Employment Background Checks: An Employer's Guide to Screening

What You'll Accomplish 

Running a fair, compliant background check is a defined process. Getting the steps right helps protect your business and helps you avoid compliance pitfalls.  

This guide walks you through what an employment background check is, what it can show, how long it takes, and the step-by-step process for running one that meets Fair Credit Reporting Act (FCRA) and Equal Employment Opportunity Commission (EEOC) requirements.  

You'll also learn the key laws that shape how checks are done, including ban-the-box rules and credit-check restrictions.  

By the end, you'll understand the key steps in the background check process and when to review applicable state and local rules. 

Hiring the right person is important. So is doing it fairly and compliantly. 

If you're a small business owner or HR leader without in-house legal counsel, the idea of running background checks can feel intimidating. What information are you allowed to obtain? What kind of consent do you need? What happens if something comes back that is concerning? And how do you make sure you're following the rules that apply where you're hiring? 

There’s a simple answer: Follow the process. The FCRA sets out the steps for running a check and taking action based on what you find. The EEOC provides guidance on using background checks fairly and avoiding discrimination. And while state and local laws add layers (ban-the-box rules, credit-check restrictions, lookback limits), the federal framework gives you a foundation to build on. 

This guide walks you through the whole process, step by step. You'll learn what a background check is, what it can cover, how to follow compliance, and what laws you need to know. If you're hiring across state lines or just want to make sure you're doing this right, this guide can help. 

What Is an Employment Background Check? 

An employment background check is a review of a candidate's history, such as criminal records, employment, education, and more, that an employer uses to help make a hiring decision. It’s run with the candidate's written consent, often through a third-party screening company called a consumer reporting agency (CRA). 

Background checks help employers verify what a candidate has told them, avoid negligent hiring, and meet industry-specific requirements (like checks for positions that involve driving, working with vulnerable populations, or handling finances). 

Employers should use checks fairly, consistently, and in compliance with federal, state, and local law. That means knowing what is allowed to be checked, getting proper consent, and following a clear process if the results raise concerns. 

Check out our glossary for a deeper dive into what a background check is and how it fits into hiring. 

What Shows Up on a Background Check? 

What you see on a background check depends on which checks you choose to run. Most employers tailor their screening to the role. For example, a driver might need a motor vehicle record check, while someone handling finances might undergo a credit check. 

Here's what different types of checks can show: 

The checks you run should match the responsibilities of the job and be applied consistently to all candidates for that role. Running unnecessary checks, or applying them unevenly, can expose you to discrimination claims and waste time and money. 

If you're hiring internationally or screening candidates with work history outside the U.S., international background screening adds complexity. Laws vary by country and locality, and turnaround times are typically longer.

How Long Does a Background Check Take?

Turnaround time depends on the type of check and where the information comes from. Some checks pull from databases and return results in minutes. Others require manual verification or requests to courts, schools, or past employers, and can take days or even weeks. If you need results faster, some screening providers offer expedited services, though they may cost more. 

Keep in mind that delays can happen. Courts may be backlogged, schools may be slow to respond, or past employers may not return calls. Build buffer time into your hiring timeline so a delayed check doesn't hold up your start date. 

How to Run an Employment Background Check: Step by Step

Running a compliant background check isn't complicated, but it does require following a specific process. Here's a general framework. 

Step 1: Set a Screening Policy

Before you run your first check, decide which checks you'll use for which roles and document that policy in writing. 

Your policy should answer: 

• Which checks will you run? Criminal, employment, education, credit, driving, etc.
• For which positions? Match checks to job responsibilities. Don't run a credit check for a role that doesn't involve finances and don't run a DMV check for roles that don't require driving.
• When will checks run? After a conditional offer is typically safest but confirm what's required in your state.
• How will results factor into hiring decisions? What constitutes a disqualifying result, and how will you assess relevance to the role?

The key is consistency. Apply the same checks and decision-making criteria to every candidate for the same role. Screening one candidate differently than another opens the door to discrimination claims. 

