A background check is a process used by employers to verify the personal, professional, and criminal history of a job candidate, ensuring their suitability for a position. This process often includes checking employment records, education, criminal records, and sometimes credit history.
Types of background checks
A background check can include various types of checks that help employers verify the personal, professional, and criminal history of job candidates. Below, we’ll explore the most common types of background reports.
Criminal background checks
Criminal background checks are used by employers to investigate a candidate's criminal history and make sure they don’t pose a risk to the organization or its employees. These checks typically involve searching various databases, including those maintained by the FBI, criminal justice agencies, and other law enforcement entities.
A criminal history background check will reveal any felony or misdemeanor convictions, arrests, and sometimes pending criminal cases. This information helps employers make informed decisions about a candidate’s suitability for a particular role, especially in positions that require a high level of trust and security.
Employment background checks
Employment background checks are a crucial part of the hiring process, helping employers verify job candidates’ professional histories. This type of background screening includes employment verification, which confirms past job titles, dates of employment, and reasons for leaving previous positions.
Employment screening helps employers make sure candidates have the experience and qualifications they claim to possess, reducing the risk of hiring individuals who may not be truthful about their work history. By conducting thorough background screening, employers can make more informed hiring decisions and build a trustworthy and competent workforce.
Other background checks
In addition to criminal and employment background checks, there are several other types of background checks that employers may conduct to gather information about a candidate:
- Motor vehicle records: These checks verify a candidate's driving history, including any traffic violations, accidents, and license status. This is particularly important for positions that require driving as part of the job.
- Education verification: This process confirms the educational qualifications listed on a candidate's resume, including degrees earned, institutions attended, and dates of attendance.
- Credit check: Employers may review a candidate's credit history and bankruptcy filings to assess financial responsibility, especially for positions involving financial management or access to sensitive financial information.
- Civil court records: These checks reveal any civil litigation involving the candidate, such as lawsuits, restraining orders, and other non-criminal cases.
- Social media: Employers may review a candidate's public social media profiles to gain insights into their character, professionalism, and potential red flags.
- Public records: While not common as part of a standard employment background check, employers can technically check any public record, which can include a wide range of information like property ownership, voter registration, and professional licenses.
When are background checks used?
Background checks are typically used during the hiring process to verify candidates’ qualifications and job history. Employers utilize background checks to help inform their hiring decisions and select the best candidates for the job.
What do you need to run a background check?
To run a background check, you need specific information from the candidate, including their name, date of birth, and Social Security number. Using a reliable background check service that offers integrations with other systems, like your applicant tracking software, can streamline the process. These services help verify the candidate's history, helping you ensure it’s accurate and complies with legal requirements.
Why are background checks important?
Background checks can help you mitigate risks and protect your business, employees, and customers.
To reduce risk to your business
Conducting background checks helps small businesses and large corporations alike to reduce potential risks associated with hiring employees. By verifying their candidates’ histories and credentials, businesses can avoid hiring individuals who may pose a threat to the company's safety, security, or reputation.
To comply with industry regulations
Background checks also help businesses comply with industry-specific regulations and requirements. For example, certain record checks are mandatory in sectors like healthcare, where verifying professional licenses or checking the sex offender registry can help keep patients safe and maintain the integrity of the services employees provide. Another example is jobs that require driving—like a municipal bus driver. In this case, regulations often require a background check that includes the candidate’s driving records to ensure they don’t have any history of dangerous behaviors behind the wheel.
To maintain a safe work environment
Maintaining a safe work environment is a top priority for employers. Conducting drug tests, for example, can help ensure that employees meet the necessary standards for professionalism and safety while reducing the risk of workplace incidents and fostering a secure environment for all employees.
To make fair, informed hiring decisions
Background check results give employers more comprehensive information about a candidate, helping them make fair and informed hiring decisions. By thoroughly reviewing a candidate's history, employers can hire individuals who are well-qualified and align with their company's values and requirements.
Frequently asked questions about background checks
Still have questions about background checks? Learn more in the FAQS below.
What is the Fair Credit Reporting Act (FCRA)?
The Fair Credit Reporting Act (FCRA) is a federal law that regulates how consumer information, including background check data, can be collected, used, and shared. The FCRA ensures that the information provided in background checks is accurate, fair, and used for permissible purposes, such as employment screening.
Are employers required to comply with the FCRA when conducting background checks?
Yes, employers must comply with the FCRA when conducting background checks. This means they must obtain written consent from the candidate before performing a background check, provide the candidate with a copy of their rights under the FCRA, and follow proper procedures if adverse action is taken based on the background check results.
How long do background checks typically take?
Turnaround times for background checks can vary depending on the type of check and the background check services used. Generally, basic background checks can be completed within a few days, while more comprehensive checks, such as those requiring verification of multiple records, may take a week or longer.
Can an employer run a background check without a candidate's consent?
No. Under the FCRA, employers must obtain written consent from the candidate before conducting a background check. Failure to do so can result in legal consequences and fines.
What types of records are checked in a background check?
Background checks can include a variety of records, such as criminal history, employment history, education verification, motor vehicle records, credit checks, and civil court records. The specific types of records checked will depend on the employer's needs and the position being filled.
Are there any restrictions on what employers can do with background check results?
Yes. The FCRA imposes restrictions on how employers can use background check results. Employers must use the information for permissible purposes, ensure the information is accurate and up-to-date, and follow proper procedures if taking adverse action based on the background check. Additionally, some states have their own regulations that provide further protections for job candidates.
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.