Finding the right candidate for an open position can be a challenging task for employers.
To screen out incompetent and unqualified applicants, the vast majority of employers conduct background checks before extending a job offer.
In this guide, we outline everything employers need to know about background checks, including how to conduct them and how to remain compliant while doing so.
Key Takeaways
- An employment background check is an investigation of an applicant’s or employee’s history to confirm they are qualified, competent, and trustworthy.
- Background checks might include identity verification, employment verification, education verification, a criminal history check, motor vehicle records search, credit check, professional license verification, or other searches.
- To avoid potential liability, employment background checks should be conducted in compliance with state and federal laws.
How Background Checks Are Changing for Employers in 2025
The landscape of background screening in 2025 is shifting dramatically due to emerging technologies and evolving legal frameworks.
To remain both competitive and compliant, businesses must pay close attention to several critical developments:
- AI and Automation: Artificial intelligence is reshaping the way companies conduct background checks and recruit candidates by accelerating data processing and improving precision.
States like Illinois and Colorado are setting the pace in AI regulation, introducing mandates for transparency and bias audits to combat discriminatory practices in employment.
Compliance with federal rules like Title VII and new CFPB guidelines is essential to ensure that AI-powered tools for hiring and workforce management are used responsibly and without bias.
Rather than relying on AI to make hiring decisions independently, companies should implement it as a support tool within a larger compliance framework and select vendors committed to fairness and legal alignment.
- Continuous Monitoring: More employers are turning to continuous background screening to keep track of employee records throughout their time with the company.
This proactive strategy helps identify risks early and supports a safer, more secure workplace.
- Digital Identity Verification: As remote work becomes more common, verifying candidate identities digitally has become a top priority.
Companies are turning to high-security methods such as biometric authentication and blockchain-backed platforms to confirm identity and prevent fraud.
- Social Media Screening: Reviewing applicants’ social media presence is gaining popularity as a way to evaluate cultural alignment and professional behavior.
Tools powered by AI can assess behavioral patterns online, separating one-off issues from recurring red flags, and offering employers a clearer picture of a candidate’s values and conduct.
- Enhanced Compliance Measures: With privacy regulations continuing to evolve, staying current on legal changes is no longer optional.
At the same time, new laws—such as those regulating AI use and expanding access restrictions on criminal records through “clean slate” initiatives—are increasing the complexity of compliance.
Employers must monitor these changes closely to avoid falling behind, particularly as enforcement ramps up heading into 2026.
By aligning with innovative and compliant screening providers such as iprospectcheck, employers can embrace these trends confidently—streamlining hiring while upholding both legal obligations and ethical standards.
What is a Background Check for Employment?
A background check for employment is an investigation into an applicant’s or employee’s history to ensure they are qualified, competent, and trustworthy.
Employers conduct pre-employment background checks to confirm what applicants have reported on their resumes, uncover convictions that could affect their ability to perform their jobs or threaten workplace safety, and verify they have the education and experience necessary for the position.
Employment background checks might also be conducted post-employment to confirm that current employees continue to meet the company’s standards.
What is Typically Included in a Background Check?
Many types of background reports might be included in an employment background check, depending on the position and required duties.
Most employers request the following types of screens for standard background checks:
- Identity Verification
- Criminal history
- Motor vehicle records (MVR) checks for driving positions
- Employment history
- Education history
- Professional license verification for positions requiring licensure
- Credit history
Here’s what each of these types of reports might include:
Identity Verification
An Identity Verification serves as a starting point in a comprehensive background screen. Taking steps to identify the names a person has used, date of birth, and places a candidate has lived and worked is the foundation of the background screening process.
Criminal History Check
A criminal background check for employment reveals if an applicant or employee has pending criminal charges or convictions.
If an applicant or employee has a pending criminal charge or conviction, the report includes the following details:
- Date of offense
- Offense type
- Offense severity (misdemeanor or felony)
- Case DispositionDisposition date
- If available, sentence information
MVR Check
Employers with jobs requiring driving frequently request driving records screens as a part of their employment background checks.
An MVR check shows the following information:
- Full legal name
- Date of birth
- License number
- License issuance date
- License class
- License expiration date
- Suspensions or revocations
- Traffic infractions
- Traffic crimes
Employment Verification
Employment verification confirms an applicant’s employment history as reported on their resume.
