Indianapolis Background Check for Employment: A Complete Guide [2025]

Employers in Indianapolis count on background checks to build trustworthy teams and follow hiring laws.

At iprospectcheck, we deliver fast, dependable background screening services that support businesses throughout Indiana.

In this guide, you’ll learn about the key regulations and best practices for running employment background checks specifically in Indianapolis.

What is an Indianapolis Employment Background Check?

An employment background check in Indianapolis investigates a candidate’s criminal history, academic background, work experience, licenses, and other critical information to assess if they’re right for a particular job.

Why Do Employers in Indianapolis Run Background Checks?

Employers in Indiana use background checks to validate candidate history and make informed hiring choices based on verified data rather than just what appears on a resume.

Here are some of the main reasons why Indianapolis employers rely on background screening:

1. Promote a Safe Work Environment

Checking for past criminal activity helps employers spot risks that could affect coworkers, customers, or the general public.

This is a key part of maintaining a safe workplace.

2. Ensure Fair and Equal Hiring

Using the same background check process for every applicant supports consistency and fairness.

This approach reduces bias and helps avoid discrimination claims.

3. Follow Legal and Industry Regulations

Indianapolis employers must comply with federal laws, state regulations, and any local requirements when conducting background checks.

Some industries also have specific screening rules.

For example:

• Employers regulated by the S. Department of Transportation (DOT) must carry out DOT background checks, DOT physicals, and DOT drug tests for roles classified as safety-sensitive.
• Indiana University Health, with its major hospital campus in Indianapolis, clearly states in its careers section that all prospective employees must undergo a background check during the hiring process.
• Indiana University requires background checks for all new hires, including checks on criminal history, education, licenses, and offender registries.

4. Avoid Negligent Hiring Claims

Employers can face legal consequences if a staff member causes harm and wasn’t properly vetted.

Running a thorough check shows that you took reasonable steps to make a safe hire.

5. Protect Confidential Information

Roles in healthcare, finance, and legal fields often involve handling sensitive data.

Background check helps confirm an applicant’s trustworthiness to protect that information.

6. Maintain Your Business Reputation

Your employees represent your company to the public.

Reviewing someone’s background can help avoid bringing on individuals whose past actions could harm your brand or client trust.

How to Conduct Employment Background Checks in Indianapolis

1. Build a Background Check Policy

Start by creating a written policy that outlines when and how background checks are used in your hiring process.

The policy should comply with federal laws, Indiana state rules, and any applicable local guidelines.

Make it clear which roles require screening and what types of checks are included.

2. Train Your Hiring and HR Team

Your hiring staff should be trained on the legal responsibilities involved in background checks.

Training should include topics like getting consent, reviewing reports properly, and handling concerns in a fair and legal manner.

3. Provide Disclosure and Get Written Permission

Before ordering any background reports, give applicants a standalone disclosure that explains your intent to conduct a background check.

Then, get their written authorization, as required by the Fair Credit Reporting Act (FCRA).

4. Work with a Trusted Background Check Provider

Choose a background screening company that delivers reliable results and understands legal requirements.

A reputable provider like iprospectcheck can help ensure your checks are accurate, timely, and fully compliant.

5. Time the Background Check Properly

Although Indiana law restricts ban-the-box rules for private employers, it’s still best practice to wait until after an interview or conditional offer before asking about criminal history.

This shows fairness and helps minimize potential legal issues.

6. Match the Screening to the Role

Customize background checks based on the job.

For example, check driving records only for positions that involve operating a vehicle.

This keeps your process focused and cost-effective.

7. Communicate with Applicants

Keep candidates updated on where they stand in the process.

Once the background check is complete, review the results and let them know the next steps, whether it’s moving forward or discussing any concerns.

8. Review Criminal History Carefully

If a criminal record appears, evaluate it on a case-by-case basis.

Consider how long ago it occurred, how serious it was, and whether it has any connection to the job.

This approach is supported by both federal guidelines and Indiana law.

9. Follow the FCRA Adverse Action Steps

If you decide not to hire someone based on background check results, the FCRA requires you to follow the adverse action process:

• Pre-Adverse Action Notice – Send a copy of the report and explain the concern.
• Allow Time to Respond – Give the applicant time to respond or provide corrections.
• Final Adverse Action Notice – If you choose not to hire, send a final notice along with a summary of the applicant’s rights under the FCRA.

What Shows Up on an Indianapolis Background Check?

What shows on a background check depends on which screenings you request.

Most Indianapolis employees require the following searches:

Criminal History

If a candidate has a criminal record or pending charges, a report might show:

• Case number
• Court name
• Offense date
• Charge description
• Whether it’s a misdemeanor or felony
• Case outcome
• Disposition date
• Sentencing details (if available)

You should review these records in context and only consider them if they relate to the job.

Sealed, expunged, or pardoned records are excluded, and Indiana law limits how that information can be used when hiring.

