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What Is a Criminal Background Check?
Background checks should remain an integral part of your hiring process. Learn why background checks are important and what type of information you can gain from them.
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Conducting background checks helps companies avoid dangerous, fraudulent, and reckless behavior from job candidates and employees. Background checks are a common part of the employee recruiting process; they verify a job candidate’s identity and credentials, and flag any concerning or criminal history that could impact employee performance. If you are a small business owner hiring new employees, you should run background checks on candidates. This practice will ensure you are bringing on qualified professionals.
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What is a criminal background check?
Criminal background checks are primarily completed after a preliminary job offer has been extended but before the candidate begins work. Employers run background checks on job candidates to ensure that there are no red flags. They also use them to determine the validity of the information the candidate provided in their application and throughout the interviewing process.
Employers conduct background checks for many reasons. But, the data shows that an overwhelming percentage of employers conduct them. Ninety-five percent of employers say they conduct some kind of pre-employment background screening, according to the Professional Background Screening Association.
“Most employers that do background checks do at minimum a criminal background check because they want to make sure that they’re not creating risk for the organization and hiring someone who, for example, may have the potential for violence and may cause harm to either the folks at the workplace or to the public,” said Susan Corcoran, an employment attorney with Jackson Lewis P.C.
What do background checks cover?
There are many types of data that make up most background checks. Typically, the same information is present on most background checks. For example, here are the most common data points in pre-employment and/or general employment background checks:
- Full legal name (and previous aliases or last names)
- Social Security number
- Date of birth
- Criminal conviction record
- Previous addresses
“Typically, a criminal background check for employee purposes is going to look for felony and misdemeanor convictions at the country level courts where an individual has lived and potentially worked,” Kristen Faris, senior vice president of customer success, solutions and partnerships at Checkr, told business.com. Factors such as job type, the company’s risk level and whether an industry is regulated can have an impact on the background check’s scope, according to Faris.
In the U.S., employers who use a third-party reporting agency to conduct a background check are required to comply with the Fair Credit Reporting Act (FCRA). The FCRA requires employers to gain consent from a candidate before conducting a background check. It also requires employers to disclose any potentially disqualifying information that surfaces so the candidate has a chance to dispute it.
Note that if you run a background check on a subject who has lived in other countries or is working in another country, additional rules, regulations and stipulations apply. Most significantly, the U.K. and parts of Europe are now strictly governed by a privacy data law known as the General Data Protection Regulation (GDPR) guidelines, which apply to all background checks affecting European Union citizens.
Why are criminal background checks important?
Background checks aren’t just a pointless step to add to your hiring process; they are valuable to organizations of all sizes. “The main reason is to minimize risk to hiring a new set of people and confirming, the best that you can, that you know who you’re hiring,” said Corcoran.
Here are some of the most important reasons why you should conduct background checks on future and current employees:
Improve or ensure the quality of hire.
Although you might like to think applicants are telling you the truth about their history and qualifications, ResumeLab found that 7 in 10 people admitted to lying on their resumes. Pre-employment screening can help verify that potential new hires have provided accurate information throughout the hiring process.
Protect employees, customers and the company.
Employers have compliance requirements like OSHA to keep their employees and customers safe. Maintaining workplace safety and reducing the possibilities for injury or property damage is critical. Failure to do your due diligence can bite you in the back in the form of lawsuits and court cases. When deciding whether to hire employees with convictions, employers should pay attention to state and local regulations, e.g., Clean Slate and Ban the Box laws that require them to consider an array of factors during the hiring process.
Maintain your company reputation.
It can take years to build a great company reputation. However, that reputation is easy to lose overnight if organizational leaders are not doing their jobs. Background checks help ensure that anyone who joins your company will represent it well.
Reduce costs related to employee management.
Although some employers might be concerned about employee theft, the cost of a bad hire can be measured in other ways. Bringing in someone without thoroughly vetting them could increase your insurance premiums, workplace absenteeism, employee turnover, compensation expenses, cybersecurity risks and other work-related claims.
Comply with employment laws and regulations.
In some cases, employers are required by law or industry stipulations to conduct a background check on a candidate prior to employment. This may apply to jobs in healthcare, education, law, financial services and other jobs that involve privileged access to sensitive information, money or children. [Read related article: What Is a Department of Transportation (DOT) Background Check?]
How far back do most background checks go?
How far back background checks go depends on the type of background check and the state where it is conducted. “If an employer is using a third-party reporting agency, generally speaking, it’s only going to report a seven-year lookback period for convictions,” said Corcoran.
We have outlined the primary types of checks in the table below to lay out the timeframe and related exceptions.
Type of background check | Length of time covered |
|---|---|
Pre-employment background check | Pre-employment background checks usually span seven years of criminal and court records. But, they can cover a longer time span depending on compliance and industry laws, what is being searched for, and which state the search is conducted in. |
Professional license verification | Generally, this check does not have a limit on time span, as verifications may need to be made throughout the subject’s lifetime. |
Employment history and education | Generally, this check does not have a limit on time span. |
Credit history check | Employment credit checks go back seven or 10 years, depending on the laws of the state where the candidate lives. Note that more states are beginning to restrict or narrow the scope of information related to credit data that can be reported on and for how long. Employers typically will not be able to access a candidate’s credit score. |
Driving history | Driving history checks may go back 3 to 10 years, depending on the state. |
Social Security verification | Some background checks are designed simply to verify the SSN of the candidate to ensure that the person is who they say they are. These generally do not have a limit on time span. |
Drug testing | Although drug tests do not check a person’s history, they are common in pre-employment and current employment relationships. |
There is a school of thought referred to as the seven-year lookback rule. Some states have taken a hard stance on limiting employers’ views of criminal convictions. Although credit checks, governed under the FCRA, allow creditors to look further back in some cases, there is a growing push to limit the criminal records employers can check to the past seven years. Though the exact laws on this vary from state to state, they fall under the umbrella of the Ban the Box movement; this push seeks to end the stigma of conviction or arrest records for job candidates.