An employment verification report discloses the following information about an applicant’s past employment:
- Name of each employer
- Dates of employment
- Position/title held when available
Education Verification
Education verification confirms what an applicant has reported on their resume about their educational attainment and reveals the following information:
- Name of schools attended
- Dates of attendance or graduation
- Whether a diploma or degree was conferred
Professional License Verification
Employers with positions that require licensure often ask for professional license verification as a part of their employment background checks.
Professional license verification shows the following information about an applicant’s credentials:
- Type of license
- License validity
- License issuance date
- License expiration date
- License status
- Public discipline/sanctions
Employment Credit Check
Credit checks for employment might be conducted for jobs in the financial industry and positions involving access to a company’s intellectual property and money.
An employment credit check reveals the following details:
- Payment history
- Debt-to-income (DTI) ratio and available credit
- Any bankruptcies within the past seven to 10 years
- Collection accounts
- Other inquiries made
- Indicators of financial distress
Benefits of Employment Background Checks
1. Protect Workplace Safety
Employment background checks reveal convictions that could indicate an applicant would be a threat to a company’s current employees, customers, and members of the public.
By conducting background checks, you can reduce the risk of hiring someone who could threaten workplace safety.
2. Ensure Legal Compliance
Companies operating within regulated industries might be required to conduct background checks to ensure their applicants and employees meet regulatory standards.
For regulated companies, including DOT-regulated employers, conducting background checks is one way to ensure legal compliance.
3. Establish A Culture of Trust and Transparency
Employment background checks help companies establish a culture of trust within their workforce.
Employees at companies that conduct background checks trust their fellow employees meet company standards and are safe.
Background checks also help companies to build trust relationships with clients and contractors. When customers know a company’s employees have undergone background checks, they might feel more confident in their ability to trust them.
4. Mitigate Liability Risks
Employers can be liable for the actions of their employees when they intentionally or negligently cause injuries to others while working.
Background checks identify applicants who might be unsafe, allowing employers to screen out potentially dangerous applicants who could pose a liability risk.
Failing to check the background of an employee who later goes on to harm others could result in lawsuits and negligent hiring/retention liability.
5. Protect the Company’s Brand and Reputation
Companies rely on their reputation to build a loyal customer base and expand their operations.
Reputational damage can lead to losses of customers and profits, making it important for employers to take steps to protect their brand and reputation.
Conducting background checks is a good measure to prevent reputational damage from the negligent or intentional acts of employees.
6. Uphold and Maintain High Standards
Businesses write policies to establish the standards they want to achieve and maintain.
Conducting employment background checks helps companies confirm their employees meet their standards and can be trusted to perform the duties of their jobs.
Know Before You Hire
When Should I Screen Employees?
An employment background check reveals an individual’s criminal record, employment history, education, and other details at a specific moment.
Certain information in a background check can change over time, which is why employers might complete employment screenings at different points in the employer-employee relationship.
1. Pre-Employment Screening
Completing background checks on candidates who an employer has determined are otherwise qualified is a good idea. Some jurisdictions require that background checks be performed only after an offer for employment has been made and accepted contingent upon the results of the background check,
Many employers conduct pre-employment background checks once they have interviewed several candidates and narrowed down their list to a few qualified individuals.
A pre-employment background check can then confirm that a candidate is trustworthy, qualified, and a good fit for the role.
2. Annual Background Checks
Annual rescreening is required in certain regulated industries, including transportation. Companies regulated by the Federal Motor Carrier Safety Administration (FMCSA) must conduct annual driving records checks and drug screens of their drivers under Department of Transportation (DOT) regulations.
In other industries, conducting annual screenings is also a good idea to verify whether anything has changed.
For example, an employee might have received a new criminal conviction since being hired, which could impact the business.
It’s a good idea to complete an annual screening just before an employee’s annual performance review to confirm the employee continues to meet the company’s standards.
3. Screening Before Promotions
Another time it makes sense to rescreen a current employee is when they are up for a promotion.
This helps to confirm the employee’s qualifications for the position.
4. Random Drug Screens
In addition to other types of post-hire background checks, companies with drug-free workplace policies might benefit from instituting random drug screens.
This helps to reduce substance abuse and protect workplace safety.
iprospectcheck: Your Dependable Partner for Compliant Background Checks
Employment background checks allow employers to feel confident in their hiring decisions.
By conducting these vital checks, your company can ensure its employees maintain high standards, are trustworthy, and are qualified to perform their jobs.
At iprospectcheck, we have extensive experience conducting employment background checks for companies in every state and always return accurate, current, and FCRA-compliant background check reports.
To learn more about our background checks and receive 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.
