Pre-Employment Background Checks: A Complete Guide [2025]

Finding just the right person to fill a position in your company can be a difficult feat. There are resumes to review, the interview—maybe even a few of them—and then if that goes well, there’s the employee background check.

Though it may be more daunting for them than for you, this complete guide on how to run a background check for employment will help ease any anxieties you have about the background check process.

While we can’t guarantee you’ll like what you see on your potential employee’s report, after reading this article, you’ll know how to run compliant background checks on future job candidates.

Let’s get started.

How Background Checks Are Evolving for Employers in 2025

In 2025, background checks are undergoing a significant transformation, driven by technological advancements and shifting regulatory landscapes.

To stay competitive and compliant, employers must understand and adapt to the following key trends:

• AI and Automation: Artificial intelligence is transforming both background checks and recruiting by speeding up data analysis and enhancing accuracy.

In 2025, AI legislation is rapidly evolving, with states like Illinois and Colorado leading by requiring bias audits and transparency in AI-driven hiring and employment decisions to prevent systemic discrimination.

Employers must comply with laws like Title VII and new CFPB rules to ensure AI tools used for hiring, monitoring, or managing workers are fair and transparent.

To stay compliant, organizations should use AI for process facilitation rather than autonomous decision-making and adopt comprehensive compliance frameworks that cover all AI applications in employment, partnering with vendors who prioritize fairness and regulatory adherence.

• Continuous Monitoring: Employers are adopting continuous background screening to monitor employees’ records throughout their tenure.

This approach ensures real-time risk mitigation and maintains workplace safety by promptly addressing emerging concerns.

• Digital Identity Verification: With the rise of remote work, digital identity verification has become essential.

Employers are utilizing secure methods such as biometric scanning and blockchain-based systems to verify candidates’ identities to ensure authenticity and reduce fraud.

• Social Media Screening: Employers are increasingly reviewing candidates’ social media profiles to assess cultural fit and professionalism.

AI-driven tools can analyze online behavior, distinguishing between isolated incidents and patterns of concerning conduct, providing deeper insights into a candidate’s character.

• Enhanced Compliance Measures: As data privacy laws change, employers must stay updated on new regulations to ensure compliance.

Concurrently, new laws, including regulations on AI usage and reforms around criminal history access (e.g., “clean slate” initiatives), are adding complexity.

Employers must stay informed to navigate compliance, especially with enforcement deadlines looming in 2026.

By collaborating with forward-thinking, compliant background check providers such as iprospectcheck, employers can leverage these innovations to enhance hiring processes while meeting legal and ethical standards.

What is a Pre-Employment Background Check?

A background check is a way to learn detailed information about a potential employee’s history.

While you may be able to gain some insight from the applicant’s resume, and they may even divulge some personal information during their interview, a professional background check goes into detail about the candidate’s background.

It gives you information regarding their past, which will help you make an informed decision when it comes down to the hiring decision.

While it’s illegal to discriminate based on someone’s race, color, national origin, sex, religion, or disability—and there are certain questions regarding medical conditions and age you should always avoid—conducting a background screening is completely legal.

A thorough pre-employment background check will provide you with valuable information you may otherwise never know — and you can use it to make an informed decision about who you hire, so long as your decision isn’t based on one the those protected categories.

More than just gathering information about a potential employee for the sake of knowing them better, a background screening is also a way to protect your company.

As an interviewee, it’s easy to sing your own praises during a job interview. Background checks make sure all the praises are truthful and that the person you are hiring is who they say they are.

Why are Employment Background Checks Important?

To illustrate the importance of conducting background checks before you make hiring decisions, we’ve included three alarming statistics below.

1. Failed Drug Tests at Highest Level

Many employers require pre-employment drug tests as a condition of employment. Drug tests help employers to reduce accident rates and ensure their workplaces remain safe.

According to an annual report from Quest Diagnostics, 4.2% of applicants tested positive for drugs on urine screens. This was the highest rate of positive drug tests since 2004 when the percentage was 4.5%.

2. Value of Internal Retail Theft Cases Increased

Internal theft is a major problem for employers. When employees steal from their employers, it can cause substantial losses.

