Employment Background Check: The Complete Guide

A mistake in hiring can cost your company thousands of dollars and create a huge amount of workplace disruption. An employment background check serves as your first line of defense against potential hiring mistakes—but the process can seem complicated.

Small business owners often struggle with limited resources to conduct proper screening, HR professionals face the challenge of balancing quick hiring with legal compliance, and job seekers worry about what their background checks might reveal.

This comprehensive guide explains the nuances of background screening in plain language. You’ll learn about the different types of checks, legal requirements, costs, and timeframes.

Whether you’re an employer wanting to protect your business or a job seeker preparing for the hiring process, you’ll find practical, actionable information to navigate background checks successfully.

Table of Contents Table of Contents

1. Key Takeaways
2. What Are Employment Background Checks?
   1. Background Check Methods
   2. Benefits and Limitations of Background Screening
3. Common Types of Employment Background Checks
   1. Criminal History Screening
   2. Employment Verification
   3. Education and Credential Verification
   4. Credit History Reports
   5. Motor Vehicle Records (MVR)
   6. Drug Testing
   7. Social Media Screening
   8. International Background Checks
4. How Does the Background Check Process Work?
   1. The Information Collection Process
   2. Timeframes and History Coverage
   3. Understanding Background Check Costs
   4. Background Check Completion Times
   5. Receiving and Reviewing Results
   6. Common Delays and Challenges
5. Pre-Employment Background Checks
   1. What Shows Up on Pre-Employment Checks
   2. Industry-Specific Requirements
   3. Standard Processing Times
6. Legal Requirements and Compliance Guidelines
   1. Federal Background Check Laws and Regulations
   2. Social Media Screening Regulations
   3. State Restrictions on Credit Reports
7. State-by-State Background Check Laws
   1. California Background Check Laws
   2. Florida Background Check Levels
   3. Washington State Background Check Laws
   4. New York Background Check Laws
   5. Georgia Background Check Laws
   6. Michigan Background Check Laws
   7. Illinois Background Check Laws
   8. Texas Background Check Laws
   9. Other Notable State Rules
8. Background Check Requirements by Industry and Position
   1. Financial Services
   2. Healthcare
   3. Transportation
   4. Education
   5. Government Contractors
   6. Retail and Service Industry
   7. No Background Check Jobs
9. How To Get an Employment Background Check for Yourself
   1. Using a Professional Service
10. Moving Forward With Background Checks
11. FAQs
12. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. What Are Employment Background Checks?
   1. Background Check Methods
   2. Benefits and Limitations of Background Screening
3. Common Types of Employment Background Checks
   1. Criminal History Screening
   2. Employment Verification
   3. Education and Credential Verification
   4. Credit History Reports
   5. Motor Vehicle Records (MVR)
   6. Drug Testing
   7. Social Media Screening
   8. International Background Checks
Show Full Guide
4. How Does the Background Check Process Work?
   1. The Information Collection Process
   2. Timeframes and History Coverage
   3. Understanding Background Check Costs
   4. Background Check Completion Times
   5. Receiving and Reviewing Results
   6. Common Delays and Challenges
5. Pre-Employment Background Checks
   1. What Shows Up on Pre-Employment Checks
   2. Industry-Specific Requirements
   3. Standard Processing Times
6. Legal Requirements and Compliance Guidelines
   1. Federal Background Check Laws and Regulations
   2. Social Media Screening Regulations
   3. State Restrictions on Credit Reports
7. State-by-State Background Check Laws
   1. California Background Check Laws
   2. Florida Background Check Levels
   3. Washington State Background Check Laws
   4. New York Background Check Laws
   5. Georgia Background Check Laws
   6. Michigan Background Check Laws
   7. Illinois Background Check Laws
   8. Texas Background Check Laws
   9. Other Notable State Rules
8. Background Check Requirements by Industry and Position
   1. Financial Services
   2. Healthcare
   3. Transportation
   4. Education
   5. Government Contractors
   6. Retail and Service Industry
   7. No Background Check Jobs
9. How To Get an Employment Background Check for Yourself
   1. Using a Professional Service
10. Moving Forward With Background Checks
11. FAQs
12. References

Key Takeaways

• Different industries and positions require specific types of screening—from basic verification to comprehensive investigations.
• Employers typically spend $20 to $100 per background check, depending on screening depth.
• In most states, criminal background checks look back seven years, but timeframes can vary.
• Background checks must comply with federal and state laws, including obtaining written consent and following specific procedures when taking adverse actions.
• Job seekers can obtain their own background check reports to address potential issues proactively.

What Are Employment Background Checks?

A pre-employment background check investigates a candidate’s past by reviewing records, references, and databases to confirm their identity and discover potential red flags. These checks help businesses protect themselves, their employees, and their customers by verifying that candidates are who they say they are.

According to the Professional Background Screening Association, 95% of employers use some form of background screening during hiring. The depth of these checks varies based on business needs and position requirements.

Background Check Methods

Employers can choose between two primary approaches when conducting background checks: direct verification through government agencies and databases or partnering with a professional screening service.

