How to Run a Background Check

Background checks reveal important information about people—criminal history, employment verification, education credentials, credit history, and more. Whether you’re hiring employees, screening tenants, investigating a business partner, or simply want to learn more about someone, understanding how to run background checks properly ensures you get accurate information while complying with legal requirements. This comprehensive guide explains the background check process, what information is available, and how to use background check results appropriately.

📋 Types of Background Checks

Background checks serve different purposes and include different components depending on your needs. Understanding the types helps you determine what’s appropriate for your situation.

Employment Background Checks

Employers run background checks on job applicants to verify qualifications and assess risk. Employment checks typically include criminal history searches, employment verification confirming past jobs, education verification confirming degrees, and sometimes credit reports for positions involving financial responsibility. Employment background checks are heavily regulated under the Fair Credit Reporting Act (FCRA) and various state laws, requiring written consent and specific procedures.

Tenant Screening

Landlords screen rental applicants to assess whether they’ll be reliable tenants. Tenant screening typically includes credit reports showing payment history, eviction records, criminal history, and rental history verification. Like employment checks, tenant screening is regulated and requires applicant consent. Landlords must follow fair housing laws and can’t discriminate based on protected characteristics.

Business Due Diligence

Before entering business relationships, companies investigate potential partners, vendors, and acquisition targets. Business background checks examine company and individual backgrounds, looking for litigation history, regulatory issues, reputation concerns, and financial stability. These checks help avoid problematic business relationships.

Personal Background Checks

Individuals sometimes want to check backgrounds for personal reasons—researching someone they’re dating, verifying information about someone they’ve met, or simply satisfying curiosity. Personal background searches have fewer legal restrictions but still can’t use certain databases without permissible purpose. Public record searches are generally available to anyone.

⚖️ Criminal Record Searches

Criminal history is often the most important component of background checks, revealing arrests, convictions, and pending charges that may be relevant to your decision. Understanding criminal search options helps you conduct thorough, appropriate screening.

County Criminal Searches

Criminal records are maintained at the county level where cases are prosecuted—each county courthouse maintains records of criminal cases filed there. Comprehensive criminal background checks search county court records in every county where the subject has lived, because crimes are prosecuted where they occur. This county-by-county approach is the most thorough method because county records are typically most current and complete. The challenge is identifying which counties to search—address history from the subject’s application and skip tracing helps identify all relevant counties where searches should be conducted.

State Criminal Databases

Many states maintain statewide criminal databases that aggregate records from courts across the entire state into centralized searchable repositories. State searches are more efficient than county-by-county searching because one search covers the whole state rather than requiring individual searches in dozens of counties. However, state databases have gaps—not all counties report completely to state databases, updates may lag behind county records by weeks or months, and some case types may not be included. State searches are useful for broad geographic coverage but shouldn’t completely replace county searches for important decisions where thoroughness matters.

National Criminal Databases

Commercial database companies compile criminal records from across the country into searchable national databases. National database searches provide broad geographic coverage quickly and affordably—searching millions of records in seconds. However, these databases have significant and well-documented gaps. They don’t include all jurisdictions uniformly, updates are inconsistent and may lag substantially behind actual court records, and records may be incomplete or contain errors. Use national databases for initial screening and broad coverage, but supplement with direct county and state searches for comprehensive checks where important decisions depend on the results.

Federal Criminal Records

Federal criminal records cover crimes prosecuted in federal courts—tax evasion, federal drug trafficking charges, immigration violations, bank fraud, and other federal offenses. Federal records are completely separate from state and county records and must be searched specifically through federal court databases. Federal criminal searches are appropriate for positions involving federal government interaction, regulated industries with federal oversight, positions involving financial responsibility, or any situation where federal crimes might be particularly relevant.

Sex Offender Registries

Sex offender registries are publicly searchable databases maintained by each state listing registered sex offenders. The National Sex Offender Public Website aggregates state registries into a single searchable interface. Registry searches identify registered sex offenders, which is particularly important for positions involving children, vulnerable adults, or access to people’s homes. Sex offender registry information is freely available to anyone online and should be checked for any position involving vulnerable populations.