During the COVID-19 pandemic, fewer employees were caught stealing. However, the average value of each case increased by 3.8% in 2020 from the value of employee thefts in 2019.

On average, employee retail theft cases were valued at $1,219.61 per case. A total of 26,463 dishonest employees were caught, and $32 million was recovered from them.

3. Lies on Resumes Very Common

While most people know that applicants sometimes lie on their resumes and applications, you might be shocked to learn exactly how prevalent this problem is. According to a report by CNBC, 75% of HR managers report that they have discovered lies on resumes.

Verifying the information people report on resumes is critical because doing so allows you to confirm the claims that they have made and ensure that you only hire honest employees.

As an Employer, Why Should I Run Background Checks on Potential Hires?

There are several reasons why you should conduct background checks on prospective candidates.

When you conduct pre-employment background checks, you can ensure that you hire trustworthy employees, protect your company’s reputation, and mitigate liability risks.

Pre-employment background checks provide the following benefits to employers:

• Helps to ensure you make fully informed hiring decisions
• Helps to ensure the candidates you hire are fully qualified
• Protects against liability risks
• Protects the safety of your employees and customers
• Protects your company’s assets
• Helps to ensure compliance with local, state, and federal laws and industry regulations

What Does a Background Check Show? 11 Most Common Background Checks

When you hear the words “background check,” you probably think of checking someone’s criminal record. And while this is an aspect of background checks, background screenings cover a variety of categories and provide various types of information relevant to a person’s history.

Depending on the type of employee background check you conduct, a screening can include information about a person’s educational background, work history and financial history.

Along with a candidate’s criminal record that includes any arrests or convictions, the screening can also include their driving record and tell you if they are a registered sex offender. [View sample employment background check report].

1. Employment Verification

While a job candidate will likely disclose their past work experience on their resume and job application, conducting a background check that includes employment verification allows you to be sure they have the experience they claim to have.

This includes checking their past job titles, timeframe of employment, salaries, and more. It’s important that you are hiring the best person for the position, and false experience just won’t do the trick.

2. Credit Checks

While credit checks do in fact check credit, they also cover a lot of personal information including present and past addresses and social security number, as well as any present or past debts, payments, and late payments.

Doing a background check that includes a credit check helps you feel confident the person you’re hiring is truthful and responsible.

3. Criminal Records

This one is pretty straight forward: you’ll want to do a criminal background check to ensure the individual you are hiring won’t be a danger to your company or to other employees.

It is important to consider the type of offense that was committed, as well as the time that has passed since the incident.

However, it is important to note that under the Equal Employment Opportunity Commission (EEOC), there are certain guidelines as to whether an employer can choose not to hire someone based on arrests or convictions found during their background check.

Because an arrest doesn’t mean the said person was actually found guilty of committing the act, there are no grounds to deny employment, unless further investigation shows clear wrongdoing.

Even more, if a person does have convictions that appear on their background check, the EEOC guidelines recommend extra consideration be taken to ensure the convictions are accurate before denying employment based on these findings.

4. Universal Background Check

A universal background check is different than a pre-employment background check.

This refers to the type of background check that is performed when someone purchases a gun from a licensed dealer, manufacturer, or importer.

The seller is required to complete a universal background check on the buyer through the National Instant Background Check System to check whether the person is eligible to buy a firearm.

There are several reasons why someone might not pass a universal background check to purchase a gun, including felony convictions, misdemeanor or felony domestic violence convictions, open arrest warrants, undocumented status, fugitive from justice status, and others. The Federal Bureau of Investigation conducts NICS background checks, and the U.S. Bureau of Alcohol, Tobacco, and Firearms oversees the process.

5. Office of Inspector General (OIG) Background Checks

The U.S. Department of Health & Human Services Office of Inspector General keeps a list of people and businesses that have been excluded from working in health care due to committing certain types of health care crimes.

These people are not allowed to work in health care programs that receive funding from the federal government.

If you are in the health care field, completing an OIG background check before hiring an applicant or entity should be a routine part of your hiring process.

This check is free and can be conducted by searching the OIG’s database using the applicant’s name.