How long do criminal background checks take?
Although many background checks can be processed and return results in 3 to 5 days, some can take longer. For example, FBI background checks usually take around 30 days to complete. Although some federal background checks can be processed more quickly, it is best to plan for the comprehensive review that requires a 30-day wait.
Another delay in processing background checks, either for pre-employment purposes or for current employees, has to do with the number of states where the subject has lived. The more states they have lived in, the more databases there are to query and the longer it can take to compile the necessary data. This is the most common delay in background checks.
Also, some background checks require several different data points (e.g., criminal background and credit checks). The more requests you place within a single background check, the longer the process might take.
How do you conduct a criminal background check?
First, you need to establish the steps that your company should follow for background checks on job candidates or current employees. We highly recommend you create and maintain a criminal background check policy that lives in your employee handbook. You can find extensive templates online, but your company policy for criminal background checks should at least include these steps:
- Get the subject’s acknowledgement. Inform the subject that you intend to process a background check and have them sign a release. Never move forward with the background check before you have the subject’s signature. Spoken approval is not adequate acknowledgment; you need it in writing. This federal law is governed by the FCRA.
- Stick to the agreed-on scope. Ensure that the background check matches the details and description of the background on the release that the subject signed. Do not extend beyond this established scope.
- Contact your third-party partner. Third-party background check companies are the way to go, and the internet is replete with good options. We recommend partnering with a reliable background check company that has solid ratings and has been in business for a long time. We do not recommend visiting all the federal, state and industry-specific websites required to run a thorough check; let an expert third party manage this action for you.
“There are two really compelling reasons to use a third party,” said Faris. “The first is accessing the data is very complex, and so that is best left to companies who have very robust data networks and supply chains to be able to access all the various court information at the source. And then from a compliance perspective … most consumer reporting agencies provide [FCRA-required notification] as a service. And I would highly recommend leveraging that service.”
- Review the record. Once the check is complete, the background check company will either email the results to you or share them with you on a secure server. Review the content for any surprises or concerns.
- Inform the subject of the findings (with a copy of the report, if necessary). If you have no concerns and nothing to discuss, you are free to proceed with the hiring process. However, what if there are items of concern on the report (especially ones that would warrant either a candidate’s elimination from an employment opportunity or a current employee’s dismissal)? In such an instance, the law entitles the subject to receive a paper or electronic copy of the entire background check.
- Include all related data in your recruitment file. Regardless of the background check’s findings or whether or not you hire the candidate in question, keep a record of it or the review itself in their recruitment and/or personnel file. If your company maintains a supervisor employee filing system, then this record should be retained in the HR-only file.
What are red flags on a background check?
When conducting a criminal background check, employers typically want to consider convictions, not arrests or other charges. An arrest does not mean someone was convicted of a crime. Convictions, or cases in which the accused was found guilty, are the primary concern of a criminal background check.
However, even convictions should be weighed carefully against the circumstances and the role. This is considered a best hiring practice to combat workplace discrimination, and, in some cases, it’s required by state and local regulations. Employers should carefully consider things like the nature of the offense, how long ago it occurred and if the candidate has mitigating factors such as a strong employment history.
“The type of conviction that may cause an employer concern may and should vary depending upon the nature of the position sought and the type of crime,” explained Corcoran. “For example, financial-related convictions would be more of a concern for financial-related positions rather than a warehouse type of position where the person may not necessarily have access to financial information or money or cash.”
Here some common red flags that warrant, at minimum, a discussion with the subject and, at worst, removal from consideration for the job:
- Convictions that the subject did not share previously: If convictions that the subject did not previously disclose show up on the review, then removing the subject from all employment opportunities at your company is the right move. (This is not applicable in jurisdictions where applicants are not required to disclose any convictions.)
- Lack of evidence relating to certification, license or any other education: Were you unable to confirm any certification, license or degree that the candidate claimed to have on their resume, in their cover letter or during their interview (whether the job requires that credential or not)? Then discuss the discrepancy with them to find out why.
- General discrepancies: If a subject leaves out states they’ve lived in or misrepresents durations of time, employers they’ve worked for or certain other details, follow up with them about it using the FCRA process. If a candidate is vague on facts and details during the application and interview process, you may wonder what they’ll be like to work with.
- Multiple bankruptcies or other financial concerns: Low credit scores do not automatically reflect a poor job candidate, nor do other aspects of a credit report’s findings. As the employer, you won’t see the subject’s credit score anyway, but you might see other signs of financial distress (e.g., making late payments or using credit heavily). We recommend two things here: First, never pass on a great candidate if all you have against them is a record of late payments on a credit report. Second, we only recommend conducting financial background checks (e.g., credit checks) for finance-related positions, such as CFOs, accountants and bookkeepers. Credit reviews are not necessary for many other roles.
Background checks help business owners and hiring managers confirm that their selected candidates are trustworthy and high-quality choices for the job. Nowadays, there is little reason not to complete pre-employment background checks on promising candidates. This extra step in your hiring process is likely to prove valuable as you build your team for the future.
Erin Donaghue and Skye Schooley contributed to this article.