Direct Background Checks

Direct checks involve HR personnel gathering information through government agencies, courthouses, and previous employers. This might include:

• Requesting criminal records from county courthouses
• Obtaining motor vehicle records from state DMV offices
• Contacting previous employers for work history verification
• Reaching out to educational institutions to confirm degrees

While potentially more cost-effective, direct checks take more time and require detailed knowledge of compliance requirements. Some records may only be accessible in person or through mail requests, which can extend turnaround times.

Professional Screening Service Packages

Professional background check companies offer various pre-bundled screening options.

Basic screening typically includes identity verification and a basic criminal record search. Small businesses or companies hiring for entry-level positions might choose this option, which costs around $20 to $40 per candidate.

Mid-level positions often require more thorough checks. Comprehensive verification examines employment history, education records, professional references, state and county criminal searches, and credit checks when relevant to the position. Comprehensive checks typically range from $50 to $150 per candidate.

Some regulated industries mandate universal screening with extensive background investigations, incorporating federal and multi-state criminal searches, drug testing, professional license verification, and international screening. These packages can cost several hundred dollars per candidate and might include ongoing monitoring.

Benefits and Limitations of Background Screening

Background checks guard against workplace violence and minimize theft risks while reducing liability for negligent hiring claims. They boost regulatory compliance and lead to better quality hires overall.

The financial impact of skipping proper screening can be severe. The U.S. Department of Labor estimates that a bad hire costs at least 30% of the employee’s first-year earnings. For a $50,000 salary, that’s $15,000 lost on one poor hiring decision.

While background checks are valuable tools, they can’t predict future behavior, and information might be incomplete or outdated. Some records remain sealed or expunged, while international records may prove difficult to verify. Even public records can contain errors.

Common Types of Employment Background Checks

Employers can investigate various elements of a candidate’s background through checks like criminal history screening, employment verification, and credit history to build a complete picture of job candidates. The importance of each of these to a background check process will depend on the role.

Criminal History Screening

A criminal record search forms the backbone of most background checks. This type of screening searches court records at county, state, and federal levels for convictions, pending cases, and sometimes arrest records.

Federal checks uncover crimes like tax evasion or interstate drug trafficking, while county searches reveal local offenses like driving under the influence (DUIs) or petty theft.

The Federal Bureau of Investigation (FBI) maintains the most comprehensive criminal database, but access remains restricted to specific industries and purposes. Most employers rely on combinations of state and county searches to build a complete criminal history profile.

To conduct a criminal background check, employers have two options:

• Direct courthouse searches: HR personnel can visit county courthouses or request records from state agencies. Some jurisdictions offer online access to public records, though others require in-person visits.
• Professional screening services: Background check companies maintain relationships with courts nationwide and can typically access records more quickly through established channels.

Employment Verification

Employment verifications confirm a candidate’s work history, typically covering positions held, dates of employment, and job titles. Some previous employers may also share information about job performance or rehire eligibility when permitted by state law.

This verification process guards against resume fraud, which is a significant concern. In fact, studies show that 75% of HR managers have caught lies on resumes.

It is possible to reach out to previous employers by phone or email to confirm employment details. Another option is to use professional background screeners that access employment databases and contact employers directly to verify work history claims on your behalf.

Education and Credential Verification

Academic verification confirms degrees earned, dates of attendance, and sometimes grade point average (GPA) or honors received. This check can extend to include professional certifications, licenses, and specialized training credentials.

For positions requiring specific credentials—like nursing licenses or commercial driver certifications—verification ensures candidates maintain current, valid qualifications. Some industries mandate regular re-verification to ensure ongoing compliance.

Academic verification requires either direct contact with educational institutions or working through a professional screening service. When verifying directly, employers must:

• Contact each school’s registrar’s office
• Submit official verification request forms
• Pay any associated transcript or verification fees
• Wait for processing, which varies by institution

For positions requiring specific credentials—like nursing licenses or commercial driver certifications—employers must contact the appropriate governing bodies or licensing boards. This might include:

• State nursing boards
• Department of Transportation
• Professional certification organizations
• State licensing agencies

Credit History Reports

A credit history review examines a candidate’s financial background through a modified credit report. Unlike consumer credit reports, employment credit checks don’t show credit scores. Instead, they reveal payment history, bankruptcies, and outstanding debts.

Credit checks primarily serve roles with financial responsibilities or access to sensitive information. Federal law requires specific disclosures and permissions before running credit checks, and some states restrict their use in hiring decisions.

While employers can technically obtain credit reports directly through credit reporting agencies (Equifax, Experian, or TransUnion), this option proves impractical for most organizations. Direct access requires extensive documentation proving business legitimacy, a lengthy approval process, and dedicated staff training on FCRA compliance.

Due to these barriers, most employers opt to work with professional background check services that have established relationships with credit bureaus. These services handle compliance requirements and can typically deliver reports within 24 to 48 hours.

