How To Run Employment Background Checks

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:

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.

The process of conducting a background check generally includes the following steps:

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

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:

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.

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:

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 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.

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:

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.

Yes. Under the Fair Credit Reporting Act (FCRA), employers must provide a clear disclosure and get written consent from the candidate to run a background check through a consumer reporting agency. This means you cannot run a background check without the candidate's knowledge and consent. The disclosure must be a standalone document that clearly states your intent to obtain a background report. Some states and localities have additional requirements, such as specific language that must be included in the disclosure or authorization forms. It's important that your background check process complies with both federal law and any applicable state or local regulations before you start screening.

Many employers conduct background checks after extending a conditional offer of employment to a candidate. This approach helps streamline the hiring process and reduces unnecessary screening costs for candidates who won't receive an offer. However, the timing of a background check can vary depending on your company’s policy and applicable state or local laws. Ban the Box regulations in many jurisdictions restrict when employers can ask about criminal history or conduct criminal background checks. Often, these laws don’t allow an employer to run any background checks until they’ve made a conditional job offer to a candidate. Some industries with specific regulatory requirements may need to conduct background checks earlier in the process. Review your local laws and consult with legal counsel if needed to determine the appropriate timing for your organization to run checks.

The timeline for running a background check is based on several factors, including the type of screening, the jurisdictions you’re searching, and the availability of records. Many background checks are completed within 3 to 5 business days. Some searches, like national criminal database checks or employment verification, might return results within hours or days. However, county-level criminal searches that require in-person courthouse research can take more time, especially in jurisdictions with limited digital access or backlogs. International background checks also typically need more time, due to varying record-keeping systems and procedures across different countries. Using a modern background check provider with advanced technology and extensive data connections can help reduce turnaround times.

Most employment background checks look back seven years, which is the standard reporting period under the FCRA for most types of records, including criminal convictions, civil judgments, and tax liens. However, there are some exceptions to this rule. Certain serious crimes may be reported beyond seven years, and some states have their own laws that may extend or limit the lookback period. For positions with salaries exceeding $75,000 annually, the seven-year limitation may not apply, with states creating further variations. Additionally, some industries with specific regulatory requirements, like healthcare, may mandate longer lookback periods. Employment and education verification typically covers the timeframes that the candidate provides on their application, such as a college degree earned over a four-year period.

Yes. Running a background check on yourself is a good way to see what potential employers might learn during their screening process. You can order a personal background check through background screening providers, like Checkr, or you can request records directly from state agencies, courts, or law enforcement. Many background check providers allow you to download a copy of your report for your records.

Reviewing your own background check helps you identify any inaccuracies or outdated information that needs to be corrected before applying for jobs. If you find errors, you have the right to dispute them with the reporting agency. This proactive approach gives you the opportunity to address any concerns and prepare explanations for legitimate findings before they come up during the hiring process.

To run a background check on a job candidate, employers must first provide written disclosure of their intent to run the check and obtain written permission from the candidate before ordering a report from a consumer reporting agency. The disclosure should be a standalone document that clearly states your intent to obtain a background check.

Once you receive the candidate’s signed authorization, select the appropriate screenings based on the role and your business’s background check policy. This might include criminal records, employment verification, education verification, or driving records. After you receive the results, review them according to your policy and the FCRA’s requirements. If the results may negatively impact your hiring decision, you must follow the adverse action process, which includes providing the candidate with a pre-adverse action notice, giving sufficient time for them to respond, and issuing a final adverse action notice if you decide not to hire them.

What appears on an employment background check depends on the types of screenings you order and the candidate's history:

The specific information that’s reported will vary based on what's available in public records and databases, as well as what is permissible to report under federal and state laws.

The cost of employment background checks varies depending on the type of screening you conduct and how in-depth it needs to be. Basic criminal background checks might cost between $20 and $50, while comprehensive packages that include multiple searches can range from $50 to $200 or more per candidate.

The main factors that affect pricing include the number of jurisdictions you search, the types of verifications needed, any requirements for turnaround time, and your hiring volume. Many background check providers offer tiered pricing or volume discounts for employers who screen candidates regularly. Specialized screenings like international background checks, drug testing, or continuous monitoring typically cost more than standard searches. When you’re evaluating pricing, consider not just the price per check but also the value of features like compliance support, integrations with your existing software, and candidate communication tools.

There's no universal standard for what disqualifies a candidate from passing a background check. It really depends on the employer's background check policy, the specific role, and any applicable laws. Also, many background check providers don’t use pass-fail language, instead just providing the information that appears in the report. Common concerns include:

The Equal Employment Opportunity Commission advises against blanket disqualification policies, recommending instead that employers conduct an individualized assessment that considers the nature of the offense, how long ago it occurred, and its relevance to the position. Some roles in regulated industries implement specific legal restrictions, such as healthcare workers who can’t have certain sanctions or financial professionals who can’t have specific convictions. Ultimately, employers must balance their business’s legitimate needs with fair hiring practices and legal compliance.

Employers can only verify the employment history that candidates provide on their application or resume, by contacting the specific employers you’ve listed. Background checks don't automatically reveal every job you've held.

Some background check providers use databases that may contain employment records from various sources, but these aren't comprehensive. If the employer requests your employment information from a certain period of time, like six years, and you omit a previous role that you held during that timeframe, it's unlikely to appear on a standard background check. However, being dishonest about your employment history can be a reason for the employer to disqualify or fire you if they find out. So it's always best to provide accurate information about your work experience, including explanations for any gaps in employment if that’s applicable or if it occurred during the time period the employer requested.

About the author

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.