What Do Employers Look For in a Background Check?

Employers conduct background checks on job candidates to ensure the employees they hire are safe, qualified, experienced, and competent.

Employment background checks are extremely common and are conducted by the vast majority of employers.

What employers look for in background checks varies based on the industry in which they operate, the duties of the position, regulatory standards, and other factors.

Background checks are not one-size-fits-all and instead differ based on the unique needs of the employers that conduct them.

This article provides information about what employers look for in background checks and the laws that govern the screening process.

What is an Employment Background Check?

An employment background check is a screening tool employers use to investigate the backgrounds, work history, educational history, credentials, criminal records, and other information about their applicants.

Employment background checks can vary in how comprehensive they are and might range from cursory reference checks and identity verification to in-depth investigations into multiple areas of their applicants’ backgrounds.

What an employer might look for on a background check will depend on the industry in which the company operates, any regulatory requirements, the specific duties of the position for which an applicant is being considered, the degree of responsibility the position involves, and other factors.

For example, an employer hiring for a safety-sensitive position in the transportation industry might have to comply with Department of Transportation (DOT) regulations for the types of information that must be checked, including the applicant’s driving record, pre-employment DOT drug test, performance on a pre-employment DOT physical, and more.

By contrast, an applicant for a job working as a line cook in a restaurant might undergo a basic background check to verify their identity, criminal records, work history, and experience but not much more.

Why Do Employers Run Background Checks on Applicants?

Employers typically conduct background checks on applicants for the following reasons:

1. Create a Safer Workplace

Creating and maintaining a safe workplace helps to reduce productivity losses caused by accidents, improves employee health, and protects the safety and wellness of employees and customers.

Employment background checks allow employers to screen out applicants who have a history of unsafe work behaviors and those who do not have the relevant knowledge and experience to perform their jobs safely.

2. Ensure Employees Are Qualified to Perform Their Jobs

Some positions require employees to have specific credentials, degrees, and experience to perform their duties.

For example, a licensed professional counselor (LPC) will need to meet the education, experience, and licensure requirements to practice in their field under the laws of their respective states.

Employers hiring for jobs that require specific qualifications conduct employment background checks to verify their applicants’ education, employment history, and credentials and ensure they are qualified to perform their jobs.

Ensuring a candidate is qualified helps to reduce negligent hiring risks and protect the employer’s clients and customers from potential harm.

3. Maintain Regulatory Compliance

Employers operating in certain regulated industries conduct background checks to ensure they maintain compliance.

Regulations governing certain industries might prohibit hiring employees with specific criminal convictions, mandate applicants pass pre-employment drug screens, and establish other background check requirements for employers.

4. Reduce Turnover

Having a strong employment screening policy demonstrates employers care about workplace safety and culture.

When employers have strong employment screening programs, it helps other employees to feel safe and confident that their co-workers are qualified for their jobs.

This can help to encourage employee loyalty and reduce turnover rates.

5. Mitigate Liability Risks

Employers that fail to investigate the backgrounds of their applicants run the risk of hiring incompetent, unqualified, unsafe, and potentially dangerous employees.

When an unsafe or incompetent employee engages in misconduct that causes harm and injuries to others, an employer that failed to check their background can be held liable for the actions of the employee in a negligent hiring lawsuit.

Employment background checks reduce liability risks by helping employers make informed hiring decisions.

6. Protect Confidential Information

Employers hiring for jobs through which an employee will have access to the confidential information of the employer and its customers conduct thorough background checks to weed out applicants whose backgrounds indicate a risk they might steal or misuse confidential information.

7. Protect the Company’s Brand

A company’s employees are the public face of its brand.

Hiring the wrong employees can cause severe damage to a company’s reputation and brand, leading to potentially substantial losses.

What Do Employers Look for in a Background Check?

What employers look for in background checks vary based on their industries and the requirements of their open jobs.

The most popular types of searches conducted by employers include the following:

• Criminal background
• Identity verification
• Education history
• Employment history
• Professional license verification
• Pre-employment drug screen

Certain industries, including healthcare, education, and transportation might require additional searches. Different industries require different levels of background checks.

For example, healthcare employers might perform the following additional searches on applicants:

• Department of Health and Human Services Office of Inspector General (OIG) check
• State sanctions checks
• General Services Administration (GSA) System of Awards Management (SAM) checks
• FACIS checks
• Sex offender registry checks

Transportation sector employers might conduct the following additional searches:

• DOT drug screens
• Motor vehicle records (MVR) checks
• DOT physicals
• Safety Performance Histories

Those in the social services and education sectors typically perform the following additional searches:

• Sex offender registry checks
• Abuse and neglect registry checks
• Credentials checks

Here’s some information about what employers might look for on some of these types of background checks.

Criminal History

Criminal history background checks for employment show whether an applicant has a criminal conviction or pending criminal case and reveal the following information for someone who has a criminal record:

• Criminal case number
• Offense date
• Type of offense
• Offense severity
• Disposition of the offense (if available)
• Disposition date (if disposed of)
• Sentence (if available)

An applicant’s criminal conviction won’t necessarily disqualify them. Instead, the impact of a conviction will depend on the duties of the job, the type of offense, and any regulatory requirements.

For example, a retail employer might turn down an applicant based on a theft conviction if the job involves handling money but might not deny employment to someone based on a minor drug possession conviction.

