New Jersey Background Check for Employment: A Complete Guide [2025]

Pre-employment background checks enable businesses in New Jersey to hire qualified candidates while ensuring compliance with state and federal laws.

At iprospectcheck, we specialize in providing accurate, legally compliant background screening solutions for companies across New Jersey.

This guide outlines the key requirements and best practices for conducting employment background checks in New Jersey.

What is a New Jersey Employment Background Check?

A New Jersey employment background check examines a job applicant’s criminal record, education, employment history, professional licenses, and other important information to evaluate their qualifications for a position.

Employers across New Jersey use these checks to verify the accuracy of a candidate’s background and make informed hiring decisions based on facts rather than unverified resume claims.

Why Do Employers in New Jersey Conduct Background Checks?

Employers across New Jersey perform background checks for several important reasons:

1. Promote a Safe Work Environment

Background screenings help New Jersey businesses uncover any criminal history or past behavior that could pose a risk to coworkers, customers, or the general public.

Reviewing candidates for relevant offenses helps create a safer, more secure workplace.

2. Ensure Fair and Consistent Hiring Practices

Using a standardized background check process allows employers to assess each candidate equally and reduce the influence of unconscious bias in hiring decisions.

This consistent approach supports equal employment opportunities while lowering the risk of discrimination claims.

3. Meet Legal and Industry Compliance Requirements

New Jersey employers must adhere to federal, state, and industry-specific regulations when conducting background checks.

For example, employers regulated by the U.S. Department of Transportation (DOT) must perform DOT background checks, DOT physicals, and DOT drug tests for candidates applying to safety-sensitive roles.

Various sectors, including transportation, healthcare, and finance, have stringent screening requirements:​

• Johnson & Johnson conducts pre-employment background checks as part of its hiring process​. These screenings verify a candidate’s education, past work experience, work authorization, and professional qualifications and may include criminal history checks for certain roles.
• Avis Budget Group, a transportation services company, requires a successful background check before new hires start. They typically review an applicant’s criminal record​ and ensure a clean driving record/valid driver’s license for roles involving the driving of rental vehicles​.
• Prudential Financial, a financial services and insurance firm, mandates background screening for all new employees​. These checks usually cover criminal history and regulatory compliance requirements, as well as verification of the candidate’s employment history, education, and any required professional licenses or credentials.

By complying with these regulations and conducting appropriate background screenings, New Jersey employers can mitigate legal risks and create a safer workplace.

4. Minimize Negligent Hiring Liability

Failing to screen employees properly can expose businesses to legal action if a hire causes harm or engages in misconduct.

Conducting thorough background checks demonstrates due diligence and helps protect employers from negligent hiring lawsuits.

5. Safeguard Sensitive Information and Build Client Trust

Numerous positions across industries like finance, healthcare, and legal services require employees to manage confidential customer information.

Background screenings help verify a candidate’s integrity and reduce the risk of fraud, data breaches, or mishandling of sensitive information.

6. Protect the Company’s Reputation

Employees often represent the company publicly, especially in customer-facing roles.

Background checks help avoid hiring individuals with a history of misconduct or legal trouble that could damage the business’s reputation or erode customer confidence.

What Information Appears on a New Jersey Background Check?

The information uncovered during a background check depends on the specific types of screenings the employer orders.

These typically include:

Criminal History

If an applicant has a criminal record or pending charges, the report may include:

• Criminal case number
• Court jurisdiction
• Date of the offense
• Description of the charges
• Severity level (misdemeanor or felony)
• Case outcome
• Disposition date
• Sentence details (if available)

Employers should carefully review criminal records for relevance to the job rather than making automatic disqualification decisions.

Additionally, background check companies cannot report sealed, expunged, or pardoned records.

Employment Verification

Employment history verification confirms the accuracy of an applicant’s work experience, including:

• Past employer names and locations
• Dates of employment
• Job titles and roles held

This helps employers validate work history and identify any unexplained gaps in employment.

Education Verification

Education verification confirms that a candidate meets the educational requirements for the role and may include:

• Name and location of each institution
• Attendance periods
• Degrees or diplomas awarded

This process allows employers to confirm the accuracy of the educational qualifications listed by the applicant.