Step 2: Get Written Disclosure and Consent

Under the FCRA, you must give the candidate a standalone written disclosure that you're going to run a background check, and you must get their written authorization before you order the report. 

"Standalone" means the disclosure can't be buried in the job application or mixed with other forms. It needs to be a separate document that clearly states a background check will be conducted. 

The candidate then signs a separate authorization form giving you permission to run the check. 

This is an important FCRA requirement. Failing to follow these requirements may create compliance risk and could expose employers to claims. 

Step 3: Use an FCRA-Compliant Screening Provider

Most employers work with a third-party screening company, a consumer reporting agency (CRA), to run background checks. These companies specialize in gathering and verifying records, and a reputable one will help you stay compliant with federal and state law. 

When choosing a provider, look for: 

• FCRA compliance features (proper disclosures, adverse action support, audit trails)
• Accuracy and dispute-resolution processes (errors on reports can lead to legal claims)
• Multi-state and industry-specific expertise (especially if you hire in multiple locations or regulated industries)
• Turnaround time and customer support

Some PEOs, including TriNet, have integrated background check tools with screening providers, making it easier to initiate and track checks through your HR platform. But TriNet is not a consumer reporting agency and does not sell background checks. The service connects you to a reputable provider. 

Step 4: Review Results Fairly and Consistently

Once the report comes back, review it carefully and apply your screening policy consistently. 

If the report shows something concerning, like a criminal conviction or a discrepancy in employment history, don't make a snap decision. Consider: 

• Is it relevant to the job? A decade-old misdemeanor theft conviction might be relevant for a role handling cash, but not for a software developer.
• How much time has passed? The EEOC recommends using an individualized assessment that considers the nature of the offense, the time that's elapsed, and the duties of the job. Some states prohibit consideration of convictions occurring 7 or more years in the past, so consider limiting your check to the past 7 years only.
• Does the candidate have an explanation? Errors happen on background reports. As well, you will need to assess the relation between the conduct revealed by the background check and the candidate’s job duties in an individualized assessment. Give the candidate a chance to provide context or dispute inaccuracies before you act.

The EEOC has stated that using background checks in a way that creates an unjustified disparate impact on candidates based on race, color, national origin, sex, religion, disability, genetic information, or age (40+) can violate federal anti-discrimination law. That's why individualized assessments matter.  You must assess the relation between the job’s duties and the conduct at issue, considering things such as the nature and gravity of the offense, the time that has passed since the offense or conviction, the age of the employee at the time of the offense, and any evidence of rehabilitation (including but not limited to whether the candidate has been conviction-free since then and whether in the intervening years they have performed a job similar to the one being filled).  States and even some cities require employers to consider other and additional factors  

Step 5: Follow the Adverse Action Process

If you're inclined to make a hiring decision based on something in the background report—whether that's not hiring the candidate or rescinding an offer—you must follow the FCRA adverse action process. This is the step many employers miss, and it's one of the most important. 

Here's the required sequence: 

1. Send a pre-adverse action notice.
Before you take any adverse action (like withdrawing an offer), you must send the candidate: 

• A copy of the background report
• A document called "A Summary of Your Rights Under the Fair Credit Reporting Act" (the screening company provides this)

This gives the candidate a chance to review the report and dispute any errors. 

2. Allow a reasonable time to respond.

The FCRA doesn't specify an exact waiting period, but five business days is widely considered best practice. Some states may require longer. The point is to give the candidate enough time to gather documentation or contact the screening company if they believe the report is inaccurate. 

3. Send the adverse action notice.
After the waiting period, if you still plan to move forward with the adverse action, you must send a final adverse action notice that includes: 

• The name, address, and phone number of the consumer reporting agency that provided the report
• A statement that the screening company did not make the hiring decision and can't explain why you made it
• A notice that the candidate has the right to dispute the accuracy of the report with the screening company
• A notice that the candidate has the right to request a free additional copy of the report from the screening company within 60 days

This might feel like a lot of steps, but it's there to protect candidates from inaccurate information and to make sure they have a chance to respond before a decision is final. 