Motor Vehicle Records (MVR)

A driving record check reveals license status, moving violations, accidents, and DUIs. Organizations with company vehicles or driving responsibilities rely on these checks to protect against liability and ensure insurance compliance. The Department of Transportation mandates regular MVR checks for commercial drivers.

Employers can request driving records directly from the state Department of Motor Vehicles (DMV). However, this requires setting up an employer account, submitting specific DMV forms, and waiting several days to weeks for processing.

Instead, they can opt to work with a professional screening service with direct access to DMV databases across multiple states, offering faster turnaround times.

Drug Testing

Pre-employment drug screening varies by state law and company policy. Some industries, like transportation and healthcare, face federal requirements for drug testing. Methods range from urine analysis to hair testing, each covering different detection periods and substances.

Companies that work directly with testing facilities must manage multiple vendor relationships, especially when hiring across different regions. This requires coordinating appointments, tracking results, and maintaining compliance documentation across various testing locations. Many employers find this direct management challenging, particularly for nationwide hiring initiatives.

Again, professional background check services simplify the process by providing access to established networks of testing facilities. They handle scheduling, ensure consistent testing protocols across locations, and consolidate results reporting through a single platform. In addition, these professional services stay current with varying state laws regarding drug testing, helping employers maintain compliance as regulations change.

Social Media Screening

While controversial, social media screening is becoming more common. The Federal Trade Commission has imposed regulations requiring third-party social media screening to comply with FCRA guidelines, just like traditional background checks. These reviews look for red flags on social media, like hate speech or violent content.

Professional screening services use specialized software to conduct social media reviews that look for background check red flags while avoiding protected class information. When conducted properly through a qualified screening provider, social media reviews filter out protected class information such as:

• Race
• Religion
• Medical conditions
• Family status
• Other protected information

Employers attempting DIY social media screening risk accessing information about protected characteristics that could lead to discrimination claims. Therefore, it’s safer to use a professional screening service for social media screening.

International Background Checks

International screening is essential but complex for candidates who have lived, worked, or studied abroad. While employers can attempt to verify international records directly, this approach presents significant challenges that make professional screening services the more practical choice for most organizations.

Professional screening firms maintain networks of international researchers and have established relationships with foreign agencies to navigate the following:

• Varying privacy laws between countries
• Inconsistent recordkeeping standards
• Language barriers
• Different naming conventions
• Extended processing times

International background screening faces unique challenges that vary by country:

• European Union (EU): Strict General Data Protection Regulation (GDPR) compliance required
• Canada: Provincial privacy laws affect screening scope
• China: Limited access to court records
• India: No centralized criminal database
• Australia: Each territory maintains separate records
• Germany: Criminal checks require candidates to request records
• France: Criminal records only available to government agencies
• UK: Basic criminal checks through the Disclosure and Barring Service
• Japan: Criminal records generally not available for employment
• Mexico: Required to use specific government channels

How Does the Background Check Process Work?

The background check process begins when an employer initiates a search through public databases, manual record searches, and direct verification with previous employers or institutions. They can do these checks directly or use a background check service.

The Information Collection Process

Each background check starts with basic identifying information: full name, date of birth, Social Security number, and addresses from the past seven to 10 years. Names get cross-referenced against aliases and maiden names through a Social Security trace to reveal all possible identities.

When using a professional background check service, the provider accesses multiple data sources simultaneously—searching court records, verifying employment, and checking education credentials. For employers conducting checks directly, each verification requires separate outreach to individual sources, from courthouse visits to contacting previous employers.

Timeframes and History Coverage

Most criminal history searches span seven years, but this varies by state and position. Some roles, like senior executives or financial officers, might require longer lookback periods. Salary also affects timeframes: positions paying over $75,000 annually might see extended search periods, for example.

Education and employment verifications typically cover all history, regardless of timeframe. However, practical limitations exist—schools close, companies go defunct, and records are destroyed. In these cases, alternative verification methods become necessary.

Understanding Background Check Costs

The cost of a background check reflects its depth and complexity. Basic criminal searches might cost $25 to $50, while comprehensive screening packages can reach $200 or more per candidate.

Background check pricing can be broken down as such:

• Basic criminal database search: $15 to $30
• County criminal search: $20 to $65 per county
• Employment verification: $40 to $75 per employer
• Education verification: $40 to $75 per institution
• Motor vehicle records: $15 to $25
• Credit reports: $25 to $40
• Drug screening: $50 to $125

Additional fees may apply for:

• Court access
• International searches
• Specialized database access
• Rush processing
• Manual verification services

Many employers balance cost against risk by tailoring background check depth to position requirements. For example, entry-level roles might only need basic screening, while executive positions warrant comprehensive verification.

