An employment background check is a review of a candidate's records, such as criminal history, employment and education verification, driving record, or credit, used to make hiring decisions. When a third-party screening company runs it, the Fair Credit Reporting Act requires disclosure, written consent, and specific notices.
Key takeaways
- Common checks include criminal records, identity, employment and education verification, and motor vehicle records.
- FCRA rules apply when a consumer reporting agency prepares the report.
- Many states and cities limit when criminal history can be asked about or considered.
- Credit checks are restricted for most jobs in about a dozen states.
How background check works
The usual sequence is: conditional offer, standalone disclosure and authorization, the check itself, review, and, if negative information may affect the decision, the two-step adverse action process (FTC, Using consumer reports: what employers need to know). Many employers run checks only after a conditional offer, which is required by ban-the-box and fair chance laws in many places.
When reviewing criminal history, the EEOC encourages individualized assessment, considering the nature of the offense, how long ago it occurred, and its relevance to the job, rather than blanket exclusions. Some roles, such as positions working with children, financial services, and transportation, have legally required checks.
Screening companies should be FCRA-compliant, accredited, and able to show turnaround times and dispute processes.
Background check example
A home health agency offers a caregiver role conditionally. With written consent, its screening provider checks identity, county and federal criminal records, the state abuse registry, and the candidate's driving record. The driving record shows two speeding tickets from four years ago. Since the role involves driving between client homes, the agency reviews them against its written driving standard, which allows minor violations older than three years, and finalizes the hire.
Why background check matters for employers
Background checks protect customers, coworkers, and the company, but they also create legal risk. FCRA class actions over technical disclosure errors are common, and blanket criminal history exclusions can produce disparate impact claims.
Speed matters too. SHRM's 2026 benchmarking data shows a median time-to-fill of 39 days for nonexecutive positions (SHRM 2026 recruiting benchmarking data), and slow checks add days at the end of the process when candidates are most likely to take another offer. Integrated screening in your ATS cuts that delay.
Common background check mistakes to avoid
Running checks before an offer where prohibited
Ban-the-box and fair chance laws often require a conditional offer first.
Burying the disclosure in an application
The FCRA disclosure must be a separate document.
Blanket criminal history policies
Use individualized assessment tied to job duties.
Checking social media informally
It can expose protected characteristics. Use a consistent, documented process if you do it at all.
Background check: questions people also ask
What shows up on an employment background check?
How far back do background checks go?
Do employers need permission to run a background check?
How long does a background check take?
Can an employer reject a candidate based on a background check?
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HRTally glossary entries are written by people who have run US payroll, benefits, and HR operations, then checked line by line against primary sources such as the IRS, Department of Labor, EEOC, and Bureau of Labor Statistics. Dollar limits and rates are for 2026 unless stated. We review every entry at least twice a year and whenever a rule changes. This page explains general rules and isn't legal or tax advice; state law can differ. Read our editorial standards.
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<blockquote>An employment background check is a review of a candidate's records, such as criminal history, employment and education verification, driving record, or credit, used to make hiring decisions. When a third-party screening company runs it, the Fair Credit Reporting Act requires disclosure, written consent, and specific notices.</blockquote><p>Source: <a href="https://www.hrtally.com/hr-glossary/background-check/">HRTally HR Glossary, Background check</a></p>
Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.