Professional License Verification

For licensed professions, this screening verifies the status of professional credentials and may include:

• License holder’s name
• License status and validity
• License type and number
• Issuing authority
• Issuance and expiration dates
• Any public disciplinary records

This step verifies that candidates in regulated fields possess the necessary credentials required for their roles.

Identity Verification

Identity verification ensures the candidate is who they claim to be and helps identify relevant jurisdictions for additional checks.

It includes:

• Legal name and known aliases
• History of addresses
• Date of birth

This step helps confirm that the background check results belong to the right person.

Motor Vehicle Records (MVR) Check

For positions requiring driving, an MVR check provides insight into the applicant’s driving history, including:

• Driver’s license number
• License class
• Issue and expiration dates
• Full legal name and current address
• Traffic violations or major driving offenses
• Any license suspensions or revocations

MVR checks help confirm that candidates meet driving and insurance requirements for roles that involve operating a vehicle.

Important Laws and Regulations

Federal Laws

Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA) is a federal law that protects consumer privacy by regulating how consumer reporting agencies (CRAs) gather, store, and share background check information. It also sets rules for how employers use these reports during the hiring process.

According to the FCRA, CRAs cannot include certain information older than seven years for jobs paying less than $75,000 annually, such as:

• Arrests that did not result in a conviction
• Resolved tax liens
• Civil judgments
• Civil lawsuits
• Chapter 13 bankruptcies (Chapter 7 bankruptcies may be reported for up to 10 years)
• Accounts sent to collections

Employers must give applicants a clear, standalone disclosure explaining the background check process.

They are also required to obtain written consent from applicants before proceeding with the background screening.

If a background check leads to a negative hiring decision, employers must follow the FCRA’s adverse action procedures before finalizing the decision.

Fair Chance to Compete for Jobs Act (FCA)

The Fair Chance to Compete for Jobs Act (FCA) limits when federal employers and contractors can ask about an applicant’s criminal history, allowing it only after a conditional offer has been made.

Federal agencies are also barred from awarding contracts to companies that break this rule by asking about criminal records too early in the hiring process.

Title VII of the Civil Rights Act of 1964

Title VII prohibits discrimination in hiring, employment, or termination based on race, gender, religion, color, or national origin.

The Equal Employment Opportunity Commission (EEOC) enforces this law and offers guidance on how employers should handle criminal histories found in background checks.

Before disqualifying an applicant due to a criminal conviction, employers must conduct an individualized assessment, considering how the offense relates to the job and potential safety risks in the workplace.

State Laws

New Jersey Opportunity to Compete Law

The New Jersey Opportunity to Compete Law is found at N.J.S.A. § 34:6B-11 et seq. and applies to all employers in the state with 15 or more employees.

Under this law, employers are prohibited from advertising that people with criminal records will not be considered.

They also cannot ask about criminal history information during the initial application process.

Employers can only ask about criminal history information after an applicant has had an initial interview.

There are some exceptions to this law, including the following:

• Positions in corrections, law enforcement, emergency management, homeland security, or the judiciary
• Positions for which a criminal background check is required by law
• Positions for which the law states a criminal conviction makes an applicant ineligible
• Positions with companies that have programs in place to hire people with criminal records
• Any time an applicant voluntarily discloses his or her criminal record

New Jersey Clean Slate Law

In Dec. 2019, Gov. Phil Murphy signed the New Jersey Clean Slate Law. This law, found at N.J.S.A. § 2C:52-1 et seq., allows people with convictions that are 10 years old or older to petition the court for an expungement of their criminal records.

Expunged records will not be reported by CRAs, and employers are not allowed to rely on information about them when making hiring decisions.

While the Clean Slate Law applies to most offenses, the following types of convictions cannot be expunged and will be reportable:

• Murder
• Treason
• Manslaughter
• Kidnapping
• Rape
• Anarchy
• Perjury
• Forcible sodomy
• Arson
• False swearing
• Embracery
• Robbery
• Conspiracies, attempts, or aiding and assisting others to commit these offenses also cannot be expunged.

Requirement of Notice Before Performing Investigative Consumer Reports

Under N.J.S.A. § 56:11-33, employers that intend to conduct investigative consumer reports must provide advance notice to the consumers.

