Do Background Checks Show Employment History? What to Know

Employment verification confirms whether an applicant has the necessary experience and qualifications for the job. It can also reveal gaps in employment history that should be satisfactorily explained.

Not all background checks include employment verifications.

This article outlines the key aspects of employment verification, including when it should be conducted as well as relevant laws.

When Does a Background Check Show Employment History?

Basic employment background checks typically do not include an applicant’s employment history.

To confirm what your applicants have claimed about employment on their resumes and applications, request employment verifications as a part of a complete background check package when you set up your background check program.

What Will I See in an Employment History Report?

When you request employment verification as a part of a background check, you’ll gain the following information about your applicant’s current and past jobs:

• The verification of the name and address of their employers

• The verification of the employment dates with each company

• Verification of job titles/positions held

You can quickly see whether an applicant has been accurate about their work experience and employment record in an employment history report.

When Should You Request Employment Verification?

There are multiple instances when requesting employment verification is important, including:

1. Standard Employment Background Check

You should conduct employment verifications to confirm your candidates’ previous jobs when you hire new employees.

A standard employment background check is a good idea for entry-level to managerial positions because it allows you to verify your candidate’s previous employment and confirm they have the experience you’re looking for.

2. Finance Industry Professions

Employment background checks for finance industry professionals are typically more thorough than standard employment history searches.

People in these roles can access their employers’ and customers’ sensitive financial information.

As a result, financial firms, banks, and credit unions typically ask for seven years of employment history.

3. Government Jobs and Those Requiring a Security Clearance

Government agencies request five to 10 years of employment history, depending on whether an applicant has applied for a non-sensitive or sensitive job.

The government requires a more in-depth employment history investigation for sensitive jobs.

For example, for a governmental job or defense contracting position that requires a top-secret security clearance, employers must check 10 years of the applicant’s employment record to comply with investigative standards.

4. Internal Transfers or Promotions

Some companies conduct new employment background checks when current employees are considered for transfers or promotions.

These types of employment history checks will look at both the employee’s internal employment record and past jobs with relevant experience.

For example, if an employee is being considered for a promotion to a senior executive role, you might request an employment verification of their past roles specifically related to the duties they would perform in this type of position.

5. Regulated Employers

Regulated employers in the transportation and healthcare industries must complete thorough background checks, including employment verification.

For example, regulated employers hiring for safety-sensitive jobs in the transportation industry must comply with U.S. Department of Transportation (DOT) rules. Truck driver background checks include verifying the driver’s safety performance history with each transportation company worked at for the previous three years.

6. Executive Positions

Employment verification for high-level executive positions is much more in-depth than verifying past employment for entry-level jobs.

In addition to verifying a candidate’s past job titles and employment dates, these types of employment history reports typically include a detailed reference check, including an analysis of their reasons for leaving past positions and any performance issues.

This is necessary because of the risk involved with hiring corporate executives who command high salaries and exercise significant authority.

7. Employment Gaps

Conducting employment verification helps organizations identify employment gaps.

If you learn a candidate has had one or more gaps in employment, you’ll want to understand why to gain additional insight into their suitability.

You can then follow up with the candidate to ask for an explanation of the employment gap to assess their likelihood of remaining with your company for the long term.

How to Get an Employment History Background Check

1. Create an Effective Background Check Policy

Before your company initiates any background check as a part of its hiring process, you should create a thorough employment background check policy.

Your policy should include the types of checks you’ll perform for different jobs.

Include employment verification as a standard part of your policy and more in-depth investigations reserved for sensitive or regulated jobs.

The policy should track relevant local, state, and federal laws and include specific steps HR staff must take before, during, and after conducting background checks.

2. Train HR Professionals

Once you’ve created a background check policy, train the HR professionals who conduct them.

Ensure they are current with all local, state, and federal laws and the requirements that apply to background checks.

Train them on how to request employment verification and complete more in-depth investigations when necessary.

Make sure they know how to assess the results and use employment history reports to check for indicators of dishonesty or performance issues.

3. Choose a Professional Background Check Provider

The quality of your employment verifications depends on who completes them.

A smart choice is to partner with a professional background check provider like iprospectcheck for reliable, current, and accurate information.

We stay current with all changes in the law and use our extensive resources and advanced research methods to complete employment verification and other reports quickly so you can make fast, informed hiring decisions.

4. Comply with Notice and Consent Rules

The Fair Credit Reporting Act (FCRA) includes notice and consent rules that apply to employers when they conduct background checks, including employment verification.

To comply, you must notify applicants you intend to conduct a background check for employment purposes. This notice should be on a standalone form.

You must also obtain their written consent before you initiate the process.

5. Request Employment Verification

Once you’ve complied with the FCRA’s notice and consent rules, communicate that to your background check provider.

Request they perform employment verification as a part of the employment background check.