💼 Employment Verification

Employment verification confirms that job applicants worked where they claim, in the positions they claim, for the time periods they claim. This catches resume fraud and helps assess candidate qualifications.

What Employment Verification Confirms

Standard employment verification confirms: employer name and location, dates of employment (start and end), job title or position, and sometimes salary and reason for leaving. Basic verification confirms the facts on a resume match reality. More detailed verification may include performance information if the former employer provides it.

How Verification Works

Verification typically involves contacting former employers directly—calling HR departments, using automated verification services, or sending written verification requests. Many large companies use third-party verification services that handle inquiries. Smaller companies may require direct HR contact. Verification takes time because it depends on employer response.

Common Issues

Employment verification encounters several common issues. Some employers only confirm dates and title, not performance. Companies that have been acquired or gone out of business are hard to verify. Self-employment is difficult to verify independently. Gaps in employment history may indicate undisclosed jobs. Discrepancies between stated and verified information require investigation.

Reference Checks vs. Verification

Employment verification confirms factual employment history. Reference checks go further, asking former supervisors about performance, skills, and suitability. Reference checks are more subjective and harder to conduct because former employers are often reluctant to provide detailed references. Both serve different purposes in evaluating candidates.

🎓 Education Verification

Education verification confirms degrees, certifications, and educational credentials that applicants claim. Credential fraud is surprisingly common, making verification important for positions requiring specific education.

What Education Verification Confirms

Verification confirms: school attended, dates of attendance, degree or credential earned, major or field of study, and graduation date. This catches people who claim degrees they didn’t earn, exaggerate their credentials, or attended schools without completing programs.

Verification Methods

Most colleges and universities respond to verification requests directly or through the National Student Clearinghouse, which maintains enrollment and degree records for most accredited institutions. Verification involves providing the subject’s name, dates, and claimed credentials and receiving confirmation of whether records match.

Diploma Mills and Fake Credentials

Diploma mills sell fake degrees from institutions that don’t actually educate students. Education verification catches diploma mill credentials by checking whether schools are legitimately accredited. Unaccredited institutions or schools with no physical presence are red flags. Verification protects against credential fraud that might otherwise go undetected.

International Education

Verifying international credentials is more complex because foreign schools have different systems and may be harder to contact. Credential evaluation services assess foreign education and compare it to U.S. equivalents. For positions requiring specific education, international credential evaluation ensures foreign degrees meet requirements.

💳 Credit Reports

Credit reports reveal financial history including payment behavior, debt levels, bankruptcies, and other financial information. Credit checks are appropriate for certain situations but heavily restricted by law.

When Credit Checks Are Appropriate

Credit reports are appropriate for: positions involving financial responsibility (handling money, access to financial systems), positions requiring security clearances, lending and credit decisions, tenant screening for rental applications, and insurance underwriting in some states. Credit checks aren’t appropriate for all positions—many states restrict or ban credit checks for most employment decisions.

What Credit Reports Show

Credit reports include: credit accounts and payment history, outstanding debts and credit utilization, public records (bankruptcies, judgments, tax liens), credit inquiries showing who has checked the report, and credit scores in some versions. This information reveals how someone manages financial obligations.

Credit Check Requirements

Credit checks for employment and tenant screening require: written consent from the subject before ordering the report, legitimate permissible purpose under the FCRA, and following adverse action procedures if the report leads to negative decisions. Employers and landlords can’t run credit checks without consent or use results improperly.

State Restrictions

Many states restrict employment credit checks. Some prohibit credit checks entirely except for specific positions. Others require that credit information be directly relevant to the job. Know the laws in your state before including credit checks in employment screening.

🔍 Other Background Searches

Beyond the major categories, various other searches may be relevant depending on your specific needs.

Driving Records

Motor vehicle records (MVRs) show driving history including violations, accidents, license status, and endorsements. MVRs are essential for positions involving driving—delivery drivers, truckers, company vehicle use. Driving records indicate risk and compliance with licensing requirements.

