal Employment Opportunity Commission (EEOC). However, you can require specific screenings for all candidates being considered for certain roles, such as those who will drive a company vehicle or handle finances.
Maintain legal compliance
Federal, state, and local laws regulate when screenings can be conducted and how results may be used.
The following are several laws to consider when conducting background checks for employment:
- Fair Credit Reporting Act (FCRA) is a federal law that requires employers to provide appropriate disclosure and request consent prior to conducting a background check. The FCRA also outlines the adverse action process.
- Equal Employment Opportunity Commission (EEOC) guidance recommends against adopting blanket policies against hiring someone simply because they have a criminal history. Exceptions exist if other regulations prohibit the individual from holding the job in question or the offense is related to the role.
- Title VII of the Civil Rights Act of 1964, enforced by the EEOC, prohibits employers from discriminating against candidates based on race, color, religion, sex, or national origin.
- Ban the Box laws, also known as fair hiring laws, remove questions from job applications about criminal history (arrests and convictions), and may also affect the timing of when employers can request a background check. Currently, over 180 states, cities, and counties enforce such laws.
To help navigate compliance, employers often partner with third-party background check providers, like Checkr. Regardless of your approach, employers remain ultimately responsible for complying with all applicable background check laws.
Choose a background check provider
The best background check service for your company depends on your screening needs, hiring volume, budget, and location. Key points to consider when comparing providers include:
- Advanced technology to increase data accuracy and speed turnaround times for more efficient hiring.
- Positive candidate experience with a mobile-first portal and forms, dedicated support team, and timely updates throughout the process.
- Integrations with ATS or HRIS platforms to streamline the hiring process by launching background checks from within your existing workflow.
- Built-in compliance features to support fair hiring and simplify the complex web of legal requirements for employers.
Select screening reports
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.
- Criminal background checks may show misdemeanor and felony convictions, arrest records, and pending criminal cases.
- Driving record (MVR) checks may 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 report 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.
- Professional license verification reviews licenses and certifications for highly regulated industries or specialized roles, such as accounting and healthcare.
- Sanctions searches scour primary sources for exclusions, debarments, sanctions, and disciplinary action taken against individuals in sensitive fields, such as healthcare.
- International background checks to search for criminal records, adverse media, and global watchlists for candidates who have lived, studied, or worked outside of the US.
Communicate candidate rights
The FCRA governs what may be collected and reported in employment background checks and protects candidates. The required Summary of Rights explains how to access their report and dispute inaccuracies.
When using a screening provider, you must disclose your intent to run a background check, obtain the candidate's written authorization, and follow the FCRA adverse action process before taking action based on the results.
Make hiring decisions
Once you've reviewed results, make a hiring decision based on your background check policy. If any findings may negatively impact your decision, you must follow the adverse action process outlined in the FCRA:
Step | Action | Requirements |
1 | Send pre-adverse action notice | Include a copy of the background check report and Summary of Rights under FCRA |
2 | Wait for candidate response | Allow reasonable time (typically 5 days) for disputes or context via individualized assessment |
3 | Issue final adverse action notice | Explain decision and inform candidate of right to dispute and request another report within 60 days |
Start running employment background checks with Checkr
Running background checks strengthens compliance efforts and supports confident hiring decisions. Companies of all sizes trust Checkr for comprehensive background checks.
Our advanced platform reduces turnaround time, human error, and potential bias for faster, fairer hiring. Built-in compliance workflows help HR teams stay compliant while optimizing their talent pool.Get started with transparent pricing today.
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Frequently asked questions
Do I need a candidate’s permission to run a background check?
Yes. Under the FCRA, employers must provide a clear disclosure and obtain written authorization before conducting a background check through a consumer reporting agency. Some states and localities may have additional requirements.
When should I run a background check during the hiring process?
Many employers conduct background checks after extending a conditional offer of employment. Timing may vary depending on company policy and applicable state or local laws, including Ban the Box regulations that mandate when employers may screen candidates.
How long does it take to complete a background check?
The timeline can vary based on the type of screening and the jurisdictions involved, but many background checks are completed within a few days.
Disclaimer
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.
