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Hiring Processes & Workflows

Background Checks: A Recruiter's Guide

8 min read
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Jeff Hammitt

Background Checks: A Recruiter’s Guide

You’re ready to make an offer. The candidate is perfect - great interview, good references, everything checks out. But wait - have you done a background check?

The problem: Most recruiters don’t understand background checks. They either skip them (risky) or do them wrong (illegal). Both can lead to serious problems.

The solution: Understand what background checks are, when you need them, and how to do them legally. You’ll protect your company and make better hiring decisions.

“Background checks aren’t about finding reasons to reject people - they’re about verifying that candidates are who they say they are and can do what they claim. Do them right, and you protect everyone.” - Lester Rosen, author of “The Safe Hiring Manual”

Why Background Checks Matter

The reality: People lie on resumes, hide criminal history, and misrepresent their qualifications. Background checks help you verify what candidates told you.

The numbers:

  • 85% of employers discover lies or exaggerations in resumes
  • 10% of background checks reveal criminal history
  • 30% of resumes contain false information
  • Background checks reduce bad hires by 35%

Real example: A candidate says they have a college degree. Background check shows they never graduated. You just caught a lie that could have led to a bad hire and potential legal issues.

What Are Background Checks?

What it sounds like: Criminal record checks.

What it actually means: Verification of candidate information including employment history, education, criminal records, and other relevant background information.

Types of Background Checks

1. Criminal Background Checks

  • What: Check for criminal history
  • Scope: Varies by state and role
  • Duration: Usually 7-10 years
  • Purpose: Verify candidate doesn’t have disqualifying criminal history

2. Employment Verification

  • What: Verify past employment
  • Scope: Dates, titles, responsibilities
  • Duration: Usually 7-10 years
  • Purpose: Confirm work history is accurate

3. Education Verification

  • What: Verify degrees and certifications
  • Scope: Schools, degrees, dates
  • Duration: All education claimed
  • Purpose: Confirm qualifications are real

4. Credit Checks

  • What: Check credit history
  • Scope: Credit score, payment history
  • Duration: Usually 7 years
  • Purpose: For roles handling money or sensitive financial data

5. Driving Record Checks

  • What: Check driving history
  • Scope: Violations, accidents, license status
  • Duration: Usually 3-7 years
  • Purpose: For roles requiring driving

6. Professional License Verification

  • What: Verify professional licenses
  • Scope: License status, expiration, complaints
  • Duration: Current status
  • Purpose: For licensed professionals (doctors, lawyers, etc.)

Real example: You’re hiring a financial advisor. You do:

  • Criminal background check: No issues
  • Education verification: Degree confirmed
  • Credit check: Good credit score
  • Professional license: License is current and valid

This gives you confidence they’re qualified and trustworthy.

When to Do Background Checks

Do background checks for:

  • All final candidates - Before making an offer
  • Roles requiring trust - Handling money, sensitive data
  • Licensed professionals - Doctors, lawyers, etc.
  • Roles with security clearance - Government, defense
  • Driving roles - Delivery, sales, etc.
  • Any role where it’s relevant - If it matters for the job

Don’t do background checks:

  • Too early - Only for final candidates
  • For every candidate - Only serious candidates
  • Without consent - Always get permission first
  • Illegally - Follow all laws and regulations

Real example: You’re hiring a software engineer. You do a criminal background check (standard) and education verification (they claimed a degree). You don’t do a credit check - not relevant for the role.

FCRA (Fair Credit Reporting Act):

  • Requires: Disclosure and consent before background check
  • Requires: Adverse action process if you reject based on results
  • Applies to: All background checks through third-party services

EEOC Guidelines:

  • Requires: Background checks must be job-related
  • Requires: Can’t discriminate based on protected characteristics
  • Requires: Individual assessment for criminal history

State Laws:

  • Ban the Box: Some states restrict when you can ask about criminal history
  • State-specific: Each state has different rules
  • Local laws: Some cities have additional restrictions

Best practices:

  • Always get written consent
  • Use job-related criteria only
  • Give candidates a chance to explain
  • Follow adverse action process
  • Document everything

Real example: You find a criminal record. You can’t automatically reject them. You need to:

  1. Consider if it’s job-related
  2. Consider how long ago it was
  3. Consider the nature of the offense
  4. Give them a chance to explain
  5. Make an individual assessment

How to Conduct Background Checks

Before doing anything:

  • Disclose: Tell candidate you’ll do a background check
  • Explain: What you’ll check and why
  • Get consent: Written consent is required
  • Provide notice: Give them a copy of their rights

What to say:

  • “We’d like to do a background check as part of our hiring process”
  • “This will include [criminal history/employment verification/etc.]”
  • “We need your written consent to proceed”
  • “Here’s a copy of your rights under the FCRA”

Step 2: Choose a Provider

Options:

  • Third-party services: Checkr, GoodHire, HireRight
  • In-house: If you have the resources
  • Hybrid: Some in-house, some third-party

What to look for:

  • Compliance: FCRA compliant, follows all laws
  • Accuracy: Reliable, accurate results
  • Speed: Fast turnaround time
  • Cost: Reasonable pricing
  • Support: Good customer service

Real example: You use Checkr for background checks. They’re FCRA compliant, provide results in 1-2 days, and cost $30-50 per check. They handle all the legal requirements, so you don’t have to.

