How to run a background check on an employee
US federal rules as of 30 Oct 2026. Not legal advice; state and city rules may add requirements.
To run a background check on an employee legally in the US: decide the checks the role needs, make a conditional offer, give a standalone FCRA disclosure, get written authorisation, order through a screening company, review results individually, and send adverse action notices if the report may cost the person the job.
At a glance
- Eight steps; most take a day or less, the check itself usually one to three business days.
- The two steps people skip: the standalone disclosure and the individual review.
The eight steps
| # | Step | Owner | Time |
|---|---|---|---|
| 1 | Define the checks per role in a written policy | HR | One-off |
| 2 | Make a conditional offer | Hiring manager | Day 0 |
| 3 | Send the standalone FCRA disclosure and authorisation form | HR or provider | Day 0 to 1 |
| 4 | Candidate completes and signs | Candidate | 1 to 2 days |
| 5 | Order the check from a screening company | HR | Same day |
| 6 | Receive the report | Provider | Commonly 1 to 3 business days; longer for some counties |
| 7 | Review each item individually | HR | 1 day |
| 8 | Hire, or start pre-adverse action | HR | Per outcome |
1. Define the checks per role
Write which checks each role gets and why (driving needs a driving record; cash handling may need criminal records). Use the same checks for the same role.
2. Make a conditional offer
Use the conditional offer letter. Fair-chance laws in many places require this order.
3. and 4. Disclose and get written authorisation
The disclosure must be a document by itself, clear and conspicuous, with nothing else on it (15 U.S.C. 1681b(b)(2)). Add authorisation in writing. Some states need extra language. The screening company usually supplies compliant forms.
5. Order the check
Use a consumer reporting agency. Certify to it that you have the disclosure, authorisation and will follow the adverse action rules. In LiveRec: open the candidate, choose Background check, pick the package and location, confirm; the candidate then receives an email asking for consent (guide). Ordering needs an active plan.
6. Wait for results
Most finish in one to three business days after consent. Delays are usually an unfinished candidate form, county court access, or foreign records.
7. Review each record
Ask three questions from EEOC guidance: how serious is the offence, how long ago, how does it relate to the job's duties. Document the answer. Do not reject on a simple "has a record".
8. Decide
If clear, proceed. If not, send the pre-adverse notice, wait, then decide.
Which checks should I pick?
Use the smallest set that answers the job's real risk. More checks mean more cost, more delay and more legal exposure.
What if I run it myself without a screening company?
Searching public court sites yourself avoids the FCRA, but not EEOC or state fair-chance duties, and accuracy risks are yours. Most employers use a provider.
Mistakes to avoid
- Adding extra text to the disclosure form.
- Running checks on some candidates but not others for the same job.
- Rejecting without individual review.
- Skipping the waiting period.
FAQ
Do I need the candidate's SSN? Providers typically ask for it to search; it is entered by the candidate on the provider's form.
Can I check a current employee? Yes, for employment purposes, with the same disclosure and authorisation rules.
What if the candidate refuses? You cannot run the check; you may decide the condition is unmet for everyone who refuses equally.
How long do I keep the report? Set a retention policy; EEOC rules require covered employers to keep hiring records for one year, longer if a charge is filed (29 CFR 1602.14, checked 2026-10-30). Keep reports secure and dispose of them properly (FTC Disposal Rule, 16 CFR 682.3).
Next step: order a background check.
Sources
- FTC: https://www.ftc.gov/business-guidance/resources/using-consumer-reports-what-employers-need-know (accessed 30 Oct 2026)
- 15 U.S.C. 1681b: https://www.law.cornell.edu/uscode/text/15/1681b
- EEOC: https://www.eeoc.gov/laws/guidance/background-checks-what-employers-need-know
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.