If you’re one of the many employers that offer flexible or fully remote work options, it’s important to properly vet candidates to ensure they’re qualified and trustworthy.
At iprospectcheck, we help employers nationwide make better hiring decisions by providing them with fast, compliant, and reliable background checks.
In this guide, you’ll learn about the practical steps for conducting these checks effectively, as well as the legal requirements you need to follow.
Key Takeaways
- Employers hiring remote workers should perform background checks to protect against information loss, reduce fraud risks, verify experience and qualifications, maintain regulatory compliance, avoid unnecessary costs, ensure their candidates are who they claim to be, protect their brand’s reputation, and boost employee morale and client trust.
- Common searches in remote worker background checks include identity verification, criminal history, employment verification, professional license verification, and credit history.
- Employers performing background checks on remote workers must comply with the FCRA, Title VII of the Civil Rights Act of 1964, the Fair Chance to Compete for Jobs Act, and state and local laws.
- Best practices include creating a background check policy, training HR staff, complying with notice and consent rules, timing background checks wisely, partnering with a reputable provider, carefully reviewing results, individually assessing convictions, and completing the adverse action process when necessary.
Why Background Checks Matter for Remote Jobs
Despite proclaimed return-to-office initiatives, telework actually rose from 16.4% to 16.6% between January 2024 and January 2025.
While remote workers use the same sensitive information they would access if they worked in-office, working remotely increases the risks of data breaches, theft, and fraud.
Remote employees don’t work under the watchful eyes of a supervisor, so you must ensure you hire trustworthy, motivated people who will stay focused and remain productive.
Here are the benefits of conducting pre-employment background checks on remote workers:
1. Protect Against Information Loss
Remote employees need access to your company’s systems to perform their work.
However, this necessary technology access also means these workers can see your organization’s sensitive information.
While strong IT security helps to mitigate the risk of information loss, you should also perform thorough background checks to verify that your candidates can be trusted to handle sensitive information securely.
2. Reduce Fraud Risks
Since remote employees work without direct supervision, you must take steps to minimize your company’s fraud risks.
Performing background checks helps employers identify red flags that might indicate an applicant is dishonest.
3. Verify Candidates’ Qualifications and Experience
Your remote employees must have the qualifications and experience to perform their jobs.
Some applicants misrepresent their backgrounds and qualifications on their resumes and online profiles on sites like LinkedIn to try to secure jobs they aren’t qualified for.
Verifying an applicant’s employment history, educational background, and professional licenses helps confirm that they possess the necessary qualifications and skills for the remote position.
4. Maintain Regulatory Compliance
Certain industries, such as technology, finance, and healthcare, perform background checks to meet regulatory requirements.
Companies that operate in the gig economy and hire remote workers to drive must also complete background checks on prospective contractors to ensure they’re safe.
Industries required to perform background checks for in-office applicants must also run them for remote candidates.
5. Minimize Unnecessary Expenses
Whether working remotely or in-office, a bad hire affects your company’s finances.
Poor hiring decisions lead to increased turnover and additional expenses for recruiting, onboarding, and training replacements.
Background checks help to confirm a candidate’s experience and qualifications so you can make informed hiring decisions.
6. Ensure Your Candidates Are Who They Claim to Be
Hiring remotely means you must ensure your candidates are who they claim to be.
For example, IT workers from North Korea infiltrated more than 300 companies by using forged or stolen identity documents and having co-conspirators sit for video interviews.
When you run background checks on prospective remote workers, you can confirm their identities.
7. Protect Your Brand’s Reputation
Every employee you hire reflects on your organization, including those who work remotely.
Inadequately screened remote workers can harm your brand’s reputation through their actions and representation of your company.
8. Boost Employee Morale and Client Trust
Background checks on remote workers reassure existing staff and clients.
When you run background checks, your clients feel more secure that your employees will handle sensitive information properly, and your employees recognize you prioritize them and their safety.
Know Before You Hire
What’s Included in Remote Job Background Checks?
Your background checks must be uniform to prevent potential bias or discrimination and reduce liability risks.