Step 6: Keep Records

The FCRA and EEOC require you to keep records of your hiring decisions, including background check reports and any documentation related to adverse actions. 

At a minimum, you should retain records for at least one year after you create them or take a personnel action (whichever is later). Some employers (including schools, state and local government agencies, and certain federal contractors) must keep records for two years. And if a discrimination charge is filed, you may need to keep records longer. 

Store background check reports securely and limit access to those who need it. These reports contain sensitive personal information and mishandling them can lead to privacy violations. 

Background Check Laws Employers Should Know

Background checks are governed by a mix of federal, state, and local laws. Here's what you need to know to stay compliant. 

The Fair Credit Reporting Act (FCRA)

The FCRA is the federal law that regulates how consumer reporting agencies collect, share, and use background check information. It applies anytime you use a third-party screening company to run a check. 

Key requirements under the FCRA: 

• Provide a standalone written disclosure and get written consent before running a check
• Follow the adverse-action process (pre-adverse notice, waiting period, adverse-action notice) if you disqualify a candidate based on the report
• Allow candidates to dispute inaccurate information
• Limit how far back certain information can be reported (see "How far back does a background check go?" in the FAQ)

The Federal Trade Commission (FTC) enforces the FCRA. You can find detailed guidance on the FTC's website at consumer.ftc.gov. 

EEOC Guidance on Background Checks

The Equal Employment Opportunity Commission (EEOC) provides guidance on using background checks fairly and avoiding discrimination. 

Under Title VII of the Civil Rights Act and other federal anti-discrimination laws, you can't use background checks in a way that denies equal employment opportunity based on a protected characteristic (race, color, national origin, sex, religion, disability, genetic information, or age 40+). 

The EEOC has raised particular concern about blanket criminal-history exclusions, which can have a disparate impact on certain groups. Their guidance recommends: 

• Using an individualized assessment before disqualifying someone based on a criminal record
• Considering the nature of the offense, the time that has passed, and the relevance to the job
• Giving candidates a chance to provide context or evidence of rehabilitation

You can read the EEOC's full guidance at eeoc.gov/background-checks. 

Ban-the-Box and Fair-Chance Laws

Many states and cities have enacted ban-the-box or fair-chance hiring laws that restrict when and whether you can ask about a candidate's criminal history. 

These laws vary widely. Some prohibit asking about criminal history on the initial application. Others delay when you can run a criminal background check until after a conditional offer. Some apply only to public employers; others apply to private employers above a certain size. And there's also a federal Fair Chance to Compete for Jobs Act that applies to federal agencies and contractors. 

The rules change often and differ by location. If you're hiring in multiple states or cities, verify what applies where you're hiring and build those requirements into your process. Don't rely on static lists—check current law or consult legal counsel. For example, if you're a federal contractor, additional criminal history limits may apply. 

Credit Check Restrictions

Some states and cities restrict or prohibit employment credit checks except for certain job categories (typically roles involving financial responsibility, access to sensitive data, or security clearance).  

If you're considering running a credit check, verify whether your state or city restricts them and whether the role qualifies for an exception.  

FCRA Lookback Limits

Under the FCRA, consumer reporting agencies generally can't report: 

• Non-conviction criminal records (arrests, dismissed charges, acquittals) older than seven years
• Bankruptcies older than ten years

However: 

• Criminal convictions have no federal time limit and can be reported indefinitely
• If the candidate's expected salary is $75,000 or more per year, the time limits on non-conviction records generally don't apply
• However, some states and cities have stricter lookback rules 

Make sure your screening provider follows both federal and state lookback requirements.

Get Support for Your Screening Process

A clear, consistent background check process can help support fair hiring practices and mitigate risk for your business. When you follow the FCRA and EEOC steps, get proper consent, use a reputable provider, review results carefully, and follow the adverse-action process, you're helping support a fair candidate experience and a more consistent screening process. 

If you're hiring across state lines, TriNet's PEO services include multi-state HR expertise and tools to help support hiring across multiple states. For smaller teams looking for support without the co-employment relationship or a bundled solution, TriNet HR Plus offers an HR support solution that still connects you to expert help.