Background Check Completion Times

Background check completion times vary significantly based on check type:

• Basic database searches may return results within 24 to 48 hours
• County criminal searches can take three to 30 days, depending on the court system and location
• Employment verification typically takes two to five business days but may extend longer if previous employers are slow to respond
• International checks can take several weeks to months, depending on the country
• Education verification usually takes three to 10 business days
• Motor vehicle records are typically processed within one to three business days

Some factors can extend these timeframes, such as:

• Courts that only allow in-person record retrieval
• International holidays and different processing schedules
• Natural disasters or technical issues affecting court access
• Previous employers’ response times for verification
• Incomplete or incorrect candidate information requiring additional research

Receiving and Reviewing Results

Background check reports arrive differently depending on your approach. With direct verification, employers must collect and compile information from each source separately—criminal records from courthouses, employment confirmations from previous employers, and education verification from schools.

Professional screening services consolidate all results into a single report, often in sections, as each verification is completed. These services filter results to show only legally reportable information based on federal and state laws, helping employers maintain compliance.

Results require careful interpretation. A criminal record doesn’t automatically disqualify a candidate, and employers must consider the following:

• The nature of the offense
• Time since conviction
• Relevance to job duties
• Evidence of rehabilitation

When negative information appears, employers must follow specific steps under the Fair Credit Reporting Act before making adverse hiring decisions.

Common Delays and Challenges

Several factors can extend background check completion times:

• Common names create false positives requiring manual review
• International records demand extended processing
• Some courts only allow in-person record retrieval
• Former employers might delay responding to verification requests
• Drug testing involves lab processing time

Professional background screeners work to minimize these delays through automated systems and established relationships with information sources. They also track progress and alert employers to potential holdups.

Pre-Employment Background Checks

A pre-employment background check has a clear purpose: to identify qualified candidates while protecting your business from risk. This screening differs from other background checks because it specifically focuses on factors relevant to job performance and workplace safety.

The exact scope varies by organization and role. For instance, a retail position might warrant a basic criminal check and employment verification, while a financial advisor role would require deeper screening, including detailed credit history reviews and professional license verification.

Most pre-employment screening begins after a conditional job offer. This timing aligns with legal requirements in many jurisdictions and streamlines the hiring process by focusing resources on serious candidates. The job applicant receives written notice and must provide consent before screening starts.

What Shows Up on Pre-Employment Checks

Pre-employment screenings typically reveal the following:

• Identity verification (name, SSN, address history)
• Criminal convictions and pending cases
• Employment history and dates
• Educational degrees and certifications
• Professional licenses and credentials
• Motor vehicle records (when relevant)

Information that doesn’t typically appear on a pre-employment check include:

• Medical records (except for specific job-related requirements)
• Bankruptcies older than 10 years
• Arrest records without convictions (in many states)
• Expunged or sealed records
• Workers’ compensation history

The exact scope of information depends on state regulations and the type of position. For example, financial sector roles might include credit history checks, while transportation positions focus more heavily on driving records.

Industry-Specific Requirements

Different industries face varying screening mandates based on their unique risks and regulations.

• Healthcare organizations screen candidates against abuse registries and verify medical credentials.
• Transportation companies need comprehensive driving records and drug testing for their operators.
• Financial service providers dig deep into securities violations and financial histories.

The Department of Transportation sets specific screening rules for commercial drivers, while healthcare organizations must verify candidates against federal exclusion lists. Many educational institutions require fingerprint-based criminal searches to meet state regulations for working with students.

Standard Processing Times

Most pre-employment screenings wrap up within five business days, though individual components move at different speeds. For instance, simple criminal searches might return results within hours, while employment verification typically needs two to three days. Education checks usually take three to four days, and international screening can stretch to several weeks.

Several factors might extend these timelines. For example, some courts only allow manual record retrieval, which takes extra time, and previous employers sometimes delay responding to verification requests. When screening includes international records, local holidays and different processing schedules can affect completion times.

Legal Requirements and Compliance Guidelines

Running background checks requires careful attention to federal and state regulations. A mistake can lead to costly lawsuits and damage your company’s reputation.

Federal Background Check Laws and Regulations

The Fair Credit Reporting Act (FCRA) stands as the primary federal law governing the use of background reports. Under FCRA rules, employers must:

• Get written permission from job candidates before running checks
• Provide copies of credit reports if used for hiring decisions
• Follow specific steps when rejecting candidates based on background results

The Equal Employment Opportunity Commission (EEOC) adds another layer of federal oversight. EEOC guidelines prohibit using background checks in ways that discriminate against protected classes. A blanket policy of rejecting anyone with a criminal record might violate these rules by disproportionately affecting certain groups.

When background information leads to rejecting a candidate, employers must send a pre-adverse action notice. This notice includes a copy of the background check results and information about the candidate’s rights. The candidate then gets time to dispute any errors before a final decision.

The Americans with Disabilities Act (ADA) limits what medical information employers can seek during background screening. Questions about disabilities, genetic information, or past workers’ compensation claims face strict regulations.

Social Media Screening Regulations

Social media screening faces strict legal limitations:

• 27 states prohibit employers from requesting social media passwords
• Many states ban requiring friend/connection status
• Some states restrict viewing private account content

Employers can’t use social media to screen for:

• Age
• Race
• Religion
• Medical conditions
• Family status
• Other protected characteristics

Professional screening firms typically use specialized software to filter out protected class information when conducting social media searches.