This means you should conduct the same background checks for applicants for similar roles regardless of whether they will work in person or remotely.
However, you can perform different checks for jobs based on their duties and authority level as long as all applicants for positions on the same level undergo the same checks.
Background checks for remote workers commonly include the following searches:
Identity Verification
Identity verification is an initial search background check that companies like iprospectcheck perform.
This check confirms the applicant is who they claim to be.
Identity verification reveals the following details about an applicant:
- Names, including full legal name and any aliases the applicant has used
- Address history
- Date of birth
Criminal History
A criminal background check for employment reports information about pending cases and convictions, including:
- Criminal case number
- Jurisdiction
- Arrest date
- Type of crime
- Offense severity (misdemeanor/felony)
- Disposition and disposition date
- If available, sentence information
While a conviction shouldn’t be treated as an automatic bar to employment, you can look for offenses that indicate dishonesty and could put your company at risk.
It’s important to note that expunged, sealed, or pardoned convictions can’t be reported in states with expungement laws.
For example, under Colorado’s record sealing law, sealed records can’t be reported and are only accessible to law enforcement agencies and courts.
Record-holding agencies must answer “no” when they are asked whether the individual has a criminal record.
Employment Verification
Employment verification reveals the following details about an applicant’s current and former jobs:
- Employer names and addresses
- Employment dates with each employer
- Titles and positions held
Verifying your remote applicants’ work history helps you identify employment gaps or misrepresentations they might have made about their experience.
Education Verification
Education verification shows the following information:
- Names and addresses of the schools your applicant attended
- The dates they were enrolled
- Any degrees or diplomas they earned
This information helps you confirm the claims they’ve made on their resume and their qualifications for the job.
Professional License Verification
If you’re hiring for a remote job that requires professional credentials, professional license verification reports the following details:
- License number
- Licensee’s name
- License type
- Issuance date
- Expiration date
- Professional sanctions, suspensions, or debarments
Credit Checks
If you’re hiring remote workers for jobs in the financial or insurance industries, you might want to include a pre-employment credit check as a part of your background check.
This is a soft pull and won’t hurt your applicant’s credit score.
A pre-employment credit check shows the following information about an applicant’s credit history:
- Debt-to-income (DTI) ratio
- Available credit
- Other inquiries made
- Address history
- Debt collection accounts
- Bankruptcies (if applicable)
Legal Considerations
The laws governing background checks apply whether you’re hiring remote or in-person workers. Make sure you comply with the following laws:
Federal Laws
Fair Credit Reporting Act
The Fair Credit Reporting Act (FCRA) governs how consumer reporting agencies (CRAs), including third-party background check companies, collect, store, and report consumers’ sensitive information.
CRAs must comply with a seven-year reporting restriction for the following information when a job pays $75,000 or less per year:
- Debt collection accounts
- Chapter 13 bankruptcies (Chapter 7 bankruptcies can be reported for 10 years)
- Arrests that didn’t lead to convictions
- Civil lawsuits
- Civil judgments
- Paid tax liens
Employers must also comply with the provisions of the FCRA, including its notice and consent rules.
You must notify applicants that your company performs background checks. This notice must be on a separate form without other information.
Before starting a background check, you must get your applicant’s written consent. The authorization can be signed on paper or electronically.
The FCRA also requires you to go through the adverse action process when you decide not to hire an applicant based on information contained in a background check.
Title VII of the Civil Rights Act of 1964
Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on an applicant’s or employee’s protected status, including national origin, race, sex, color, religion, and others.
This law is enforced by the Equal Employment Opportunity Commission, which issued enforcement guidance on how employers should treat conviction records they learn about through background checks.
You should individually assess an applicant’s conviction in relation to the position’s duties before basing an adverse hiring decision on that information.
Fair Chance to Compete for Jobs Act
If your company has or is seeking federal contracts, you must comply with the Fair Chance to Compete for Jobs Act.
This law prohibits federal agencies from contracting with companies that ask about criminal history information or complete criminal background checks before they make conditional employment offers.
State Laws
State laws vary widely, so you’ll need to check the laws in your state to understand your legal requirements.