If any results are returned, you can check them against your applicant’s date of birth and address.

The reason for his or her inclusion on the excluded list will be given, and you can confirm that he or she is the right person by checking his or her Social Security number.

The following types of crimes will result in someone being added to the excluded parties list:

• Medicaid or Medicare fraud
• Other convictions related to Medicaid, Medicare, or other state health programs
• Felony convictions for financial misconduct, theft, and fraud
• Abuse or neglect of patients
• Felony controlled substance convictions

The OIG may add people to the list at its discretion or decline to add them for the following offenses:

• Misdemeanor healthcare fraud convictions unrelated to governmental programs
• Misdemeanor convictions for fraud in a program receiving local, state, or federal funding
• Misdemeanor controlled substance convictions
• License revocation, surrender, or suspension because of financial integrity, professional competence, or professional performance issues
• Filing false claims with a federal health care program
• Providing illegal kickbacks
• Being a managing employee, officer, or owner of an excluded entity
• Defaulting on health scholarship or educational loan obligations

Employers that hire people on the excluded list and who have failed to conduct the OIG background check could face penalties and fines.

Employers could also be placed at risk of liability in negligent hiring lawsuits.

6. System for Award Management (SAM) Checks

The System for Award Management (SAM) is a system that allows government agencies and government contractors to search for the size, entity status, ability, location, and other information about businesses with which they are considering doing business.

Federal contractors might perform a SAM background check to make sure a potential subcontractor has the ability to perform work before signing a contract and is not on the SAM exclusion list.

What is a SAM exclusion?

SAM exclusion records identify those parties excluded from receiving federal contracts, certain subcontracts, and from certain types of federal financial and non-financial assistance and benefits.

These are also commonly known as “suspensions” and “debarments”.

7. Federal and State Fingerprint-Based Checks

The FBI maintains the Automated Fingerprint Identification System (AFIS), which includes more than 35 million fingerprint sets.

Individual states may also allow certain types of employers to perform fingerprint-based background checks.

Fingerprint-based checks are frequently conducted as a part of the pre-employment background checking process and are mandatory for such employers as law enforcement agencies, fire departments, hospitals, airports, and public schools.

Fingerprint-based checks are also required for certain types of professional licenses, including licenses for attorneys, realtors, physicians, brokers, pharmacists, and casino workers.

When an employer conducts a federal fingerprint-based check, the applicant’s fingerprint card will be compared with the fingerprint sets in the AFIS system to check for criminal history information from criminal justice agencies.

Any potential aliases used by an applicant will also be included.

Applicants for employment who are required to submit fingerprints will go to an authorized agency or organization to have their fingerprints inked or scanned and submitted.

Individuals who want to see what their identity histories contain can pay a fee of $18 and send a fingerprint card to the FBI.

A fingerprint identity history summary for an individual might include the following types of information:

• Criminal history
• Military service
• Naturalization
• Federal employment

When an employer conducts a state fingerprint-based background check, any results will be for that state only.

The information that might be returned for a positive match includes state criminal conviction and arrest records.

8. E-Verify

While E-Verify is technically not a background check, it is a  system enrolled employers can use to verify the eligibility and identity of an employee.

This check is performed online and compares information supplied on the I-9 form with government records. E-Verify can help employers confirm whether an employee has valid authorization to work in the U.S.

E-Verify is required for certain types of private and public employers in 22 states, and its use is mandatory for certain federal contractors. However, its use is voluntary for most employers.

There are a few key differences between E-Verify and the I-9 form. Form I-9 is required for all employers, but E-Verify is voluntary for most.

E-Verify requires a Social Security number and a valid photo ID, but Form I-9 does not. Employers are required to use Form I-9 to verify certain employment authorizations that are expired but may not use E-Verify to re-verify expired authorizations.

9. International Background Checks

If you are considering an applicant who has studied, worked, or lived overseas, you might want to request an international background check as a part of your pre-employment background screening process.

An international pre-employment background check allows you to get international information about an applicant’s foreign employment, education, and criminal history. With iprospectcheck, you can choose which of these types of international information you need for a candidate or request checks of all three.