State Restrictions on Credit Reports

While federal law permits employment credit checks, many states restrict their use:

• California: Allowed only for specific positions like managerial roles or jobs with financial access
• Colorado: Limited to industries like banking and positions with financial responsibility
• Connecticut: Requires written notice explaining the use of credit reports
• Hawaii: Permits credit checks only when directly relevant to job duties
• Illinois: Restricted to positions with financial responsibility or access to assets
• Maryland: Allowed only if required by law or relevant to job duties
• Nevada: Must relate directly to job responsibilities
• Oregon: Limited to specific industries and positions handling money
• Vermont: Requires clear job-relatedness and candidate consent
• Washington: Must be substantially job-related

Each state defines specific exemptions and requirements for using credit information in hiring decisions.

State-by-State Background Check Laws

Each state maintains its own regulations around pre-employment background checks. Let’s look at some of the specific requirements across major states:

California Background Check Laws

Under the California Fair Chance Act, employers with five or more employees face strict limits. For instance, they can’t ask about criminal history before making a job offer.

If an employer considers withdrawing a conditional job offer based on criminal history, they must perform an individualized assessment analyzing the nature and gravity of the offense, as well as evaluate the time passed since the offense and the relevance to job duties.

The employer must notify the candidate in writing, provide a copy of any background check report, and give the candidate at least five business days to respond with evidence of inaccuracy or rehabilitation.

Many California cities add their own rules. San Francisco won’t let employers ask about criminal records until after meeting candidates face-to-face, and Los Angeles requires written documentation explaining exactly why a criminal record makes someone unsuitable for a role.

Florida Background Check Levels

Florida Statutes 435.03 and 435.04 define specific screening levels for regulated industries.

These requirements specifically apply to:

• Healthcare facilities
• Child care centers
• Senior care facilities
• Educational institutions
• Other regulated care providers

Level 1 background screening is required for positions with vulnerable populations and includes:

• Employment history check
• Florida criminal history check
• National sex offender search
• Local law enforcement check

Level 2 background screening is required for positions with direct contact with vulnerable populations and includes all Level 1 elements plus:

• FBI fingerprint-based national criminal history
• State and federal criminal record search
• Expanded screening of disqualifying offenses

Washington State Background Check Laws

The Washington Fair Chance Act prohibits employers from asking about criminal records until they have determined that a candidate meets the basic job qualifications.

The state limits what records employers can use:

• They can’t consider arrests that didn’t lead to conviction
• Credit checks are only allowed for jobs where credit history directly matters
• Employers must send written notice before taking any negative action based on background results

These rules apply to both government and private employers across Washington.

New York Background Check Laws

The New York Human Rights Law offers strong candidate protections. Employers can’t reject someone just because they have a criminal record. They need to show either:

• A direct connection between the crime committed and job duties
• A real risk to safety or property

The NYC Fair Chance Act goes further. Employers must:

• Write out their analysis of why the criminal record matters
• Share this analysis with candidates
• Give candidates time to explain or challenge the decision

Georgia Background Check Laws

Georgia allows more employer freedom in background checks but requires careful handling of official records.

The state’s First Offender Act requires employers to:

• Tell candidates if these records affect hiring decisions
• Provide written notice before taking negative action
• Follow special rules about first-time offenses that courts have cleared from records

Michigan Background Check Laws

Michigan’s Clean Slate initiative establishes an automatic expungement system with varying waiting periods:

• Non-serious misdemeanors: Eligible for expungement after seven years from sentence completion
• Serious misdemeanors and one felony: Eligible after seven years from sentence completion
• Up to two felonies: Eligible after 10 years from sentence completion or release from incarceration (whichever is later)
• Certain traffic offenses: Eligible after seven years

Some offenses, including violent felonies, criminal sexual conduct, and serious misdemeanors, are not eligible for automatic expungement. However, the law allows individuals to petition for the expungement of eligible offenses before the automatic expungement timeline.

Employers can’t consider these cleared records in the hiring process. The state also limits credit checks to jobs involving money management.

Illinois Background Check Laws

The Illinois Employee Credit Privacy Act restricts credit checks but includes important exceptions. Employers can conduct credit checks when:

• The position involves access to assets valued at $2,500 or more
• The role manages financial information or business assets
• The job is at a bank, savings and loan association, or insurance company
• The position requires bonding under state or federal law
• The role involves access to confidential or security information
• Federal or state law requires credit checks for the position
• The job is at a debt collection agency
• The position involves overseeing five or more employees

Outside these exceptions, employers can’t inquire about or use an individual’s credit history for employment decisions.

For criminal records, employers with over 15 workers must:

• Wait until picking someone for an interview before asking about criminal history
• Show a direct connection between any criminal record and job duties
• Document their decision-making process

Texas Background Check Laws

Texas Business and Commerce Code § 20.05 focuses on time limits, restricting reporting of:

• Criminal records over seven years old
• Civil court judgments over seven years old
• Tax problems over seven years old

Texas keeps rules consistent statewide by preventing cities from making their own background check laws.

