96% of employers conduct some form of background check on potential employees. That’s right—almost every job you apply for today will likely involve scrutinizing your background information. Understanding what employers look for in a background check can help you navigate the job market with confidence and transparency.

While federal guidelines exist, individual states may have additional rules governing background checks. Whether you’re a job seeker worried about what might show up or an employer wanting to implement thorough screening processes, this comprehensive guide covers everything you need to know about employment background checks.

What is an Employment Background Check?

An employment background check is a key part of the hiring process, used to verify a candidate’s identity, work history, education, criminal record, and other relevant details. This helps employers make informed, risk-aware hiring decisions and is often conducted after interviews but before a job offer is finalized.

The scope of background checks can vary based on the job, industry, and company policies. While some employers perform basic in-house screenings, others use third-party services for more thorough investigations, especially in roles where trust and safety are critical.

Why Do Employers Conduct Background Checks?

Employers invest time and resources in background screening for several important reasons:

1. Risk Mitigation: Background checks help identify potential risks before making hiring decisions, protecting the company from liability and ensuring workplace safety.
2. Verification of Qualifications: Employers want to confirm that candidates actually possess the experience, skills, and education they claim on their resumes.
3. Legal Compliance: In many industries, background checks aren’t just preferred—they’re legally required. The healthcare, education, and financial sectors have strict regulations about employee screening.
4. Preventing Negligent Hiring Claims: If an employee causes harm and the employer fails to conduct a reasonable background check, the company could face negligent hiring lawsuits.
5. Reducing Turnover: Thorough vetting helps ensure candidates are suitable for their roles, potentially reducing costly turnover and retraining.

Hiring managers rely on background checks to verify candidate information and protect the company’s reputation. With 84% of employers reporting resume misrepresentations, proper screening helps identify qualified candidates and avoid hiring individuals who may have falsified credentials.

The Complete Breakdown: What Employers Look For

1. Identity Verification

Before conducting a full background check, employers start by verifying a candidate’s identity. This includes confirming legal names, checking past and current addresses, and validating Social Security numbers. While you can withhold your SSN early in the hiring process, it’s required once you’re hired for payroll and tax purposes.

Identity verification is a critical first step that helps prevent fraud, protects the company, and ensures that all further background check results are linked to the correct individual.

2. Criminal Record Checks

Criminal background checks are among the most common screening elements. These checks typically search:

• County courthouse records
• State criminal repositories
• Federal court records
• Sex offender registries
• Terrorist watchlists

Criminal background checks may reveal both felony and misdemeanor convictions, with the scope varying by municipal and state laws and job requirements. Employers must follow EEOC guidelines, which prohibit blanket rejections based on criminal history. Instead, they must consider the nature of the offense, how long ago it occurred, and its relevance to the job before making a decision.

3. Employment History Verification

When verifying your work history, employers typically contact your previous employers to confirm:

• Dates of employment
• Job titles and positions held
• Responsibilities and duties
• Reason for leaving
• Eligibility for rehire

Employment verification helps confirm a candidate’s work history and spot inconsistencies. While many companies only share job titles and dates due to legal concerns, some may offer more details with a signed release. Gaps in employment can raise questions, so candidates should be ready to explain them honestly.

4. Education Verification

Because falsifying academic credentials is common, many employers verify a candidate’s education to confirm education history, degrees, graduation dates, fields of study, and any honors. This helps ensure applicants meet the job’s qualifications.

Employers may contact schools directly or use services like the National Student Clearinghouse. For international degrees or licensed professions, such as medicine, law, or accounting, additional checks are often required to validate certifications and ensure compliance with industry standards.

5. Credit History Checks

Financial background checks are common in banking, financial institutions, and roles involving money management. They help assess a candidate’s financial responsibility by reviewing a modified credit report showing financial history like payment history, debts, and bankruptcies, without revealing credit scores. Employers must get written consent, and some states restrict how this information can be used.

6. Social Media Screening

With about 67% of employers checking candidates’ social media, your online presence can influence hiring decisions. They often look for professionalism, consistency with your resume, and any concerning or inappropriate content.

However, social media screening comes with legal risks, as employers may unintentionally view protected information like race or religion. To stay safe, review your profiles from an employer’s perspective or adjust your privacy settings during your job search.

7. Driving Record Checks

Motor Vehicle Record (MVR) checks are common for jobs that involve driving company vehicles, transporting goods or people, or requiring a commercial driver’s license. These checks help employers assess a candidate’s safety and responsibility on the road.

An MVR report includes license status, traffic violations, accidents, DUIs, and suspensions. Even in roles where driving isn’t the main duty, some employers use driving records as a general measure of risk. A signed release is required before an employer can access your driving history.

8. Drug and Alcohol Testing

Substance testing is often part of background screening for roles in safety-sensitive industries, healthcare, transportation, manufacturing, and federal jobs. Employers use methods like urine, blood, or hair tests, each with different detection windows.

With changing marijuana laws, many companies are revising their drug testing policies. Employers must balance federal regulations, state laws, and privacy rights when implementing these programs.

