Background Checks for Tech Companies: A Guide for Employers [2025]

Technology companies must fill positions quickly, but a poor hiring decision can lead to major financial losses and harm the company’s reputation.

Background checks help to ensure your candidates are highly qualified and have the necessary skills and certifications to perform their jobs.

This guide outlines what tech background checks consist of, their importance, steps to conduct them effectively, and key compliance considerations.

What is a Technology Employee Background Check?

A technology employee background check is a necessary investigation of an applicant’s criminal history, credit, former employment, education, professional credentials, and other relevant details for the job.

Tech new hires may work as independent contractors, they may be hired by agencies that specialize in placing highly skilled workers or be hired directly as employees.

Some examples of tech jobs that require pre-employment background checks include:

• Jobs in healthcare technology (biotech, medical software, electronic health record (EHR) systems, medical devices, analytics, telehealth, etc.)
• Jobs in transportation technology (ride-share platforms, logistics, autonomous vehicle technology, fleet management, EVs, etc.)
• Financial technology (FinTech) positions (digital payment providers, peer-to-peer lending, cryptocurrency, payment processing, mobile banking, personal finance apps, investment apps, etc.)
• Education technology (EdTech) jobs (online learning platforms, learning management systems, virtual tutoring platforms, digital classroom technology, educational content delivery, etc.)
• Jobs in e-commerce/retail tech (online shopping platforms, retail point-of-sale (POS) systems, retail automation, e-commerce website development, digital payment technology, etc.)
• Agricultural Technology (Agritech) positions (precision farming tools, supply chain management, crop monitoring, soil health monitoring, agricultural drones, etc.)
• Energy technology (Energytech) positions (renewable energy, solar technology, energy management systems, battery technology, smart grids, etc.)
• Jobs in real estate technology (virtual tours, data analytics, property management software, home staging platforms, digital real estate marketplaces, etc.)
• Entertainment/media technology jobs (streaming services, content creation tools, gaming platforms and studios, music distribution technology, video conferencing technology, etc.)
• Cybersecurity positions (data encryption, anti-virus software, firewalls, penetration testing, security administration, cybersecurity risk analysis, etc.)
• Artificial intelligence (AI) and machine learning roles (automation technology, machine learning applications, natural language processing, AI-powered analytics, robotics, etc.)
• Cloud computing/data storage jobs (SaaS, data processing, data centers, cloud storage, etc.)
• Virtual reality (VR) and augmented reality (AR) technology jobs (VR gaming, virtual training platforms, AR retail experiences, interactive displays, etc.)

Why are Background Checks Important for the Tech Industry?

Here are some key reasons tech companies perform background checks:

1. Reduce Risk

Background checks help tech companies reduce risks by identifying applicants who are dishonest, unqualified, unsafe, or lack the certifications they claim to hold.

This helps companies avoid poor hiring decisions that could expose them to risks of theft, embezzlement, incompetence, reputational harm, data breaches, civil penalties, and negligent hiring liability.

2. Protect Intellectual Property

Technology companies drive innovation and develop novel solutions for problems within many industries.

Because the competition is fierce among tech companies, intellectual property protection is critical.

Background checks help companies identify individuals who might place their trade secrets and patented technology at risk so they can protect their intellectual property from theft.

3. Ensure Qualified Talent

Technology companies face significant competition to find highly qualified talent to fill specialized, technical roles.

The need to fill specialized technology roles quickly with skilled professionals can lead some companies to make poor hiring decisions.

Technology background checks allow employers to maintain a fast time-to-hire while making smart hiring decisions and finding highly qualified candidates who can propel the company forward.

4. Protect Workplace Safety

Background checks enable employers to confirm their new hires are safe by identifying candidates who could risk the safety of current employees, the company, and customers.

5. Hire Faster

Conducting background checks with the help of a reliable provider like iprospectcheck can streamline the hiring process and reduce time-to-fill and time-to-hire.

Our advanced research methodologies and access to reliable databases allow us to quickly return comprehensive reports so you can make hiring decisions confidently.