Other Notable State Rules

Massachusetts bans criminal history questions on job applications. Employers must explain in writing when they plan to ask about criminal records.

Oregon strictly controls credit checks. Employers must show in writing why checking credit history matters for the specific job.

Vermont’s salary history ban protects candidate privacy by:

• Banning questions about previous salaries
• Limiting how employers can look at social media
• Requiring consent for any background checks

Nevada updated its drug screening regulations in 2023. While the law generally prohibits pre-employment marijuana screening, important exceptions exist for:

• Safety-sensitive positions
• Federal contracts requiring drug testing
• Positions regulated by federal or state law
• Emergency medical responders
• Positions that could adversely affect others’ safety

Therefore, the state in which a company operates can significantly affect the background checks that can be performed and the procedures that must be followed.

Background Check Requirements by Industry and Position

Different industries and job roles require specific types of background checks based on regulatory requirements, risk levels, and job responsibilities. Let’s look at a few industries with specific rules.

Financial Services

Banks, investment firms, and insurance companies face strict screening requirements. A history of financial crimes or serious credit issues can disqualify candidates from roles handling money or sensitive financial data.

The Financial Industry Regulatory Authority (FINRA) requires background investigations that vary based on registration type and role. For example:

• Series 7 registered representatives undergo criminal background checks, employment verification, and fingerprinting.
• Supervisory roles face additional scrutiny of their financial and regulatory history.
• Non-registered administrative staff may undergo different levels of screening based on their access to customer information and firm assets.

FINRA Rule 3110(e) specifically requires firms to verify the accuracy and completeness of information in Form U4, including criminal history, employment history, professional licenses, and educational background.

U.S. Securities and Exchange Commission (SEC) regulations mandate screening for fraud, embezzlement, and other financial crimes. Investment advisors undergo credit checks to verify financial responsibility, and even administrative staff can face enhanced screening due to their access to sensitive customer data.

Healthcare

Healthcare organizations operate under unique screening mandates focused on patient safety. The Office of Inspector General (OIG) maintains databases of individuals banned from federal healthcare programs that organizations must check, and state medical boards require license verification for clinical staff.

Drug screening is standard across healthcare roles, and many positions require ongoing background monitoring to maintain compliance. In summary, there are particularly stringent screening processes for anyone with direct patient contact.

Transportation

The transportation sector’s background check requirements vary significantly by mode of transport, reflecting unique security and safety concerns. Let’s look at two examples—road and air transportation.

Road Transportation

Commercial drivers face extensive screening under Department of Transportation mandates. These requirements encompass detailed driving record checks, drug testing, and physical examinations.

Unlike many other sectors, these screenings continue throughout employment—commercial drivers undergo regular rescreening to maintain their qualifications and verify ongoing compliance with safety standards.

Air Transportation

Aviation workers navigate one of the most complex screening environments in any industry. The Transportation Security Administration (TSA) oversees a multi-layered screening process that adapts based on job duties and access levels.

For workers requiring unescorted access to secure airport areas, TSA Security Threat Assessments include FBI fingerprint-based criminal history checks, terrorist screening database verification, immigration status confirmation, and reviews of any prior violations of transportation security requirements.

Ground crew members with restricted area access face a modified but robust screening process. This typically includes criminal history verification, employment verification, and government watch list screening. Even administrative staff without secure area access undergo standard employment background checks based on employer policies.

Education

Education sector background check requirements can be complex, incorporating state, local, and institutional policies. These requirements adapt based on role and educational level, creating distinct screening frameworks across different educational environments.

K-12 Public Schools

• Most states require FBI fingerprint-based checks for all employees
• State-specific criminal history searches
• Child abuse clearance (requirements vary by state)
• Some states mandate periodic rescreening
• Many states have specific disqualifying offenses

Private Schools

• Operate under a different regulatory framework
• Requirements vary by state and school policy
• Some states exempt private schools from public school requirements
• Many private schools voluntarily follow the public school standards

Higher Education

• Requirements are more commonly set by the institution, not the state
• Federal grant requirements may mandate certain checks
• Faculty credential verification standards vary by accrediting body
• Athletic departments face National Collegiate Athletics Association (NCAA) compliance requirements for coaching staff

Government Contractors

Government contracting work demands unique and often intensive background screening protocols that align with federal security requirements. These requirements create a tiered screening system based on security clearance levels, with each tier requiring progressively more thorough investigation.

Federal contractors follow specific screening guidelines that vary by project sensitivity and access level. Defense contractors face rigorous requirements under Department of Defense protocols, often including periodic reinvestigation to maintain clearance status. This ongoing screening process helps ensure continuous security compliance throughout project lifecycles.

Contractors working with sensitive information undergo especially comprehensive screening. Beyond standard background elements, these investigations may include detailed interviews with personal references and neighbors. Financial records receive particularly close scrutiny for high-security clearances, as financial stability often serves as an indicator of potential security risks.