Professional License Verification

For licensed professions, verification confirms active licensure and checks for disciplinary actions. Doctors, lawyers, nurses, accountants, contractors, and other licensed professionals should have their credentials verified through licensing board records. This catches people who claim licenses they don’t have or who’ve had licenses revoked.

Civil Court Records

Civil litigation searches reveal lawsuits the subject has been involved in—either as plaintiff or defendant. This might reveal patterns of litigation, disputes with former employers, or other relevant information. Civil searches are particularly relevant for business due diligence and executive hiring.

Social Media Screening

Social media reveals public behavior and statements that may be relevant to employment decisions. However, social media screening raises discrimination concerns—you may see protected characteristics (religion, disability, pregnancy) that shouldn’t influence decisions. If conducting social media screening, have someone other than the decision-maker review profiles to avoid bias.

Drug Testing

While not technically a background check, drug testing often accompanies background screening for employment. Drug testing programs must comply with applicable laws including ADA protections for certain conditions and state marijuana legalization laws that may restrict testing.

⚖️ Legal Requirements

Background checks involve significant legal requirements, especially for employment and tenant screening. Understanding these requirements helps you conduct checks properly and avoid liability.

Fair Credit Reporting Act (FCRA)

The FCRA regulates “consumer reports”—background checks obtained from consumer reporting agencies for employment, credit, insurance, and tenant screening purposes. FCRA requirements include: obtaining written consent before ordering reports, providing required disclosures, following adverse action procedures if reports lead to negative decisions, and using information only for permissible purposes. Violations can result in significant penalties.

Consent Requirements

Employment and tenant screening background checks require written consent from the subject before ordering reports. Consent must be clear and conspicuous—a standalone document, not buried in other paperwork. The subject must understand what they’re consenting to. Running checks without proper consent violates the FCRA.

Adverse Action Procedures

If background check results lead to negative decisions (not hiring, denying rental), you must follow adverse action procedures. Before taking action: provide a “pre-adverse action” notice with a copy of the report and summary of rights. After the subject has time to respond, you may proceed with the “adverse action” notice explaining the decision and providing additional rights information.

Ban the Box Laws

“Ban the box” laws in many jurisdictions restrict when employers can ask about criminal history. These laws typically prohibit asking about criminal history on initial job applications, delaying criminal background checks until later in the hiring process. The goal is giving applicants a fair chance before criminal history becomes a factor.

Fair Housing Compliance

Tenant screening must comply with fair housing laws prohibiting discrimination based on race, color, national origin, religion, sex, familial status, and disability. Using criminal history for tenant screening requires individualized assessment rather than blanket policies, and policies must not have discriminatory effects. HUD guidance establishes standards for using criminal records in housing decisions.

🏆 Choosing a Background Check Service

Many services offer background checks with varying quality, coverage, and compliance. Choosing the right service affects your results and legal exposure.

Types of Services

Background check services range from consumer-grade websites offering instant results to professional screening companies providing comprehensive, compliant reports. Consumer services are cheaper but may have gaps and compliance issues. Professional services cost more but provide better coverage and handle legal requirements.

Accreditation and Compliance

Look for services accredited by the Professional Background Screening Association (PBSA), which indicates adherence to industry standards. Compliant services understand FCRA requirements, provide proper disclosures, and support adverse action procedures. Using non-compliant services exposes you to liability even if you didn’t know the service was non-compliant.

Database Coverage

Understand what databases and jurisdictions a service actually searches. “National” criminal searches may not cover all jurisdictions. Services should clearly explain their coverage and limitations. Better services offer county-level searching in addition to database searches.

Turnaround Time

Instant database searches return results quickly but miss information requiring manual court searches. Comprehensive searches that include county courts take longer—sometimes several days—but provide more complete results. Balance speed against thoroughness based on your needs.