6. Attract and Retain Key Talent

In a highly competitive industry like tech, your success depends on attracting and retaining top talent.

Background checks help you attract the right people and show potential recruits your company values hiring the best candidates.

Current employees are more likely to feel satisfied and remain with your company when they see that you uphold high standards in your hiring practices.

What Does a Tech Employee Background Check Show?

Technology companies request different types of background checks depending on the open positions they’re hiring for.

Here are some common types of background checks for tech employees:

Criminal History

When an applicant has a conviction or pending charge, a criminal background check for employment reveals the following information:

• Criminal case number
• Jurisdiction
• Offense date
• Offense type
• Severity of the offense
• Disposition
• Disposition date
• Sentence (if available)

A criminal conviction doesn’t necessarily bar an applicant from employment, but you should assess it concerning the job’s responsibilities, duties, and workplace safety.

Employment Verification

Employment verification reports the following information about a candidate’s past jobs:

• Name and address of each employer
• Employment dates/ gaps in employment
• Positions held and job titles

Verifying an applicant’s past employment helps employers understand their experience, job performance, and honesty.

Education Verification

Education verification shows the following details about a candidate’s educational history:

• School(s) attended with addresses
• Attendance dates
• Degree(s) conferred

Verifying an applicant’s education allows you to confirm their qualifications and trustworthiness.

Professional License/Certification Verification

Professional license and certification verification reveals the following details:

• License/certificate validity
• License/certificate type
• License/certificate number
• Issuing body
• Issuance date
• Name of certificate or license holder
• Expiration date
• Suspensions or revocations
• Public discipline/sanctions

Many technology jobs require specialized certifications to demonstrate a candidate’s experience and competence with various software and other technologies.

Identity Verification

Identity verifications are initial searches background check providers perform to confirm an applicant’s identity and that the records found belong to them instead of a similarly named individual.

These preliminary checks help ensure the validity and accuracy of the other reports you order and identify other areas that might need to be searched.

Credit Checks

A pre-employment credit check discloses the following information about an applicant:

• Debt collection accounts
• Payment history
• Available credit
• Debt-to-income (DTI) ratio
• Bankruptcies
• Judgments
• Current and former employers
• Full legal name
• Other credit inquiries
• Indicators of financial stress/mismanagement

Pre-employment credit checks involve soft pulls on a candidate’s credit history and don’t hurt their credit score.

Global Watchlist Search

A global watchlist search reveals whether an applicant has been involved in the following illicit activities:

• Terrorism
• Major financial crimes
• Narcotics trafficking
• Embezzlement/Theft
• Fraud
• Major international crimes
• Sanctions
• Exclusions/debarments

Many technology companies tap candidates from other countries to find people with the necessary skills to fill critical roles.

This makes it important to conduct thorough international checks, including global watchlist searches.

How to Conduct Background Checks for Tech Hires

1. Develop a Thorough Background Check Policy

You must develop an effective background check policy to ensure adherence to compliance laws.

Your policy should include detailed information about the searches you perform for positions based on their levels of authority, sensitive data access, and specific duties.

Include information about the state and federal laws that your HR staff must follow when they complete background checks.

2. Train HR Staff

Schedule training sessions for the personnel involved in the hiring process about your expectations before, during, and after background checks.

The training should explain the specific steps your HR staff must follow throughout the process to ensure legal compliance.

3. Hire a Fast, Accurate Background Check Provider

Background check providers are not created equal. It’s important to choose a reliable provider like iprospectcheck that is highly accurate, current, FCRA-compliant, and fast.

The benefits you’ll derive from working with iprospectcheck include:

• Fast, reliable reports in as little as a few hours to a couple of days
• Excellent candidate experience through transparent communication and information at their fingertips with our SwiftHire mobile app
• Highly accurate, current results because of our advanced research methods and extensive access to reliable information sources
• Legal adherence to all relevant laws to facilitate your compliance
• Excellent customer service for fast answers to your questions
• ATS integrations with numerous HRIS systems
• API integration

4. Comply with Notice and Consent Rules

You must comply with the FCRA’s notice and consent rules when planning to conduct background checks.