Retail and Service Industry

The retail and service sectors require a nuanced approach to background screening that balances thorough vetting with practical hiring needs. These industries must carefully follow Equal Employment Opportunity Commission (EEOC) guidelines, which require individualized assessment of all criminal records rather than blanket exclusions.

Entry-Level Positions

• Basic criminal history check reviewing all types of offenses
• Employment verification
• Social Security number verification
• If applicable, state-mandated checks

Management Roles

• Extended criminal history searches
• Education verification
• Professional reference checks
• Employment verification going back five to seven years
• Credit checks, where permitted by state law

When evaluating criminal history, employers must consider multiple factors to maintain EEOC compliance. This evaluation includes examining job relevance, time passed since the offense, the nature and gravity of the offense, and any evidence of rehabilitation. This helps prevent discriminatory practices.

Different role types require additional specific screenings. For instance, cash handling positions often warrant credit checks in states where permitted. Loss prevention roles might need expanded criminal searches while customer-facing positions sometimes include social media screening.

No Background Check Jobs

Some positions and industries commonly hire without background screenings. These roles typically include:

Entry-level service jobs, such as:

• Fast food restaurants
• Retail stockers
• General laborers
• Dishwashers

Independent contracting:

• Freelance writers
• Artists and musicians
• Handypersons
• Small landscaping jobs

Small business positions:

• Local shops
• Market vendors
• Small farms
• Independent bookstores

Temporary and seasonal work:

• Holiday retail help
• Agricultural harvest workers
• Event staff

Keep in mind that even these roles may require screening in certain circumstances, like working with vulnerable populations or handling significant amounts of money.

How To Get an Employment Background Check for Yourself

While it’s possible to compile your own background check by gathering records directly from various sources, a DIY approach presents significant challenges. Many background check databases are only available to authorized employers or licensed screening providers. Public records may require in-person courthouse visits, and some states restrict individual access to certain records entirely.

Previous employers often won’t provide detailed information to individuals but will respond to authorized background check companies. Similarly, some educational institutions only verify credentials through established verification services.

Gathering records from multiple sources also means paying separate fees to each agency and waiting for different processing times. And, without expertise in screening regulations, you might miss important records or access information that employers legally can’t consider, unwittingly giving an incomplete and biased picture of yourself.

Using a Professional Service

Given these challenges, most individuals choose to work with a professional background check service. Here’s how to get your own background check through a screening provider:

1. Select a screening company accredited by the Professional Background Screening Association (PBSA).
2. Confirm they offer personal background checks, as some only serve employers.
3. Compare package options and prices—basic checks start around $30, while comprehensive screenings range from $50 to $100.
4. Provide your full legal name, date of birth, and Social Security number.
5. List previous addresses for the past seven to 10 years.
6. Supply any former names or aliases you’ve used.
7. Follow the provider’s process to verify your identity.

Professional services typically deliver results within two to five business days and provide a report format similar to what employers receive. This gives you the most accurate preview of what potential employers will see during their screening process.

Once you’ve received your background check results, examine all records for accuracy and request corrections from original record sources (such as credit bureaus) if needed.

Conducting Background Checks: A Step-by-Step Guide for Employers

Running effective and legal background checks requires a systematic approach. Below, we outline the key steps in the background screening process.

1. Create Your Background Check Policy

   A background check policy acts as your roadmap for evaluating all candidates fairly. Start by mapping out which roles need screening and what specific checks match each position. For example, your financial roles may need credit checks, while your driving positions require MVR reports.

   • Your policy should spell out:
   • Which positions require background checks
   • What types of checks apply to each role
   • When in the hiring process checks occur
   • Who reviews results and makes decisions
   • How long records are kept
   • Privacy and confidentiality rules

   Set clear standards for evaluating results, but leave room to review each case individually. Write down how you’ll handle common issues—like candidates with minor criminal records or those who fail credit checks. Be sure to include a process for candidates to explain any negative results on their background check.

2. Select Your Screening Partner

   Most companies work with background check providers rather than trying to run checks themselves. Research potential providers carefully—you want one that balances speed, accuracy, and compliance.

   Background screening providers may hold accreditation through the Professional Background Screening Association (PBSA)’s Background Screening Credentialing Council (BSCC). This accreditation:

   • Requires regular audits of screening processes
   • Reviews the provider’s compliance with data privacy standards Evaluates security measures
   • Confirms adherence to FCRA requirements
   • Verifies dispute resolution procedures

   Not all PBSA members hold BSCC accreditation, so you should specifically verify this credential when selecting providers.

   You should also look for:

   • Strong data security measures
   • Clear pricing with no hidden fees
   • Fast turnaround times
   • Good customer support
   • Easy-to-use systems
   • A proven compliance record

   Ask each provider:

   • What databases do they search?
   • How do they verify accuracy?
   • What’s their dispute resolution process?
   • Do they help with compliance?
   • What’s included in their basic vs. premium packages?

   Compare total costs, not just per-check fees. Consider how many HR staff hours you may save by using a background screening partner.