The documents that might be required to perform an international check will depend on the country. If you need an international background check for an applicant, iprospectcheck can explain what you will need to submit.

10. Education Verification and Credentials Check

You can also verify the educational background and professional credentials of applicants.

With an education verification, you can confirm whether the applicant has received the diplomas, degrees, and certificates your positions require.

An education verification will allow you to see every educational institution the applicant attended, his or her attendance dates, and any diplomas, degrees, or certificates that were awarded.

For positions requiring professional licenses, you can also request a professional license and credentials check. This type of check will reveal whether the person has the required licensure and if his or her license is current, valid, and in good standing.

Verifying that your applicants have the education and licenses that you need can allow you to confirm that they are qualified for your positions and are trustworthy. This can help to protect your business from negligent hiring lawsuits.

Numerous industries require professional licenses to show that people holding them have the knowledge, experience, credentials, and ethics required to perform their jobs. Some examples of positions that require these types of licenses include the following:

• Attorneys
• Physicians
• Nurses
• Certified Public Accountants (CPAs)
• Stockbrokers
• Realtors
• Financial planners
• Massage therapists
• Psychologists
• Counselors
• Teachers
• Others

CRAs will typically contact the state licensing board to verify the applicant holds the license and that it is in good standing. A credentials check will also show whether there are any restrictions on the license or if disciplinary sanctions have been issued against the holder.

11. Sex Offender Registry Check

Sex offender registry checks might be important to include in your business’s pre-employment screening process.

However, it illegal to include sex offender registry information in background check reports in some jurisdictions, depending on the types of jobs for which employers are hiring.

While you can check the sex offender registry in your state, it will not include information about sex offender registries in other states.

The Department of Justice maintains a list of all of the sex offender registry websites in the U.S., including state sex offender registries, U.S. territory sex offender registries, and tribal sex offender registries.

However, performing an individual search of each website would entail a time-consuming process for employers.

A sex offender registry check performed by iprospectcheck will reveal whether an applicant appears on the sex offender registry of any state, tribal authority, or U.S. territory.

The following types of businesses are required to perform sex offender registry checks on applicants and volunteers before hiring them in most states:

• Schools
• Childcare facilities
• Healthcare facilities with direct patient care
• Agencies for the developmentally disabled
• Nursing homes
• In-home care agencies
• Government agencies
• Elder care agencies

If an applicant is a registered sex offender, you will receive his or her name, type of offense, date of offense, the severity of the offense, aliases, and other key details.

When you receive this type of information on an applicant, you should complete a risk assessment of the offense as it relates to your open position and document it.

You might also want to talk to your attorney about the laws in your state about considering information about sex offenders when making employment decisions.

Why would an employer need to know all of this information about a potential employee?

Knowing all of these details will help ease any uncertainties you have about a job candidate and help you determine if the person of interest is truly a good fit for your company.

While a background check is definitely not the only factor you should consider when deciding whether or not to hire someone, it does help paint a full picture and give you a broad understanding of the person’s experiences, successes, and stability.

Pre-Employment Background Check Laws

If you decide to go the more convenient route and choose a background check company like iprospectcheck to run an employee background screening for you, there are vital steps you need to take to ensure you follow all legal regulations, especially if you use the results of a background check as a reason not to hire someone.

Third party companies that run background checks must comply with the Fair Credit Reporting Act (FCRA), which protects the personal information of the applicant who is going through the screening.

The Fair Credit Reporting Act (FCRA) and Background Checks

Passed by Congress in 1970, the Fair Credit Reporting Act is meant to protect consumers with the privacy of their information that is held by consumer reporting agencies. This law is regulated and enforced by the Federal Trade Commission.

While this law was initially meant to protect financial information, its scope has been expanded significantly to include information on pre-employment background checks that consumer reporting agencies (CRAs) like background check companies report and how employers must handle the screening process.

To ensure compliance with the FCRA, you’ll need to do the following:

1. Provide notice to the applicant that the employer will be completing a background check.
2. Get the consent of the candidate to complete the background check.
3. Provide the applicant with a copy of the “Summary of Consumer Rights under the FCRA”
4. Provide the application with the name, address, and telephone number of the agency producing the report.