Confidential Information and Restrictions

Employers must treat background check information with care, as it often includes sensitive data like credit history and criminal records. Mishandling this information can lead to misuse, discrimination, or legal issues.

The Fair Credit Reporting Act (FCRA) requires employers to get written consent before accessing a candidate’s credit report and to provide a copy of the report and a summary of rights if they plan to take adverse action. Additionally, employers must comply with state and local laws that may restrict how they use criminal records or prohibit questions about salary history.

By following these regulations and respecting applicant privacy, employers create a fairer, more transparent hiring process while protecting both the candidate and the company.

The Background Check Process Explained

The typical background check process follows these steps:

1. Disclosure and Authorization: The employer must inform you in writing that they intend to conduct a background check and obtain your signed consent.
2. Information Gathering: You’ll be asked to provide personal details, including name, address history, employment dates, and educational background.
3. Investigation: The employer or screening company verifies your information through database searches, contacting references, and reviewing public records.
4. Results Review: The compiled information is evaluated against the position requirements and company policies.
5. Pre-Adverse Action Notice: If negative information might impact your candidacy, you must receive a copy of the report and a summary of your rights before any adverse action is taken.
6. Decision and Notification: The final hiring decision is made based on the complete assessment.

Candidates should review their information carefully to avoid delays or discrepancies during background checks. Basic verifications take 2–3 days, while comprehensive or international checks can take up to two weeks or more. Delays often happen when records require manual retrieval or further investigation.

Mitigating Risks and Liability

Thorough background checks help employers reduce risks, avoid liability, and make informed hiring decisions. By identifying red flags like past violence or dishonesty, employers can better protect their workplace and team.

To stay compliant with EEOC guidelines and avoid discrimination claims, background checks must be applied consistently across all applicants. Using reputable screening services and keeping clear records supports legal compliance and helps defend against potential negligent hiring claims.

Creating a Safe Workplace

Background checks are an important tool for creating a safe workplace, helping employers identify potential risks such as a history of violence or false credentials. These checks support informed hiring decisions that promote a secure and trustworthy environment.

To reinforce safety, employers should also provide training on workplace policies, ensure clear reporting procedures, and maintain a zero-tolerance stance on violence and harassment. Ongoing screenings and proactive safety measures help build a culture where employees feel protected, respected, and empowered to thrive.

What Can Cause You to “Fail” a Background Check?

Background checks don’t follow a universal pass/fail system—each employer has its own criteria based on the role and company policies. Common red flags include serious criminal convictions, false information, poor credit for financial roles, failed drug tests, negative references, or problematic social media content.

While inconsistencies may raise concerns, they don’t always lead to disqualification. Employers often consider the full context and may give you a chance to explain any issues before making a final decision.

How to Prepare for a Background Check

Being proactive about your background check can help ensure the process goes smoothly. Candidates should conduct their own background checks to identify and address potential issues. Additionally, being prepared for employer requests, such as credit reports, is crucial for a smooth background check process:

1. Conduct your own background check: Order copies of your credit report, criminal record, and driving record to identify and address potential issues.
2. Be scrupulously honest on applications: Avoid the temptation to embellish your resume or cover gaps. Discrepancies between stated and verified information are major red flags.
3. Inform references in advance: Give your professional references a heads-up that they may be contacted.
4. Be prepared to explain issues: Have clear, concise explanations ready for any negative information that might appear.
5. Audit your social media: Review your online presence from an employer’s perspective and adjust privacy settings accordingly.
6. Address credit issues: If you have concerning items on your credit report, take steps to correct errors or be prepared with reasonable explanations.
7. Know your rights: Familiarize yourself with the Fair Credit Reporting Act (FCRA) and state-specific laws regarding background checks.

Conclusion

A well-structured background screening process is essential for making informed hiring decisions. By thoroughly reviewing an applicant’s background, including identity, employment history, education, criminal record, credit, and social media, employers can assess qualifications, reduce risk, and ensure a safe and trustworthy workplace. While issues may arise, a consistent and fair screening approach helps employers evaluate each candidate in context and maintain compliance with relevant laws.

At Sapphire Background Check, we simplify the background screening process with accurate, efficient services tailored to your industry. From verifying an applicant’s background to ensuring full legal compliance, we help you hire with confidence. Get in touch today to protect your workplace and streamline your hiring.

FAQs

What background checks do most employers do?

Most employers typically conduct professional background checks that include criminal history, employment verification, and education credentials, though specific industries may require more comprehensive screenings, including credit history or drug testing.

How far back do most criminal background checks go?

When examining an applicant’s criminal history, most background checks cover the past 7 years due to FCRA guidelines, though some states allow longer lookbacks, and certain industries may conduct more extensive searches.

What is the background check for pre-employment?

Pre-employment screening is a formal verification process that examines a candidate’s background before finalizing a job offer, helping the prospective employer ensure the candidate is suitable for the position and reduce hiring risks.

Who fails an employment background check?

Candidates who provide false information about past employers, have serious criminal convictions relevant to the position, or face other discrepancies that might trigger discriminatory background checks if not handled properly may fail a typical in-house check or third-party verification.