Some common laws to watch for include ban-the-box and credit history check restrictions.
Ban-the-box laws control when in the hiring process employers can ask about criminal history information.
Some states have enacted credit history restrictions for employment and limit their use to positions in the financial industry or those with access to sensitive information or money.
Consult legal counsel to understand the laws where you operate.
How to Conduct Background Checks for Remote Employees
1. Create a Compliant Background Check Policy
Before conducting background checks, create a thorough policy that includes processes to comply with all laws.
Your policy should include information about the specific steps your HR personnel should take before, during, and after they conduct background checks.
Detail the types of checks your company will perform for positions at various levels.
2. Train Human Resources and Legal Staff
Train your HR and legal staff on your background check policy and the laws that apply to the process.
Consider providing a checklist for HR to follow to ensure they don’t miss any steps.
3. Notify Applicants and Obtain Consent
Notify your remote applicants about your intention to conduct background checks. Send this notice as a separate form.
Ask for their consent, and don’t start a search until you receive it.
4. Time Background Checks Wisely
To save resources and time, time your background checks wisely.
It’s best to wait until you’ve identified a small number of finalists through interviews or have extended a conditional job offer to perform background checks.
Waiting avoids the cost involved with performing background checks on a broader pool of applicants.
5. Partner With a Reputable Provider
Choose a reputable background check company like iprospectcheck to receive accurate, reliable, and FCRA-compliant reports.
We have broad access to reliable information sources and advanced research skills. We stay current with all background check laws to ensure your reports are compliant.
With our advanced technology, we are also able to return comprehensive background checks to our clients quickly.
6. Review Results
When you receive results, carefully review them.
Contact the applicant and schedule the next steps if you decide to hire them.
On the other hand, if you are concerned about the information you learn in a background check, complete the following steps before you make a final decision.
7. Individually Assess Convictions
When an applicant has a conviction you learn about on a background check, assess it in terms of the job’s duties and workplace safety before you base an adverse hiring decision on that information.
8. Complete the Adverse Action Process (If Necessary)
If you decide not to hire an applicant because of something you learned in a background check, complete the following adverse action steps:
- Send a pre-adverse action letter to the applicant that identifies the information that concerns you. Include a copy of the report with the negative information highlighted.
- Give the applicant a reasonable time to respond with evidence that the information is wrong or that they have been rehabilitated. A reasonable response time is generally considered to be five business days.
- Send a final adverse action letter to the applicant if you make a final decision not to hire them after the previous steps.
Trust iprospectcheck for Remote Worker Background Checks
You must ensure that all employees you hire are qualified, trustworthy, and able to perform their jobs, including remote workers.
At iprospectcheck, we perform background checks for companies across the U.S., including for employers hiring remote workers.
To learn more about our background checks and receive a free quote, call us today: (888) 509-1979.
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.
FAQs
How long does a background check for a remote employee typically take?
How long a background check for a remote employee will take depends on the searches you request.
We can complete most searches within a few hours to a few days.
In-depth investigations might take longer.
How far back do background checks go for remote employees?
The FCRA limits how far back certain types of information on background checks can go when a job pays $75,000 or less per year.
For these jobs, you won’t receive information older than seven years about a candidate’s arrests that didn’t result in convictions, debt collections, paid tax liens, Chapter 13 bankruptcies, or civil lawsuits or judgments.
The FCRA doesn’t restrict the reporting of convictions, but some states limit how far back criminal background checks can go.
Employment, education, and professional license information can go back as far as you want, but most employers ask for information from the most recent few years.
Can I hire a remote employee with a criminal record?
Yes, you can hire a remote employee with a criminal record.
If an applicant has a conviction that does not relate to the job you’re considering them for, you can choose to hire them if you want.
Consider the conviction’s relevance to the job and any workplace safety concerns before you decide.
How much do remote employee background checks cost?
How much a background check for a remote job might cost depends on the searches you request and your industry.
At iprospectcheck, we offer numerous industry-specific packages and add-on searches at varying prices. We also offer volume discounts.
Contact us today for a free quote.