Under the FCRA, job candidates must be informed that they will undergo background checks, and they must provide authorization before a check is performed by an employer.

After a report is received, prospective employees have a right to review the reports and correct anything inaccurate. They also have the right to be informed when problematic information in background reports is used to make adverse hiring decisions. Finally, they also have the right to appeal an employer’s decision if they believe that it was unfair.

Under the FCRA, employers can only use information from a pre-employment background check to ensure that the applicant is a fit for the job. The written disclosure must be given to an applicant that he or she will undergo a background check, and written consent must be obtained before it can be completed. The candidates also must be told about their rights under the FCRA to review a copy of their background reports and to correct any inaccurate information.

If you decide to deny an applicant a job due to what is found on their background check, you must follow the Adverse Action Notification process. This process includes sending a letter to the applicant explaining what information was found that denied them the position, as well as informing them of where they can get a copy of this report.

Always include a copy of the most current and updated form titled, “Summary of Your Rights Under the Fair Credit Reporting Act”.

Taking these steps ensures you are following the FCRA regulations.

If you decide to run a pre-employment background check yourself, without the help of a third-party company, be ready to do some digging… and most likely not get all the answers you need.

While you may be able to sift through public records and search online databases, you won’t have access to all of the information available and may even be charged for extended searches.

But be careful:

You’ll want to ensure you don’t break any laws by making employment decisions based on one of the protected categories. Remember, it’s illegal to conduct a pre-employment background screening on someone because of their race, color, national origin, sex, religion, or disability.

While you may want to know, asking someone about their medical or financial history during an interview can get you in some big trouble—even if they’ve shared the information publicly on social media.

At iprospectcheck, we comply with the FCRA to ensure that our clients receive accurate, up-to-date, and FCRA-compliant information.

CFPB Warning on Use of AI and FCRA Implications

On Oct. 24, 2024, the Consumer Financial Protection Bureau (CFPB) issued Circular 2024-06, which addressed using AI to track applicants and employees and including scores on their background check reports.

The agency noted that some background check companies sell dossiers and reports to employers that use algorithms to monitor their employees by tracking such things as their employees’ driving habits, time spent off-task, keystroke frequency, and other data and create scores for employers to use to make employment decisions.

Extensive monitoring of employees in real-time goes far beyond what is typically included in background checks and raises privacy concerns.

According to the CFPB, AI-generated scores and tracking used to generate these reports by CRAs and employers’ use of them to make employment decisions are governed by the FCRA.

Before an employer can purchase a report containing an algorithmic score for employment purposes, they must follow the FCRA’s notice and consent rules by notifying employees of their intent to purchase these reports on a standalone form and obtain their written consent.

When an employer intends to take adverse employment action against an employee based on AI-generated scores included in reports, they must follow the adverse action steps, including:

• Notify the employee of its intent to take adverse action based on the AI-generated information and include a copy of the report;
• Give the employee a reasonable time (generally five business days) to respond with evidence the information is erroneous or unverifiable;
• Send a final adverse action notice if the employer ultimately decides to proceed with the adverse employment action based on the information in the report and provide the employee with a copy of their rights under the FCRA.

If a worker successfully disputes the information, the employer must delete inaccurate or unverifiable information and can’t base employment decisions on unverified or erroneous data.

Finally, employers are prohibited from using the reports for illegitimate purposes, including selling or marketing them.

The circular is the CFPB’s policy statement and is not a law, but it does indicate the importance of strictly adhering to the FCRA’s requirements when using information in employment background checks based on AI algorithms.

As AI quickly expands, laws have not yet caught up to its growing use.

However, employers must be aware that the government is working to draft and enact laws that could regulate its use and lead to FCRA violations in some cases.

Title VII of the Civil Rights Act of 1964 and Employment Background Checks

Title VII of the Civil Rights Act of 1964 (Title VII) makes employment discrimination against applicants and employees when it is based on their protected characteristics.

The Equal Employment Opportunity Commission (EEOC), the agency that enforces Title VII, has issued guidance for employers when they use information from background checks to make hiring decisions.

