What Makes You Fail a Background Check? Factors to Consider

Most employers now conduct some form of background screening during the hiring process, making it essential to understand what makes you fail a background check. A “failed background check” doesn’t always mean automatic disqualification; it often refers to adverse information that may raise concerns during evaluation.

Modern background checks go far beyond criminal records. They may include education verification, credit history, drug testing, and driving records. Each element helps employers assess whether a candidate is suitable for the role. Understanding what’s reviewed and why can help you navigate the process more confidently.

What is a Background Check?

A pre-employment background check is a detailed review of a candidate’s history, used by employers to verify the accuracy of application details and assess any potential risks to job performance or workplace safety. These checks typically begin after a conditional job offer and require the candidate’s consent, as mandated by the Fair Credit Reporting Act.

Modern background checks go beyond criminal records. Depending on the role and industry, they may include employment and education verification, license checks, credit reports (where allowed), and driving records. Each component helps employers make informed, compliant hiring decisions.

Reasons That Cause Background Check Failures

Criminal Record Issues

Criminal history remains one of the most significant factors in failing a background check. However, not all criminal convictions automatically disqualify candidates from employment. The Equal Employment Opportunity Commission requires employers to conduct individualized assessments, considering factors like the nature of the crime, when it occurred, and its relevance to the job.

Common criminal issues that raise concerns:

• Violent crimes (assault, domestic violence)
• Financial crimes (theft, embezzlement, fraud)
• Drug-related offenses
• DUI/DWI convictions for driving positions
• Pending criminal cases

The key is understanding that employers must fairly assess each situation rather than applying blanket policies that might constitute employment discrimination.

Employment History Problems

A poor employment history can significantly impact your chances of passing a background screening. Employers conduct employment verification to confirm the accuracy of information provided and assess your reliability as a worker.

Red flags in employment history include:

• Multiple unexplained gaps in employment
• Frequent job changes (job-hopping)
• Inconsistent information about job titles or dates
• Negative references from previous employers
• Termination for cause from previous positions

Many employers understand that legitimate employment gaps can occur due to family obligations, education, or economic factors. The key is being honest about these gaps and providing reasonable explanations when asked.

Education and Credential Verification Issues

Education history verification helps employers confirm that candidates possess the qualifications they claim. Problems arise when there are discrepancies between what candidates report and what background screening reports reveal.

Common education verification problems:

• False degree claims or degree mill diplomas
• Unaccredited institution credentials
• Incomplete programs listed as completed
• Professional licenses that are expired, suspended, or revoked
• Fake certifications or credentials

For positions requiring specific educational qualifications, these discrepancies can be immediate disqualifiers, especially in regulated industries like healthcare or education.

Failed Drug or Alcohol Tests

Drug and alcohol testing remains a standard component of many pre-employment screening processes, particularly for safety-sensitive positions. A failed drug test can immediately disqualify candidates from consideration.

Important considerations for drug testing:

• Different industries have varying requirements
• Medical marijuana use creates complex legal situations
• Prescription medications may cause positive results
• DOT-regulated positions have strict federal requirements
• Some states provide protections for legal cannabis use

Candidates should understand their rights regarding drug testing and be prepared to discuss any prescription medications that might affect test results.

Poor Driving Record

For positions involving vehicle operation or company car usage, driving records become crucial factors in hiring decisions. Employers review motor vehicle records to assess risk and ensure compliance with insurance requirements.

Driving record issues that cause problems:

• Multiple traffic violations
• DUI/DWI convictions
• License suspension or revocation
• Reckless or dangerous driving incidents
• Uninsured motorist violations

Even positions that don’t primarily involve driving may require occasional vehicle use, making driving records relevant to many job opportunities.

Credit History Problems

While many states restrict the use of credit history in employment decisions, certain positions still allow credit checks as part of the screening process. Poor credit history can be particularly problematic for financial, banking, or positions involving financial responsibility.

Credit issues that may affect employment:

• Poor credit scores
• Bankruptcy filings
• Excessive debt levels
• History of late payments
• Foreclosures or repossessions

Employers who conduct credit checks must follow applicable state laws and ensure that credit history is relevant to the specific job requirements.

Identity Verification Failures

Basic identity verification forms the foundation of all background checks. Problems with identity verification can delay or complicate the entire screening process.

Common identity verification issues:

• Social Security number discrepancies
• Address history inconsistencies
• Name variations or alias usage
• Immigration status complications
• Identity theft victim situations

These issues often require additional documentation and time to resolve, potentially delaying the hiring process.

Professional License Problems

Many professions require specific licenses or certifications to practice legally. Professional license verification ensures that candidates maintain current, valid credentials necessary for their roles.

License-related issues include:

• Expired professional licenses
• Suspended or revoked credentials
• Disciplinary actions against licenses
• Unlicensed practice in regulated fields
• Fake or fraudulent certifications

Industries like healthcare, law, real estate, and financial services typically have strict licensing requirements that candidates must meet.

Social Media and Online Presence Issues

While not always part of formal background checks, many employers review candidates’ social media profiles and online presence as part of their evaluation process.