Employment Verification

This check confirms the applicant’s job history, typically including:

• Names and locations of past employers
• Dates of employment
• Job titles and responsibilities

It helps identify resume gaps or false claims.

Education Verification

Education check confirms academic achievements and may include:

• Name and location of schools
• Dates attended
• Degrees or certifications earned

This ensures candidates meet the educational requirements for the role.

Professional License Verification

For positions requiring a license, this check verifies credentials and may show:

• License holder’s name
• License type and number
• Status (active, expired, or restricted)
• Issuing authority
• Dates issued and expired
• Any disciplinary actions

This is especially important in regulated fields like healthcare, law, and finance.

Identity Verification

This step confirms the candidate’s identity and helps guide where to search further.

It often includes:

• Full legal name and any aliases
• Previous addresses
• Date of birth

It also ensures the background report is linked to the right person.

Motor Vehicle Records (MVR) Check

For jobs that involve driving, an MVR report may include:

• Driver’s license number and class
• License issue and expiration dates
• Legal name and listed address
• Traffic tickets, DUIs, or serious violations
• Suspensions or revocations

These checks confirm if a candidate is legally allowed, insurable, and safe to drive for work.

Important Laws and Regulations

Federal Laws

Fair Credit Reporting Act (FCRA)

The FCRA protects job applicants by setting rules for how consumer reporting agencies (CRAs) gather and share personal information.

It also explains what employers must do before and after using a background report.

For jobs paying under $75,000 per year, background reports cannot include:

• Arrests without convictions (older than 7 years)
• Paid tax liens
• Civil suits and judgments
• Chapter 13 bankruptcies (Chapter 7 can be reported for up to 10 years)
• Debt accounts sent to collections

Before running a background check, employers must:

• Give a clear, separate disclosure form
• Get written permission from the applicant

If a decision not to hire is based on the report, the employer must:

• Send a copy of the report and a pre-adverse action notice
• Give the applicant time to respond
• Send a final adverse action notice if the decision stands

Fair Chance to Compete for Jobs Act (FCA)

The Fair Chance to Compete for Jobs Act (FCA) applies to federal employers and contractors.

It requires them to wait until after a conditional job offer before asking about a candidate’s criminal record.

Breaking this rule could lead to losing eligibility for federal contracts.

Title VII of the Civil Rights Act of 1964

Title VII bans employment discrimination based on race, color, religion, sex, or national origin.

The Equal Employment Opportunity Commission (EEOC) enforces this law and provides guidelines for employers on how to handle criminal records fairly.

When a background check reveals a criminal record, employers must:

• Consider whether the offense relates to the job
• Review how much time has passed
• Think about any risks to safety

Automatic rejections based on a record could lead to discrimination claims.

State Laws

Accuracy Requirement for Criminal Records (IC § 24-4-18-7)

Per IC § 24-4-18-7, consumer reporting agencies (CRAs) are prohibited from including criminal history information in a background check report when the information provided fails to include material changes that have been reflected in the record for 60 or more days before the report.

CRAs do not violate this law if they report criminal history information that doesn’t include material changes that occurred less than 60 days before the background check.

This rule helps ensure that reports reflect current, accurate data.

Restrictions on Disclosing Certain Records (IC § 24-4-18-6)

Under Indiana Code § 24-4-18-6, CRAs are prohibited from reporting expunged records, restricted or limited access records on pre-employment background checks.

They also can’t report that an individual was convicted of a Class D felony that was reduced or entered as a Class A misdemeanor.

Instead, they should only report the Class A misdemeanor conviction without stating anything about the original Class D felony.

These records must not appear in employment background checks and cannot be used in hiring decisions.

Limits on Local Ban-the-Box Laws (IC § 22-2-17-3)

Indiana prohibits public employers from asking about criminal history on job applications with its Fair Chance Policy. However, public employers can ask about criminal history information later in the hiring process.

For local governments, including municipalities and counties, Indiana Code § 22-2-17-3 bars them from creating local ban-the-box laws for private employers.

This means Indianapolis cannot enact or enforce local ban-the-box rules on private businesses.

Indiana Civil Rights Law (IC § 22-9-1-2)

The Indiana Civil Rights Law prohibits employment discrimination based on race, color, religion, sex, disability, national origin, or ancestry.

Under this law, employers are expected to consider criminal history fairly and avoid policies that automatically disqualify applicants based on a record unless it’s relevant to the job.

Get an Indianapolis Background Check with iprospectcheck

Key industries in Indianapolis, such as healthcare, logistics, finance, and public services, are required to meet strict hiring and compliance standards.

At iprospectcheck, we provide fast, accurate, and fully compliant background screening services tailored to your needs.

Our reports are clear, detailed, and compliant, giving you the confidence to make hiring decisions while staying aligned with state and federal laws.

For more information or 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.