Employers should ensure they use the same screening process for all applicants for the same types of jobs without regard to their protected characteristics.

If an employer learns that an applicant has a criminal record, the employer must individually assess the conviction as it relates to the duties of the position before making a decision not to hire the applicant.

Fair Chance to Compete for Jobs Act

The Fair Chance to Compete for Jobs Act became effective on Dec. 20, 2021, and was included as a part of the 2020 National Defense Authorization Act.

This law functions as a federal ban-the-box law and prohibits federal agencies and companies that contract with the federal government from asking about the criminal histories of applicants on job applications.

Federal contractors and agencies also can’t ask about criminal history information until they extend conditional employment offers.

This law doesn’t apply to positions that prohibit individuals with certain types of convictions from specific jobs.

How to Complete a Pre-Employment Background Check

1. Draft and Implement an Effective Background Check Policy

Before you start conducting pre-employment background checks, you should draft and implement an effective background check policy that follows local, state, and federal laws.

This helps ensure your HR staff will adhere to the applicable background check laws that govern the process so that your company remains legally compliant.

At a minimum, your background check policy should include the following information:

• The types of background searches that will be performed and on which employees
• The specific steps your HR staff will follow when conducting background checks
• How your background check results will affect hiring and employment decisions
• When in the hiring process your company will conduct pre-employment background checks
• How the results will be communicated
• Your company’s record retention process for background check reports
• Information about the confidentiality of the information

Your company should implement background checks organization-wide, but the particular checks you conduct for applicants should vary based on the positions for which they are under consideration.

For example, a background check for a job with significant authority and access to your company’s funds and intellectual property should be much more extensive than a background check for a front-line, entry-level job.

Your policy should also address how your HR staff will consider specific types of information when they receive background check reports, including criminal convictions.

This should include conducting an individualized assessment as required under Title VII and completing the adverse action process under the FCRA before deciding not to hire a candidate based on that information.

Providing details about when in the hiring process your company will conduct background checks is also important.

In most cases, it’s best to wait until after your candidates have been interviewed and determined to be otherwise qualified for the job.

Waiting until later in the hiring process to conduct pre-employment background checks helps to save your company money and positions your company to comply with any applicable ban-the-box rules that might be in effect in your state or locality.

Once you have drafted your background check policy, train your HR staff on your policy and the laws that apply.

2. Follow the FCRA’s Notice and Consent Requirements

The Fair Credit Reporting Act (FCRA) includes specific notice and consent rules your company must follow when it conducts pre-employment background checks.

Make sure to carefully review the FCRA’s requirements to avoid technical violations that could result in litigation.

The notice that your company conducts background checks should be on a separate form and be prominent.

Do not include other extraneous information on this form.

Once a candidate reviews this form, you must obtain their written consent. You can include the consent on the same form as the notice.

Your background check provider will ask you to confirm you have complied with the FCRA’s notice and consent requirements before performing the background check for you.

3. Choose a Reliable Background Check Provider

You should be careful when choosing a background check company. You must ensure the provider you choose is accurate, current, reliable, and FCRA-compliant.

At iprospectcheck, our background check professionals have access to extensive resources, use cutting-edge research methodologies, and rely on advanced technologies to deliver current, reliable, legally compliant, and accurate background check reports to our customers quickly.

Because of our process, your company can receive comprehensive reports in time to make fast hiring decisions.

4. Choose the Right Background Checks to Conduct

Not all background searches will be relevant to your open positions and industry.

You should carefully select the types of searches you conduct to avoid wasting money on unnecessary information.

At iprospectcheck, we offer multiple packages you can select from and a menu of add-on searches to help you create a tailored background check that meets your needs.

5. Communicate With Your Candidates

Communicate with your candidates throughout and following your background check process.

By being transparent, you build trust in your company and its process.

To help, iprospectcheck offers a mobile app to keep your candidates informed during the screening process.

Communicate the results of the background check to your candidate once you have reviewed and assessed them.

If you have decided to hire the candidate, schedule their onboarding and start date.

6. Individually Assess Criminal Convictions

The Equal Employment Opportunity Commission (EEOC) has provided employer guidance on how companies should treat criminal conviction information when conducting pre-employment background checks.