Cost Considerations

Background check costs vary from $10-20 for basic instant checks to $100+ for comprehensive screening packages. Cheaper isn’t necessarily better—instant checks miss information that more thorough searches find. Consider what’s at stake when choosing between cheaper instant results and more expensive comprehensive searches.

📋 Running Your Own Background Checks

You can run background checks yourself by searching public records directly, though this requires more effort than using a service.

Court Record Searches

Many courts offer online case search systems where you can search criminal and civil records directly. Search in courts where the subject has lived. Court websites vary in accessibility and search functionality. Some charge fees for access; others are free. Direct court searching is time-consuming but finds information that database searches might miss.

Public Records Research

Public records available for direct searching include: property records through county assessors, court records through court websites, business filings through Secretary of State, professional licenses through licensing boards, and sex offender registries through state websites. Searching these sources yourself takes time but costs little.

Limitations of DIY

DIY background checks have limitations. You can’t access credit reports without being a credentialed business. Employment verification is harder without using established services. You may miss jurisdictions you don’t think to search. And DIY checks don’t come with compliance support—you’re responsible for understanding and following all legal requirements yourself.

When to Use Professionals

Use professional services when: you need credit reports (requires credentialing), you’re running checks regularly (efficiency matters), compliance is critical (employment, tenant screening), you need comprehensive multi-jurisdiction coverage, or the stakes are high enough to justify professional thoroughness. See background investigation services for professional options.

📝 Using Background Check Results

How you use background check information affects both legal compliance and fairness to subjects. Understanding proper use helps you make good decisions while avoiding liability.

Consistent Application

Apply background check standards consistently to all candidates to avoid discrimination claims and ensure fair treatment. If you reject candidates with certain types of criminal histories, apply that standard uniformly to everyone. Inconsistent application—rejecting some candidates but not others with similar backgrounds—suggests discriminatory treatment that could lead to legal liability. Document your standards and apply them evenhandedly regardless of who the candidate is.

Individualized Assessment

For criminal history in particular, EEOC guidance requires individualized assessment rather than blanket exclusion policies. Consider three key factors: nature and gravity of the offense (how serious was it?), time elapsed since the offense (how long ago?), and relevance to the specific position (does this offense relate to the job duties?). Someone with an old, minor offense unrelated to the position may be entirely suitable. Automatic disqualification based on any criminal history—without individualized assessment—may violate discrimination laws because criminal history impacts protected groups differently.

Accuracy Verification

Background check results aren’t always accurate. Database errors, common name confusion, and outdated information can all cause inaccurate reports. Subjects have the right to dispute incorrect information before adverse action is taken. Before making negative decisions based on background information, consider whether the information might be wrong—especially for subjects with common names where records may belong to different people entirely. Give subjects meaningful opportunity to explain or dispute concerning information before you act on it.

Documentation

Document your background check process, the decisions you make, and your reasoning for those decisions. If hiring or screening decisions are challenged later, documentation shows you followed proper procedures and made decisions based on legitimate, job-related factors rather than discriminatory ones. Keep records as required by law and according to your organization’s retention policies. Good documentation protects you if decisions are questioned.

Confidentiality

Background check information should be kept confidential and shared only with people who have legitimate need to know for making hiring or screening decisions. Don’t share background information with people not involved in the decision. Store reports securely and dispose of them properly when retention periods expire. Mishandling confidential information can create additional liability.

📋 Special Situations

Certain situations require special consideration when running background checks. Understanding these situations helps you handle them appropriately.

International Background Checks

Candidates who have lived, worked, or studied abroad present additional challenges. Foreign criminal records, education credentials, and employment history are harder to verify and may not be accessible through standard US background check services. International background checks require specialized providers with capabilities in relevant countries. Consider which countries need to be searched based on the candidate’s history and what level of verification is practical given available resources.

Juvenile Records

Juvenile criminal records are typically sealed or confidential and don’t appear on most background checks. Even if you could access juvenile records, using them for employment decisions raises significant legal and ethical questions. Generally, juvenile records shouldn’t be considered in employment screening, and asking about juvenile history may violate state laws.

