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Employment background checks: a guide for US employers

LiveRec EditorialUpdated

US federal rules as of 30 Oct 2026. Not legal advice; state and city rules may add requirements.

An employment background check, as covered in this guide, is a search of records about a candidate, such as identity, criminal history, education and past jobs, done by an employer or a screening company. In the US it is regulated by the Fair Credit Reporting Act (FCRA), the EEOC's anti-discrimination rules, and state and local fair-chance laws.

At a glance

  • Run checks after a conditional offer, for the same role the same way.
  • Get a standalone disclosure and written authorisation first.
  • If a result may cost someone the job, send pre-adverse then final adverse action notices.
  • Choose only the checks the job needs.

What types of background check are there?

TypeWhat it looks atTypical use
Identity / SSN traceName, address history, SSN matchAll roles; also guides which counties to search
Criminal recordsCounty, state, federal, national databases, sex offender registryMost roles, subject to fair-chance laws
Employment verificationDates, title with past employersSenior or trust roles
Education verificationDegrees and datesCredentialed roles
Professional licenceLicence statusHealth, finance, trades
Motor vehicle recordDriving historyDriving roles
Credit reportCredit historyLimited; several states restrict it
Drug screenLab testingSafety-sensitive roles; separate rules

When should I run one?

After a conditional offer, not before. Many fair-chance laws require it, and it also keeps checks off candidates you will not hire. See the conditional offer letter.

What law applies?

  1. FCRA (federal): standalone disclosure, written authorisation, pre-adverse and adverse action notices. Details.
  2. Title VII / EEOC: do not use records in a way that disproportionately screens out protected groups without job-related justification. EEOC advises individualised assessment of nature, time passed and job relevance.
  3. State and local fair-chance ("ban-the-box") laws: when you may ask, what you may consider, what process you must follow. Examples: California Fair Chance Act, NYC Fair Chance Act (California requires written notice and at least five business days to respond, Gov. Code 12952; NYC likewise; checked 2026-10-30).
  4. State mini-FCRA laws: extra disclosures in some states.

How do I run a check, in order?

  1. Decide which checks the role needs and write it down.
  2. Extend a conditional offer.
  3. Give the FCRA disclosure and get authorisation.
  4. Order through a screening company (a consumer reporting agency).
  5. Review results individually.
  6. Decide, or begin the adverse action process.

Full walkthrough: how to run a background check.

How long does it take, and what does it cost?

Many checks finish in one to three business days after consent; county courts and international searches take longer. Prices vary by provider and package: see cost.

How does LiveRec fit in?

LiveRec employers can order a background check from the candidate page; the candidate receives an email asking for consent, and nothing runs until they consent (order a background check). Background checks screen people; company verification is a separate process.

FAQ

Can I run a check without the candidate knowing? No. The FCRA requires disclosure and written authorisation for third-party reports.

How far back can criminal records go? Federal law limits reporting of some non-conviction records to seven years; convictions are not limited by the FCRA, but state laws may restrict (15 U.S.C. 1681c(a)(2), (a)(5); the seven-year limit does not apply to jobs with an annual salary of $75,000 or more, 1681c(b)(3); checked 2026-10-30)..

Do I need a screening company? If you use one you must follow the FCRA. Doing your own searches does not remove EEOC or state duties.

Are arrests usable? EEOC says an arrest alone does not prove conduct; many states bar using arrests. Check your state.

Next step: order a background check after a conditional offer.

Sources

  • FTC: https://www.ftc.gov/business-guidance/resources/using-consumer-reports-what-employers-need-know (accessed 30 Oct 2026)
  • EEOC, Background Checks: https://www.eeoc.gov/laws/guidance/background-checks-what-employers-need-know
  • EEOC arrest and conviction guidance: https://www.eeoc.gov/laws/guidance/enforcement-guidance-consideration-arrest-and-conviction-records-employment-decisions
  • 15 U.S.C. 1681b: https://www.law.cornell.edu/uscode/text/15/1681b

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.