6. Compare the Employment History Report to Your Applicant’s Resume

When you receive the employment verification report, compare the information reported to confirm the following details:

• Job titles – Compare the job titles reported on the employment verification report with those the applicant claimed on their resume or application.

• Employer names – Check whether your applicant left out one or more employers for relevant jobs on their resumes. Omitting a former employer may indicate performance issues requiring additional follow-up.

• Employment dates – Match the employment dates for each employer listed in the employment history report with those your applicant claimed on their resume. Look for gaps in employment or misrepresentations about their length of employment.

• Job duties – Verify whether the positions the applicant held have the same duties and responsibilities they listed on their resume.

7. Request Other Searches

In addition to employment verification, you should request other searches relevant to the position.

Other common searches employers request include:

• Education verification – This confirms an applicant’s attendance at specific institutions, their attendance dates, and whether they earned degrees or diplomas claimed on their resumes.

• Criminal history check – This reveals whether an applicant has a criminal conviction that could disqualify them from employment, but you must individually assess it as it relates to the job and workplace safety.

• Professional license verification – This verifies the candidate’s credentials for a professional job, confirms the license type, when it was issued, when it expires, its validity, and whether the applicant has received public discipline or sanctions.

• Motor vehicle records (MVR) checks – If the open position requires driving as a duty, an MVR check shows information about the applicant’s driver’s license, moving violations, and major traffic crimes if committed.

8. Review Other Search Reports

In addition to analyzing information from the employment verification, you should also carefully review and assess information reported in the other searches you requested.

9. Individually Assess Convictions

If your employment background check reveals your applicant has a criminal conviction, assess it individually as it relates to the position and workplace safety before deciding not to hire the candidate because of that information.

10. Communicate the Results

When a candidate’s background check and employment verification are satisfactory, call them to communicate the results.

Complete any further salary negotiations, schedule onboarding, and choose a start date.

11. Complete the Adverse Action Process

If you learn negative information about your candidate from their employment history or another report, the FCRA requires you to complete the adverse action process. This involves the following steps:

• Send a pre-adverse action letter – Explain that their results could result in a denial of employment. Send a copy of the report that includes the problematic information.

• Provide a reasonable response time – Give the candidate a chance to respond within a reasonable time (typically five business days). They can provide evidence the information is wrong or that they have been rehabilitated.

• Send a final adverse action letter – If you decide against hiring the applicant after completing the previous two steps, send a final adverse action notice. Include a copy of their rights under the FCRA.

Laws and Regulations

Federal Laws

Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) is the most important federal law governing employment background checks when conducted by consumer reporting agencies (CRAs) and requested by employers.

The FCRA includes a seven-year limit on reporting the following information for jobs that have annual salaries under $75,000:

• Arrests that didn’t lead to convictions

• Collection accounts

• Paid tax liens

• Chapter 13 bankruptcies (10 years for Chapter 7)

• Civil lawsuits and judgments

Importantly, the FCRA also governs employers when they request background checks and handle the information they receive.

Under the FCRA’s notice and consent rules, you must disclose that you conduct background checks on a standalone form. Don’t include any extra information on this form.

You must also obtain your applicant’s signed consent before initiating a background check, including an employment verification.

If you learn negative information about a candidate from their employment history report or another search included in your background check, complete the adverse action steps before making a final hiring decision.

Title VII of the 1964 Civil Rights Act

Title VII of the Civil Rights Act of 1964 prohibits workplace discrimination based on an applicant’s or employee’s protected characteristics.

The Equal Employment Opportunity Commission (EEOC) is the federal agency tasked with enforcing this law.

To avoid discrimination, be consistent with employment verification and other searches instead of singling out specific groups for background checks.

If a background check reveals a candidate’s criminal record, individually assess convictions as they relate to the job before basing a hiring decision on them.

Fair Chance to Compete for Jobs Act

While the Fair Chance to Compete for Jobs Act doesn’t apply to employment verification requests, it’s still important to know if your company seeks federal contracts.

This law requires federal contractors and agencies to wait to conduct criminal background checks until after making a conditional employment offer.

If you complete criminal history checks earlier, federal agencies can’t contract with your company.

If you want to verify an applicant’s employment history before making a conditional employment offer, you can. However, wait to complete a criminal background check until you have extended a contingent job offer.

State and Local Laws

States, counties, and municipalities may have laws that go further than federal law.

Because of this, you should consult legal counsel to learn about the requirements in your area to maintain compliance.

Partner with iprospectcheck for Reliable Employment History Checks

Employment verifications are a necessary part of the hiring process, but not all background checks include it.

Request it when you order background checks, and choose your provider wisely.

At iprospectcheck, we return accurate, up-to-date, and FCRA-compliant employment verification reports and background checks quickly so you can make informed hiring decisions.

To learn more about employment verification and other background searches we offer, call iprospectcheck 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.