How to Run a Background Check For Employment

With the vast majority (94%) of employers using one or more types of employment background checks, it’s important to know how to do a background check to help ensure the process for decision-making is both fair and compliant with the law. Here's what you need to know.

No matter how background information is obtained, employers must follow federal, state, and local laws that protect employees and applicants from discrimination. There are several steps to understand how to run a background check, including creating a written company policy, ensuring legal compliance, and making fair hiring decisions based on the results.

A written background check policy provides guidelines for searching any part of a candidate’s background as part of the hiring process. Designed to help your company be compliant with federal, state, and local laws, this policy should clearly state what types of screenings will be conducted for each position type, proper procedures for conducting them, and how the results of background checks will be used in making hiring decisions.

It’s a best practice to implement background screenings across your entire organization. For example, employers can’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 types of background checks for candidates being considered for certain roles – such as those that drive company vehicles or handle finances – and apply them consistently.

Employment background checks are regulated by federal, state, and local laws to ensure a fair hiring process for candidates. To simplify compliance, employers may choose to partner with a background check service, like Checkr, although you can also conduct searches on your own. Regardless of how you run a background check, employers are ultimately responsible for compliance with all applicable laws, including the federal Fair Credit Reporting Act (FCRA), anti-discrimination laws, and any state and local screening regulations, such as Ban the Box laws. Background check laws define when screenings can be conducted, how to provide appropriate disclosure and request candidate consent, and steps for using the results in hiring decisions.

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 business location. Additional considerations for choosing a screening provider 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. These may include:

The FCRA provides protections for candidates that cover what kind of information can be collected and reported as part of a background check. The Summary of Rights 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 a background check, obtain written authorization from the candidate, and follow the adverse action process if the information discovered 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:

The best way to run a background check on someone will vary based on your hiring needs and timeline. Employers may conduct searches on their own, though this may create a heavier administrative burden for your HR team. Background research can be time-consuming and difficult to navigate – searching records from multiple agencies, contacting previous employers or references, and remaining compliant with laws based on your and your candidate’s locations.

Many employers choose to partner with an accredited consumer reporting agency (CRA), like Checkr. CRAs provide a single point of contact for multiple background check searches, which streamlines the process for faster, accurate results. For example, Checkr’s advanced platform and extensive data network provide comprehensive results for more efficient screening.

Background checks are governed by federal, state, and local laws and regulations. Failure to comply with applicable laws can result in costly fines or lawsuits. Among the laws you’ll need to follow when conducting an employee background check:

Companies of all sizes trust Checkr for employment background checks. Checkr’s advanced platform makes it easy to manage your background check process by reducing time, human error, and potential bias for faster, fairer hiring. Our built-in compliance workflows not only support fair hiring, but enable HR teams to optimize their talent pool with confident hiring decisions. Whether you need to run 5 background checks or 500, Checkr screenings are easy to order with simple pricing–get started today.

About the author

As Content Marketing Manager at Checkr, Kate is passionate about developing resources that educate employers and job candidates about background checks, hiring insights, and the opportunity to build a better future through fair chance hiring.