Online presence red flags:

• Inappropriate or offensive content
• Evidence of illegal activities
• Discriminatory or hateful posts
• Poor professional judgment displayed online
• Privacy settings that reveal concerning behavior

Candidates should review their online presence and adjust privacy settings or remove problematic content before job searching.

Reference Check Problems

Reference checks provide employers with insights into candidates’ work performance, character, and professional relationships. Negative feedback from former managers or colleagues can significantly impact hiring decisions.

Reference check issues:

• Consistently negative feedback about performance
• Reports of workplace misconduct
• Concerns about reliability or attendance
• Interpersonal conflict patterns
• Inability to provide professional references

Building and maintaining positive professional relationships throughout your career helps ensure strong references when needed.

Legal Rights and Protections

Your Rights Under Federal Law

The Fair Credit Reporting Act provides important protections for job candidates undergoing background screening. These rights include:

• Right to notification: Employers must inform you if they plan to use background check information in hiring decisions
• Right to consent: You must provide written permission before any background check is conducted
• Right to receive copies: You can request copies of any background screening reports used in employment decisions
• Right to dispute: You can challenge inaccurate information and request corrections

The Adverse Action Process

When employers discover concerning information during background screening, they must follow a specific legal process before making final hiring decisions.

Pre-adverse action notice: If an employer is considering rejecting your application based on background check information, they must provide a pre-adverse action notice that includes:

• A copy of your background screening report
• A summary of your rights under federal law
• Contact information for the consumer reporting agency
• Opportunity to dispute inaccurate information

Waiting period: Employers must provide a reasonable waiting period (typically 5-10 business days) for you to respond to the pre-adverse action notice.

Final adverse action notice: If the employer decides not to hire you after the waiting period, they must send a final adverse action notice explaining their decision and your continued rights.

State and Local Protections

Many states and local jurisdictions provide additional protections beyond federal requirements:

• Ban-the-box laws: These laws restrict when employers can ask about criminal history, often requiring them to wait until later in the hiring process.
• Fair chance hiring: Some jurisdictions require employers to consider rehabilitation evidence and conduct individualized assessments before rejecting candidates with criminal history.
• Credit check restrictions: Many states limit when employers can consider credit history in hiring decisions, typically restricting it to positions with financial responsibilities.

How to Prepare for a Background Check

Before the Check

Before undergoing a background check, take time to review your own records to identify any potential issues an employer might see. This gives you the chance to prepare explanations and gather supporting documents such as character references, educational transcripts, or proof of rehabilitation. It’s also important to review your social media and online presence, removing anything unprofessional and adjusting privacy settings to present yourself in the best light.

During the Process

Be honest and transparent when completing job applications by providing accurate information about your history and being ready to explain any issues that may appear in your background check. If you receive a pre-adverse action notice, respond promptly with any corrections or helpful context. Most importantly, understand your legal rights and use the protections available to you if needed.

Addressing Common Issues

• Employment gaps: Prepare honest explanations for any gaps in your employment history, focusing on productive activities during those periods.
• Criminal history: If you have a criminal record, be prepared to discuss what you’ve learned from the experience and evidence of rehabilitation.
• Credit problems: For positions where credit checks are relevant, be ready to explain any financial difficulties and steps you’ve taken to improve your situation.

Industry-Specific Considerations

Different industries have varying requirements and standards for background screening:

• Healthcare: Requires checks against exclusion lists, state licensing boards, and often includes drug testing due to patient safety concerns.
• Financial services: Typically includes credit history reviews and checks for financial crimes due to fiduciary responsibilities.
• Transportation: DOT-regulated positions require specific drug testing, driving record reviews, and safety performance history.
• Education: Involves checks against child abuse registries and sex offender databases to protect student safety.
• Government: May require security clearance investigations with extensive background reviews for

Conclusion

Understanding what makes you fail a background check empowers both job seekers and employers to navigate the employment process with greater transparency and confidence. From criminal records to employment discrepancies, credit issues, and even social media activity, each element of a background check plays a role in shaping informed hiring decisions. By being honest, prepared, and aware of your rights, you can better position yourself for success while ensuring employers remain aligned with legal compliance standards.

Sapphire Check simplifies the background screening process with fast, accurate, and fully compliant checks tailored to your industry. Whether you’re an employer looking to reduce risk or a candidate wanting to understand what might appear in your report, we’re here to help. Contact us to support your employment process with informed hiring decisions and full legal compliance.

FAQs

What does fail mean on a background check?

“Fail” on a background check means adverse information was found that may disqualify you from employment, such as criminal convictions, employment discrepancies, or failed drug tests. Most professional screening companies avoid “pass/fail” language and instead report factual findings for employers to evaluate.

What is the hardest background check to pass?

Government security clearance investigations are typically the most stringent, involving extensive reviews of financial history, personal relationships, and often polygraph tests. Healthcare positions with controlled substance access and DOT transportation jobs also have particularly strict requirements.

Does AWOL show up on a background check?

Yes, AWOL (Absent Without Leave) from military service appears on background checks as part of your official military record and may result in a less-than-honorable discharge. The employment impact depends on the employer’s policies and job relevance.

What background check do most employers use?

Most employers use basic criminal history checks combined with employment and education verification, with about 95% conducting some form of screening. Many partner with a background check company for comprehensive multi-component background checks.