Background checks protect your business, your team, and your customers. But they're also a legal minefield. Get them wrong and you face lawsuits, fines, and compliance nightmares.
The key is balance: thorough enough to protect you, fast enough not to lose candidates. Most checks complete in 1-3 business days. Don't let them drag out your hiring process.
Types of Background Checks
Criminal History Check
$20-50Searches county, state, and/or federal criminal records. Most common type of background check.
- • Felony convictions
- • Misdemeanor convictions
- • Pending charges
- • Expunged records may not show
- • Varies by jurisdiction
- • Many states limit lookback period
Employment Verification
$15-30Confirms past employment history, job titles, and dates of employment.
Pro tip: Many large companies only confirm dates and titles. For more detail, ask candidates for manager references.
Education Verification
$10-25Confirms degrees, certifications, and attendance dates from educational institutions.
When to use: Roles requiring specific degrees or professional certifications.
Credit Check
$15-30Reviews credit history and financial responsibility. Requires specific consent.
Professional License Verification
$10-30Confirms active licenses, certifications, and any disciplinary actions.
Essential for: Healthcare workers, lawyers, accountants, contractors, real estate agents.
Drug Screening
$30-60Tests for controlled substances. May be required by law for certain industries.
Note: Marijuana policies vary widely by state. Know your local laws.
Legal Requirements (Don't Skip This)
FCRA Compliance (Federal)
The Fair Credit Reporting Act applies to ALL background checks. You must:
Ban the Box Laws
Many states and cities prohibit asking about criminal history on the initial application:
States with Ban the Box (as of 2025):
California, Colorado, Connecticut, Hawaii, Illinois, Massachusetts, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Washington, and more...
Check your state. Rules about WHEN you can ask vary significantly.
Adverse Action Process
If you decide not to hire someone based on their background check:
Send the candidate a copy of the report and their rights under FCRA. Give them time to respond (typically 5 business days).
Candidate may dispute inaccuracies or provide context. You must consider their response.
If you still decide not to hire, send final notice with: reason for decision, screening company contact info, and their right to dispute.
EEOC Guidelines
You cannot have blanket policies rejecting all candidates with criminal records. You must consider:
- • Nature and gravity of the offense
- • Time elapsed since the offense
- • Nature of the job
Track Every Candidate's Status
Know who's waiting on background checks, who's cleared, and who needs follow-up—all in one dashboard.
Try EasyApply Free →When to Run Checks
Timing in the Hiring Process
- 1. Interview and select candidate
- 2. Make conditional offer (contingent on background check)
- 3. Get written consent
- 4. Run background check
- 5. Clear to start OR adverse action process
Which Roles Need What?
| Role Type | Recommended Checks |
|---|---|
| Entry-level | Criminal, Employment verification |
| Financial roles | Criminal, Credit, Employment, Education |
| Healthcare | Criminal, License verification, Drug screening |
| Executive | Full package: Criminal, Employment, Education, Credit, References |
| Drivers | Criminal, MVR (Motor Vehicle Report), Drug screening |
Choosing a Provider
What to Look For
Must provide compliant forms and adverse action process
Most checks should complete in 1-3 business days
Seamless workflow = faster hiring
No hidden fees, clear per-check pricing
Popular Services
- Checkr - Modern API, startup-friendly, fast turnaround
- GoodHire - User-friendly, strong compliance tools
- Sterling - Enterprise-grade, global coverage
- HireRight - Comprehensive, good for regulated industries
- Certn - Fast, good international coverage
Best Practices
1. Be Consistent
Run the same checks for all candidates at the same level. Inconsistency opens you to discrimination claims.
2. Communicate Clearly
Tell candidates what to expect. "We run a standard background check. It typically takes 2-3 days and checks criminal history and employment verification."
3. Don't Ghost on Bad Results
Follow the adverse action process. It protects you legally and treats candidates with respect.
4. Consider Fair Chance Hiring
70 million Americans have criminal records. Many are excellent employees. Judge each case individually, considering the nature of the offense and the job.
5. Document Everything
Keep records of consent forms, check results, and your decision-making process. Store securely and follow retention requirements.
Background Check Checklist
- ☐ Written consent obtained
- ☐ Standalone disclosure provided
- ☐ Check matches role requirements
- ☐ Adverse action process documented