3. Gather Required Information

   Create standardized forms to gather candidate information efficiently while complying with privacy laws. Your forms should:

   • Request only relevant details
   • Include clear consent language
   • Explain candidate rights
   • Meet state and federal requirements

   Digital forms often prove more candidate-friendly and efficient. Use clear instructions, provide realistic timelines, and maintain open communication channels for questions. Establish clear next steps to keep the process moving smoothly.

   Train your hiring team on proper data handling, too. They must know where to store sensitive information, who can access records, and how long to keep documents based on your state’s laws. When it comes time, they must know when and how to destroy old records.

4. Review and Evaluate Results

   Background check evaluation requires consistent procedures and well-trained reviewers. Establish clear guidelines for results assessment while maintaining compliance with legal requirements. Document all decisions thoroughly, especially when screening results affect hiring outcomes.

   When negative information appears on background checks, follow FCRA requirements precisely. This includes:

   • Sending required notices promptly
   • Providing an adequate response time
   • Maintaining detailed evaluation records
   • Documenting your final decisions

Note: This information is provided for informational purposes only and should not be considered legal advice.

Moving Forward With Background Checks

A comprehensive background screening program serves as your organization’s first line of defense in hiring, but it must balance thoroughness with efficiency.

While employers can conduct some background checks directly, most organizations find that partnering with a professional screening service provides the best combination of accuracy, compliance, and efficiency.

Professional background check companies maintain direct access to records databases, established relationships with verification sources, and up-to-date compliance expertise. This typically delivers faster results at a lower total cost than managing an in-house screening program, especially when considering staff time and potential compliance risks.

By working with a background check company and following the guidelines in this article, you’ll build a background check program that effectively protects your organization while creating a smooth experience for both hiring managers and candidates. The investment in professional screening services typically pays for itself many times over by preventing poor hiring decisions and maintaining consistent compliance.

FAQs Does a restraining order show up on an employment background check?

Yes, restraining orders typically appear on civil record searches, though some states limit reporting of civil actions older than seven years.

Does unemployment show up on a background check?

No, unemployment benefits don’t appear on standard background checks. Only work history verification might show gaps in employment.

Does a failed drug test show up on a background check?

Previous drug test results don’t typically appear on background checks unless specifically shared by former employers during employment verification.

Will a DUI show up on an employment background check?

Yes, a DUI appears on both criminal background checks and motor vehicle records, often staying visible for seven to 10 years, depending on state laws.

How long does a background check take for federal employment?

Federal employment background checks typically take two to six weeks, with security clearance investigations potentially extending several months.

References

1. Welcome to fbi.gov — FBI (FBI)
2. Department of Transportation (Transportation)
3. What Is a Protected Class? Definition, Examples, Laws (Thoughtco)
4. General Data Protection Regulation (GDPR) – Legal Text (Gdpr-info)
5. Disclosure and Barring Service – GOV.UK (Gov)
6. Fair Credit Reporting Act | Federal Trade Commission (Ftc)
7. Home | U.S. Equal Employment Opportunity Commission (Eeoc)
8. The Americans with Disabilities Act | ADA.gov (Ada)
9. Fair Chance Act | CRD (Calcivilrights.ca)
10. Statutes & Constitution Online Sunshine (Leg.state.fl)
11. Fair Chance Act | Washington State (Atg.wa)
12. NYS Open Legislation | NYSenate.gov (Nysenate)
13. Frequently Asked Questions About New York City’s Employment Protections Based on Criminal History  (A-us.storyblok)
14. Georgia Code § 42-8-63.1 (2017) – Discharges disqualifying individuals from employment :: 2017 Georgia Code :: US Codes and Statutes :: US Law :: Justia (Law.justia)
15. BUSINESS AND COMMERCE CODE CHAPTER 20. REGULATION OF CONSUMER CREDIT REPORTING AGENCIES (Statutes.capitol.texas)
16. BOLI : Hiring discrimination and “Ban the Box” : For Workers : State of Oregon
    (Oregon)
17. Vermont Laws (Legislature.vermont)
18. AB132 Overview (Leg.state.nv)
19. A vibrant market is at its best when it works for everyone | FINRA.org (Finra)
20. Series 7 – General Securities Representative Exam | FINRA.org (Finra)
21. 3110. Supervision | FINRA.org (Finra)
22. Form U4 | FINRA.org (Finra)
23. SEC.gov | Home (Sec)
24. Office of Inspector General | Government Oversight | U.S. Department of Health and Human Services (Oig.hhs)
25. Transportation Security Administration | Transportation Security Administration (TSA)
26. eCFR :: 49 CFR 1540.205 — Procedures for security threat assessment.(Ecfr)
27. NCAA.com – The Official Website of NCAA Championships | NCAA.com (Ncaa)
28. U.S. Department of Defense (Defense)
29. Background Checks: What Employers Need to Know | U.S. Equal Employment Opportunity Commission (Eeoc)
30. Home – Professional Background Screening Association (Thepbsa)
31. Background Screening Organization Accreditation Program Accreditation Code of Conduct  (Pubs.thepbsa)

The post Employment Background Check: The Complete Guide appeared first on ReadWrite.