The EEOC enforces rules under Title VII of the Civil Rights Act of 1964 among other civil rights and employment laws.

According to its guidance, employers should individually assess conviction records they discover on background checks before deciding not to hire applicants based on that information.

This assessment should include reviewing how a conviction relates to the specific job and its duties and whether it might affect workplace safety.

7. Complete the Adverse Action Steps

The FCRA includes a specific process employers must complete when they want to deny employment to applicants based on information revealed in background checks.

If you learn negative information about a candidate that makes you want to deny them the job, you must complete the adverse action steps, including:

• Send the applicant a pre-adverse action letter – Highlight the problematic information in the results and provide a copy of the report to the applicant.
• Give a reasonable time for the applicant to respond – In the pre-adverse action letter, give the candidate a reasonable amount of time to respond. Typically, this is five business days. The applicant can respond by providing evidence the information is wrong or that they have been rehabilitated.
• Send the candidate a final adverse action notice – If you want to deny employment to the candidate after completing the previous two steps, send them a final adverse action letter. Include a copy of the candidate’s FCRA rights and their rights under relevant state laws.

What Can Disqualify You on a Background Check?

There are multiple ways an applicant can be disqualified for a job based on a pre-employment background check.

Some of these include having a criminal record, claiming more education than you have, having a poor driving record or credit record, falsifying your employment history, and failing a drug test.

Each of these red flag issues that employers look for in a background check is detailed below.

1. Criminal Record

The National Conference of State Legislators reports that an estimated 77 million Americans have reportable criminal records for employment background checks.

Whether or not an applicant might be disqualified for employment based on a criminal record will depend on multiple factors, including the particular job for which he or she has applied, regulations that apply to the industry, and others.

In some cases, denying employment to someone based on his or her criminal record might be considered to be unlawful discrimination.

2. Fluffing Educational History

Some applicants try to fluff their resumes by claiming educational qualifications they have not received. However, doing this is never a good idea.

When an employer requests an education verification as a part of its pre-employment background check, the employer will be able to confirm the applicant’s degrees, diplomas, certificates, educational institutions attended, and the dates of attendance.

3. Poor Credit

Some industries check the credit records of applicants.

For example, applicants may have their credit records checked to obtain federal security clearances or work for financial institutions.

Some states restrict the ability of employers to rely on credit history information when making employment decisions, however.

If an employer is allowed or required to request a credit check on an applicant and spots problems, the employer might have concerns about the applicant’s financial responsibility and integrity.

4. Poor Driving Record

For applicants applying for jobs in which they will have to drive a company vehicle or a commercial truck, driving records checks are commonly requested.

This type of check helps employers to ensure that their applicants have the required driver’s licenses for the positions and are insurable through their commercial insurance companies.

An applicant for a position for which driving will be required may be disqualified for the job based on a poor driving record.

Without this type of check, the employer might face insurance and legal consequences if the applicant is hired and causes an accident while on the job.

5. Falsifying Past Employment Information

Most employers request employment verification to confirm that their applicants have held the positions they have claimed and their employment dates at each employer.

When an employer discovers that an applicant has falsified past employment information on his or her resume, the candidate will be unlikely to be hired for the job.

6. Failing a Pre-employment Drug Test

Employers can face significant liability risks when their employees use illegal drugs.

If an employer requests pre-employment drug testing and finds that the applicant has used an illicit substance, the employer can use that information to make an adverse hiring decision.

iprospectcheck: Your Employment Background Screening Partner of Choice

Doing pre-employment background checks on potential employees is a valuable step in ensuring you are hiring the right candidate for the job.

Background checks provide important information about a potential employee’s criminal record, financial history, work and educational background, and more.

Are you ready to start running FCRA-compliant background screenings on your potential employees?

When you partner with iprospectcheck, you can be confident you are receiving the most information at the best price.

Contact us today to learn more about our background check packages and to get a free consultation.

DISCLAIMER: The resources provided here are for educational purposes only and do not constitute legal advice. Consult your counsel if you have legal questions related to your specific practices and compliance with applicable laws.