Expunged and Sealed Records

Records that have been legally expunged or sealed shouldn’t appear on background checks, and subjects generally have the legal right to deny their existence. However, database lag sometimes causes expunged records to still appear. If a candidate indicates that records showing on their background check have been expunged, verify the expungement before making adverse decisions. Using properly expunged records against candidates may violate state laws.

Pending Charges

Arrests and pending charges—matters not yet resolved by the courts—raise complicated questions. Arrests without conviction shouldn’t be treated the same as convictions because people are presumed innocent. Some jurisdictions restrict using arrest records in employment decisions. Pending charges will eventually resolve one way or another. Consider how to handle pending matters fairly while protecting legitimate business interests.

Contractor and Volunteer Screening

Background checks aren’t just for employees. Contractors, volunteers, and others with access to your facilities, systems, or vulnerable populations may need screening. The same principles apply—get consent, use appropriate searches, follow legal requirements. Organizations working with children or vulnerable adults often have specific screening requirements mandated by law or licensing requirements.

⚠️ Common Background Check Mistakes

Many organizations make mistakes in their background check processes that create legal exposure or produce poor results. Avoiding these common mistakes improves your screening.

Inadequate Consent

The most common FCRA violation is improper consent. Consent must be: written, clear and conspicuous, on a standalone document (not buried in an application), and obtained before ordering the report. Consent forms that include waivers or releases of liability, or that are combined with other documents, may not comply with FCRA requirements. Use proper standalone consent forms.

Skipping Adverse Action Procedures

When background information leads to negative decisions, you must follow the two-step adverse action process: pre-adverse action notice before making the final decision (with report copy and rights summary), then adverse action notice after the decision is final. Skipping these steps or combining them into one notice violates the FCRA. Take time to follow the process correctly.

Over-Reliance on Database Searches

Instant national database searches are convenient and cheap, but they have gaps. Relying solely on database searches without county-level verification can miss significant criminal history. For positions where thorough screening matters, supplement database searches with direct county searches in relevant jurisdictions.

Blanket Exclusion Policies

Policies automatically excluding anyone with any criminal history, without individualized assessment, likely violate EEOC guidance and may constitute illegal discrimination. Criminal history policies should be tailored to specific positions and should consider the nature, timing, and relevance of offenses rather than applying blanket exclusions.

Inconsistent Practices

Running background checks on some candidates but not others, or applying standards inconsistently, creates discrimination liability. Establish clear policies about when background checks are required and what standards apply, then follow those policies consistently for all candidates in similar positions.

🏢 Industry-Specific Considerations

Different industries have different background screening requirements and considerations. Understanding industry-specific needs helps tailor your approach.

Healthcare

Healthcare employers must verify licenses, check for disciplinary actions, search healthcare exclusion lists (OIG, SAM), and often conduct drug testing. Working with patients creates heightened responsibility for thorough screening. Many healthcare positions have specific background check requirements mandated by state licensing or CMS conditions of participation.

Financial Services

Financial industry employers often conduct credit checks (appropriately, given the financial nature of work), verify licenses and registrations, and search regulatory databases for disciplinary actions. FINRA registration includes background investigation. Positions with fiduciary responsibility require appropriate financial history review.

Education

Schools and educational institutions working with children have heightened screening obligations. Many states mandate specific background checks for teachers and school employees. Thorough criminal screening with emphasis on offenses involving children is essential. Some positions require fingerprint-based FBI background checks.

Transportation

Trucking, delivery, and transportation employers must verify driving records, check for drug and alcohol violations through FMCSA clearinghouse (for CDL drivers), and comply with DOT requirements. MVR checks are essential. Some positions require specific DOT-mandated background check procedures.

Government and Security

Government positions and jobs requiring security clearances have extensive background investigation requirements conducted by government agencies. These investigations go far beyond typical employment screening, including interviews with references and neighbors, financial reviews, and foreign contact assessment. Private employers usually can’t replicate this level of investigation.

❓ Frequently Asked Questions