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Recruiting Basics

Background Check

A background check is a formal investigation of a candidate's personal, criminal, employment, and educational history conducted by a third-party consumer reporting agency or internal HR team. It is used to verify application accuracy, meet regulatory obligations, and reduce negligent hiring risk before employment or an offer is finalized.

What does a standard employment background check include?

A typical employment background check covers criminal record searches at county, state, and federal levels; identity verification via Social Security or national ID number trace; employment history confirmation; and education or professional license verification. Add-on components include credit history for finance-sector roles, motor vehicle records for transport roles, sex offender registry checks, and global watchlist or sanctions screening for roles with international dealings. The scope should match the role's specific risk profile and any applicable industry regulations.

How does the Fair Credit Reporting Act govern background checks?

In the United States, the Fair Credit Reporting Act requires employers to obtain written consent before ordering a background check through a third-party consumer reporting agency, provide a copy of the report and a summary of rights if adverse action is being considered, and send a final adverse action notice before withdrawing an offer. Many states and cities have enacted additional ban-the-box and individualized assessment requirements that restrict when and how criminal records can be considered. Multinational employers must separately comply with GDPR and country-specific laws for non-US candidates.

What should employers do when a background check reveals discrepancies?

When a check returns information that conflicts with the candidate's application or raises a concern, the employer should not immediately withdraw the offer. Instead, the candidate should be given an opportunity to explain or dispute the finding before a final decision is made. Many discrepancies are errors in the underlying database or reflect circumstances the candidate was unaware of. Individualized assessment considers the nature of the offense, how long ago it occurred, and its direct relevance to the specific job duties.

Related terms

Pre-Employment Screening Reference Check Job Description Phone Screen

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FAQ

Background Check — FAQs

How far back does a background check typically go? +
Most third-party providers report criminal records going back seven years for most positions, though the look-back period varies by state and by the salary or seniority of the role. Some jurisdictions allow or require unlimited look-back for specific roles such as those involving work with children or access to financial accounts.
Can a candidate be denied employment solely for a criminal record? +
In many jurisdictions, a blanket policy of disqualifying all applicants with any criminal history is illegal. Employers are generally required to perform an individualized assessment weighing the nature and age of the offense against the duties of the specific role. This protects against disparate impact on protected classes.
Who pays for the background check — the employer or the candidate? +
The employer typically bears the cost of employment background checks. Charging candidates for required pre-employment checks is restricted or prohibited in many jurisdictions and is broadly considered poor practice that harms candidate experience and employer brand.
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