They must also provide them with a notice of their rights to receive a copy of the report.

Notice of Rights Before Taking Adverse Action

Under N.J.S.A. § 56:11-31, employers that intend to take adverse action must provide the applicants with a copy of their state and FCRA rights.

They must also provide a copy of the background check report.

Salary History Inquiry Prohibited

Under 2018 Executive Order No. 1, state agencies are prohibited from asking about an applicant’s salary history during the hiring process.

Social Media Information Inquiry Prohibited

Employers are prohibited from asking applicants or employees for their social media passwords under N.J.S.A. § 34:6B-5, et seq.

Employers are also prohibited from asking for access to an applicant’s or employee’s social media profile information in any manner.

Drug Testing and Positive Marijuana Results

Under N.J.S.A. § 24:6I-6.1, New Jersey employers are allowed to conduct pre-employment drug tests.

However, employers that have a drug testing policy must give applicants or employees who test positive for marijuana the chance to provide a valid medical explanation for the results.

Employers must give applicants and employees who test positive for marijuana a written notice that they have the right to provide this explanation.

Employers can continue to prohibit employees from possessing or using drugs and alcohol, including marijuana, at work or during their work hours.

Pay Transparency

Under 2024 NJ SB 2310, New Jersey enacted a pay transparency law that employers must follow.

This law was effective on June 1, 2025, and applies to employers with at least 10 employees who work at least 20 weeks during the calendar year.

Employers must disclose hourly wages, annual salary ranges, and benefits information in all job advertisements for new positions, transfers, and promotions.

These opportunities with salary ranges must be posted to the entire affected department.

How to Conduct Employment Background Checks in New Jersey

1. Create a Background Check Policy

Start by developing a detailed background screening policy before beginning the hiring process.

Make sure your policy aligns with federal, New Jersey, and local regulations and clearly defines which positions require background checks.

Include guidance for HR on maintaining compliance with all applicable laws.

Outline step-by-step instructions for HR staff to follow during screenings.

2. Train Hiring and HR Staff

Offer comprehensive training so your hiring team fully understands the legal requirements and internal procedures for running background checks.

3. Provide Proper Disclosure and Obtain Written Permission

Give candidates a separate, standalone disclosure explaining the background check process, in compliance with the Fair Credit Reporting Act (FCRA).

Secure written authorization from each candidate before ordering any background reports.

4. Work with a Trusted Screening Provider

Partner with a reputable background check company to ensure results are accurate, timely, and compliant with New Jersey laws.

5. Schedule Background Checks at the Right Time

Under New Jersey’s Opportunity to Compete Act (ban-the-box law), you cannot ask about criminal records on the initial job application.

Conduct background checks only after a first interview or once the applicant is considered qualified. This approach reduces unnecessary screenings and ensures compliance.

6. Tailor the Screening to the Job Requirements

Choose background checks that align with the specific duties of the position to avoid excessive costs and unnecessary screenings.

7. Review Results and Update the Candidate

Keep candidates informed throughout the process and carefully review the background check findings once received.

If the candidate moves forward, communicate the next steps, provide onboarding details, and confirm the start date.

8. Assess Criminal Convictions Individually

If the report reveals a criminal conviction, assess its relevance to the position and potential impact on workplace safety before making a decision.

New Jersey law and EEOC guidelines require an individualized review rather than automatic rejection.

9. Follow the Required Adverse Action Steps

If you decide not to hire based on the background report, you must follow the FCRA’s adverse action process:

• Send a Pre-Adverse Action Notice: Share the report and identify any issues found.
• Allow Time to Respond: Give the applicant a reasonable chance (typically five business days) to correct errors or provide additional context.
• Send a Final Adverse Action Notice: If you finalize the decision, issue a notice outlining their rights under the FCRA.

Get a New Jersey Background Check with iprospectcheck

New Jersey’s key industries—such as healthcare, transportation, finance, and manufacturing—face strict compliance and risk management demands.

At iprospectcheck, we provide reliable, compliant, and customized background screening services to support New Jersey employers in making informed hiring decisions.

Our team delivers detailed, legally compliant reports designed to meet the specific needs of your industry.

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.