Step 3: Review Results

What to look for:

  • Criminal history: Is it job-related? How recent?
  • Employment gaps: Do dates match what candidate said?
  • Education: Are degrees and certifications verified?
  • Red flags: Anything concerning or inconsistent?

What to consider:

  • Job relevance: Is the issue relevant to the role?
  • Time: How long ago did it happen?
  • Severity: How serious was it?
  • Pattern: Is it a one-time thing or a pattern?

Real example: Background check shows a DUI from 8 years ago. The role is a software engineer with no driving required. The DUI is old, not job-related, and they have a clean record since. Probably not a deal-breaker.

Step 4: Adverse Action Process (If Needed)

If you’re rejecting based on background check:

  1. Pre-adverse action:
    • Send candidate a copy of the report
    • Give them a chance to dispute or explain
    • Wait 5-7 days before making a decision
  2. Individual assessment:
    • Consider if it’s job-related
    • Consider how long ago it was
    • Consider the nature of the offense
    • Consider their explanation
  3. Final adverse action:
    • If you still reject, send final notice
    • Explain their rights
    • Provide contact information for the background check company

Real example: Background check shows a theft conviction from 5 years ago. The role involves handling money. You send pre-adverse action notice. Candidate explains it was a mistake, charges were dropped, and provides documentation. You review and decide to proceed with the offer.

Common Background Check Mistakes

Mistake 1: Not getting consent

  • Problem: Illegal, violates FCRA
  • Solution: Always get written consent before checking

Mistake 2: Automatic rejection

  • Problem: Rejecting based on any criminal history, regardless of relevance
  • Solution: Individual assessment, consider job relevance

Mistake 3: Not following adverse action process

  • Problem: Violates FCRA, can lead to lawsuits
  • Solution: Always follow the process if rejecting based on background check

Mistake 4: Checking too early

  • Problem: Wasting money on candidates you won’t hire
  • Solution: Only check final candidates

Mistake 5: Not verifying information

  • Problem: Assuming background check company caught everything
  • Solution: Review results carefully, verify inconsistencies

Mistake 6: Ignoring state laws

  • Problem: Violating state-specific requirements
  • Solution: Know your state’s laws, follow them

Real example: You automatically reject anyone with a criminal record, regardless of what it is or when it happened. That’s illegal discrimination. You need to do individual assessments.

What to Check by Role

For all roles:

  • Criminal background check (if allowed by state)
  • Employment verification
  • Education verification (if degree required)

For financial roles:

  • Credit check
  • Professional license verification
  • More thorough criminal check

For driving roles:

  • Driving record
  • Criminal background check
  • Employment verification

For licensed professionals:

  • Professional license verification
  • Education verification
  • Criminal background check
  • Employment verification

For security-sensitive roles:

  • Comprehensive criminal check
  • Credit check
  • Employment verification
  • Education verification
  • Additional security checks

Real example: You’re hiring a delivery driver. You check:

  • Driving record: Clean
  • Criminal background: No issues
  • Employment verification: Confirmed

You don’t check credit - not relevant for the role.

Resources and Tools

Background check services:

  • Checkr - Popular, FCRA compliant
  • GoodHire - Easy to use, good support
  • HireRight - Comprehensive, enterprise-focused
  • Sterling - Large provider, many services

Legal resources:

  • FCRA Guide - Understand FCRA requirements
  • EEOC Guidelines - Criminal history and employment
  • State-specific laws - Know your state’s requirements
  • Legal counsel - Consult with employment lawyer

Training resources:

  • Background check courses - Learn best practices
  • Compliance guides - Stay updated on laws
  • Case studies - See how others handle it

Next Steps

For recruiters:

  1. Understand the law - Know FCRA, EEOC, and state requirements
  2. Choose a provider - Find a reliable, compliant service
  3. Create a process - Standardize your background check process
  4. Train your team - Make sure everyone follows the law
  5. Document everything - Keep records of all background checks

For hiring managers:

  1. Provide input - Tell recruiters what to check
  2. Review results - Look at background check findings
  3. Make decisions - Use results in hiring decisions
  4. Follow the law - Don’t discriminate, do individual assessments

For candidates:

  1. Be honest - Don’t lie, background checks will catch it
  2. Understand your rights - Know what you can dispute
  3. Provide documentation - If there are issues, explain with proof
  4. Ask questions - Understand what’s being checked

Conclusion

Background checks are an important part of the hiring process. Do them right, and you’ll verify candidate information and protect your company. Do them wrong, and you’ll face legal issues and make bad hires.

Remember:

  • Always get written consent before checking
  • Use job-related criteria only
  • Follow FCRA and EEOC guidelines
  • Do individual assessments, not automatic rejections
  • Follow adverse action process if rejecting
  • Document everything

Do this right, and you’ll make better hiring decisions while staying compliant with the law.

Jeff Hammitt

Jeff Hammitt

Recruiting Expert

Jeff Hammitt is a recruiting expert with years of experience in talent acquisition and building high-performing teams.

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