Employers will weigh the conviction against the duties of the job to determine whether it directly relates to the job before deciding not to hire an applicant based on that information.

Identity Verification

Most employers request identity verification to confirm the identities of their applicants.

This might involve Social Security Number (SSN) traces, which are preliminary searches consumer reporting agencies (CRAs) perform to verify information about the number supplied by the applicant.

An SSN trace shows the following information:

• Year the Social Security Administration (SSA) issued the number
• The validity of the SSN
• Names and aliases that have been used with the number
• Addresses that have been linked to the SSN
• Date of birth of the individual to whom the SSN was issued
• State in which the SSA issued the SSN

This information can then be used to identify other states in which a search should be conducted to gather more details about an applicant’s background.

Employment History

Most employers check the employment history applicants have reported to verify employment dates, past employers, and positions or titles held.

Employment verification will show the names and addresses of the companies for which an applicant has worked and the dates they worked for each employer. It will also show the job titles the applicant held at each company.

This type of background check allows employers to see whether an applicant has been honest when reporting their work history and experience.

Education History

Education verification confirms the information applicants have reported about their educational history and degrees.

An education verification report shows the names and addresses of the school or schools an applicant attended, their attendance dates, and whether any degrees or diplomas were conferred.

This type of background check is important when employers are hiring for jobs requiring specific degrees or certificates.

Professional License Verification

Employers hiring for jobs requiring a professional license conduct professional license verification to ensure their candidates are qualified for their jobs.

Professional license verification shows the following information about an applicant’s license:

• License number
• License type
• Date the license was issued
• State of issuance
• Whether the license is valid
• Expiration date
• Sanctions/discipline against the license

What Are Employers Prohibited From Looking At?

While employment background checks might include a variety of different searches, there are some types of information that employers might be prohibited from looking at or considering.

1. Expunged Criminal Records

Many states have expungement laws that allow individuals to request the courts to expunge certain criminal records.

Some states have automatic expungement laws that expunge certain criminal records after a specific time has passed.

When a criminal conviction is expunged, it is removed from the individual’s public criminal record.

CRAs can’t report expunged criminal records, and employers can’t ask about them or use them to make employment decisions.

2. Salary History

Many states have laws prohibiting inquiries into an applicant’s salary history.

Employers in those states can’t ask applicants about their past salary information or request information from past employers about the salaries they paid.

They also can’t use past salary information when determining how much to offer a candidate.

3. Credit History

Some states prohibit the use of an applicant’s credit report to make employment decisions.

However, certain industries might be excepted from credit history ban laws based on the requirements of the job.

For example, financial institutions hiring employees to work in the financial services industry are typically excepted from bans on pre-employment credit checks since the information directly relates to the duties of the positions they offer.

4. Military Service Records

Employers do not have access to an applicant’s military service records. Applicants can report their military service history.

5. Medical Records

An applicant’s medical records are confidential and can’t be accessed by employers or used to make hiring decisions.

Employers also can’t ask applicants about their real or perceived medical conditions during interviews beyond whether they can perform the tasks of their positions with or without accommodations.

6. School Records

Education verification shows the names and addresses of the schools an applicant attended, their attendance dates, and whether they earned any degrees.

However, employers will not have access to their applicants’ transcripts or grades without specific, signed authorization from the candidates.

How to Prepare for a Background Check

Applicants can take several steps to prepare for a background check, and it is a smart strategy to do so.

The best way for an applicant to get ready for a background check is to learn what an employer might find.

1. Check Your Credit

When applying for a job where your credit history might be relevant, it’s a good idea to pull copies of your credit reports from each of the three major credit reporting bureaus, including Experian, Equifax, and TransUnion.

When you obtain your credit reports, review them carefully and ask for any inaccurate information to be corrected.

2. Get Copies of Your Personnel Records

Learning what your past employers might say about you is important. Ask for copies of your personnel records from your former employers to get an idea of what they might say.

Most employers will only provide basic information about former employees, including their dates of employment, jobs held, and whether they are eligible for rehire.

3. Review Your Court Records

If you’ve had interactions with the criminal justice system, you should get copies of your court records and review them to determine what an employer might see.

Be prepared to provide mitigating information about any convictions you might have to show that you have rehabilitated since when the conviction occurred.

4. Be Honest

The most important thing applicants can do to prepare for background checks is to be honest in their resumes and applications.

Employers that conduct background checks can quickly identify discrepancies between what applicants have reported and what is included in their background check reports.

5. Watch What You Post on Social Media

Many employers conduct online searches of applicants.

While most states have laws prohibiting employers from asking applicants for access to their social media accounts, you should be aware that employers can still conduct searches and review publicly available information.

Review your online posts critically and remove anything that might be controversial before you begin your job search.

6. Request a Copy of Your Completed Background Check

Always request a copy of your background check once it is completed.

This allows you to review exactly what information is being reported about you so that you can ensure it is accurate and up-to-date.

iprospectcheck: Your Employment Background Check Partner of Choice

Employers conduct different types of background checks based on the jobs for which they are hiring and the industries in which they operate.

Employment background checks are important tools to help employers make smart hiring decisions while protecting the safety of their employees and customers.

To learn about the employment background checks offered by iprospectcheck and receive a free quote, contact 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.