Notify applicants and employees that your company performs background checks on a standalone form that doesn’t include other information.

Before you begin the process, obtain your candidate’s signed consent.

5. Review the Results

When you receive your reports, review them carefully to inform your hiring decision.

If you want to move forward, contact the candidate to negotiate salary and benefits.

Schedule onboarding and their start date.

If the results raise concerns, proceed with the remaining steps.

6. Individually Assess Convictions

A criminal conviction shouldn’t be an automatic bar to employment.

However, you should individually assess a conviction in relation to the job’s duties and workplace safety before basing your decision not to hire the applicant on that information.

7. Complete the Adverse Action Process

If you decide not to hire a candidate because of information you learned from a background check, complete the FCRA’s adverse action steps:

• Send the candidate a pre-adverse action notice – Include a copy of the report with the negative information highlighted.
• Provide a reasonable response time (Typically, five business days) – Give the applicant a reasonable time to respond with evidence the information is wrong or that they have been rehabilitated.
• Send a final adverse action letter – If you ultimately decide not to hire the applicant, send a final adverse action notice and include a copy of their rights under the FCRA and any state laws.

Legal and Compliance Considerations

Federal Laws

Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) is a consumer privacy law enforced by the Federal Trade Commission (FTC).

This law applies to consumer reporting agencies (CRAs), including background check providers, and employers that use the information to make employment decisions.

The FCRA is designed to protect consumer privacy in the information CRAs gather, retain, and report to employers and other third parties.

Under the FCRA, CRAs can’t report certain information older than seven years when a job pays less than $75,000 per year, including:

• Arrests not resulting in convictions
• Paid tax liens
• Chapter 13 bankruptcies (Chapter 7 – 10 years)
• Civil lawsuits
• Civil judgments
• Collection accounts

The seven-year rule doesn’t apply to convictions or positions with annual salaries of at least $75,000.

Information about an applicant’s employment, education, certifications, and other details is also not restricted by the seven-year rule.

Employers must comply with the FCRA’s notice and consent rules by providing a clear notice that they conduct background checks on a separate form without extraneous information.

They must also obtain an applicant’s written, signed consent before starting a background check.

If an employer doesn’t want to hire an applicant because of information learned from a background check, they must complete the adverse action process before making a final decision.

Title VII of the Civil Rights Act of 1964

Title VII of the Civil Rights Act of 1964 is a federal anti-discrimination law enforced by the Equal Employment Opportunity Commission (EEOC).

This law prohibits employment discrimination based on the protected statuses of applicants and employees.

According to EEOC enforcement guidance, employers should individually assess criminal records as they relate to the job before basing a decision not to hire the applicant on a conviction.

Fair Chance to Compete for Jobs Act

The Fair Chance to Compete for Jobs Act (FCA) is a fair chance hiring law that applies to federal contractors and agencies.

Federal agencies and contractors must wait to inquire about applicants’ criminal records until they have extended contingent employment offers.

Companies that violate the FCA can’t contract with federal agencies.

State and Local Laws

State and local laws vary widely, so you should consult legal counsel to understand which apply to your company and industry. Here are a few laws that might affect you:

Ban-the-Box Laws

A growing number of state and local governments have enacted ban-the-box laws, which control when in the hiring process employers can ask about criminal history information.

Salary History Ban Laws

Some states, including California, Colorado, Hawaii, and others, have enacted salary history bans that prohibit employers from asking about an applicant’s pay history before making an employment offer.

Credit Check Restrictions

Several states have enacted laws that restrict pre-employment credit checks, including Washington, Illinois, California, and others.

These laws typically provide exceptions for employers hiring for jobs in financial roles and others in certain industries.

iprospectcheck: Your Trusted Provider of Technology Employee Background Check Services

Employment background checks for the tech industry allow  employers to verify candidates’ qualifications, skills, certifications, and more.

Make better hiring decisions with iprospectcheck’s fast, accurate, and complaint background checks.

Contact us today to get a free quote: (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.