Background checks help you identify candidates who may be unqualified or pose a risk to your business.
At iprospectcheck, we’ve helped thousands of employers run fast, accurate, and compliant background screenings across many industries.
We’ll walk you through what employment background checks are, how to conduct them, and how to stay compliant with federal and state laws.
Key Takeaways
- An employment background check is an investigation of an applicant’s or employee’s history to confirm they are qualified, competent, and trustworthy.
- Background checks might include identity verification, employment verification, education verification, a criminal history check, motor vehicle records search, credit check, professional license verification, or other searches.
- To get an employment background check, create a compliant policy, train your staff, get written consent, partner with a trusted provider like iprospectcheck, time the background check appropriately, tailor it to the role, keep candidates informed, evaluate records fairly, and follow the FCRA’s adverse action process if you decide not to move forward based on the results.
What is a Background Check for Employment?
A background check for employment is an investigation into an applicant’s or employee’s history to ensure they are qualified, competent, and trustworthy.
Employers conduct pre-employment background checks to confirm what applicants have reported on their resumes, uncover convictions that could affect their ability to perform their jobs or threaten workplace safety, and verify they have the education and experience necessary for the position.
Employment background checks might also be conducted post-employment to confirm that current employees continue to meet the company’s standards.
What’s Changing with Background Checks in 2026?
The landscape of background screening in 2026 is shifting dramatically due to emerging technologies and evolving legal frameworks.
To remain both competitive and compliant, businesses must pay close attention to several critical developments:
- AI and Automation: Artificial intelligence is reshaping the way companies conduct background checks and recruit candidates by accelerating data processing and improving precision.
States like Illinois and Colorado are setting the pace in AI regulation, introducing mandates for transparency and bias audits to combat discriminatory practices in employment.
Compliance with federal rules like Title VII and new CFPB guidelines is essential to ensure that AI-powered tools for hiring and workforce management are used responsibly and without bias.
Rather than relying on AI to make hiring decisions independently, companies should implement it as a support tool within a larger compliance framework and select vendors committed to fairness and legal alignment.
- Continuous Monitoring: More employers are turning to continuous background screening to keep track of employee records throughout their time with the company.
This proactive strategy helps identify risks early and supports a safer, more secure workplace.
- Digital Identity Verification: As remote work becomes more common, verifying candidate identities digitally has become a top priority.
Companies are turning to high-security methods such as biometric authentication and blockchain-backed platforms to confirm identity and prevent fraud.
- Social Media Screening: Reviewing applicants’ social media presence is gaining popularity as a way to evaluate cultural alignment and professional behavior.
Tools powered by AI can assess behavioral patterns online, separating one-off issues from recurring red flags, and offering employers a clearer picture of a candidate’s values and conduct.
- Enhanced Compliance Measures: With privacy regulations continuing to evolve, staying current on legal changes is no longer optional.
At the same time, new laws, such as those regulating AI use and expanding access restrictions on criminal records through “clean slate” initiatives, are increasing the complexity of compliance.
Employers must monitor these changes closely to avoid falling behind, particularly as enforcement ramps up heading into 2026.
By aligning with innovative and compliant screening providers such as iprospectcheck, employers can embrace these trends confidently, streamlining hiring while upholding both legal obligations and ethical standards.
What Does a Report Usually Include?
Many types of background reports might be included in an employment background check, depending on the position and required duties.
Most employers request the following types of screens for standard background checks:
- Identity Verification
- Criminal history
- Motor vehicle records (MVR) checks for driving positions
- Employment history
- Education history
- Professional license verification for positions requiring licensure
- Credit history
Here’s what each of these types of reports might include:
Identity Verification
An Identity Verification serves as a starting point in a comprehensive background screen. Taking steps to identify the names a person has used, date of birth, and places a candidate has lived and worked is the foundation of the background screening process.
Criminal History Check
A criminal background check for employment reveals if an applicant or employee has pending criminal charges or convictions.
If an applicant or employee has a pending criminal charge or conviction, the report includes the following details:
- Date of offense
- Offense type
- Offense severity (misdemeanor or felony)
- Case DispositionDisposition date
- If available, sentence information
MVR Check
Employers with jobs requiring driving frequently request driving records screens as a part of their employment background checks.
An MVR check shows the following information:
- Full legal name
- Date of birth
- License number
- License issuance date
- License class
- License expiration date
- Suspensions or revocations
- Traffic infractions
- Traffic crimes
Employment Verification
Employment verification confirms an applicant’s employment history as reported on their resume.
An employment verification report discloses the following information about an applicant’s past employment:
- Name of each employer
- Dates of employment
- Position/title held when available
Education Verification
Education verification confirms what an applicant has reported on their resume about their educational attainment and reveals the following information:
- Name of schools attended
- Dates of attendance or graduation
- Whether a diploma or a degree was conferred
Professional License Verification
Employers with positions that require licensure often ask for professional license verification as a part of their employment background checks.
Professional license verification shows the following information about an applicant’s credentials:
- Type of license
- License validity
- License issuance date
- License expiration date
- License status
- Public discipline/sanctions
Employment Credit Check
Credit checks for employment might be conducted for jobs in the financial industry and positions involving access to a company’s intellectual property and money.
An employment credit check reveals the following details:
- Payment history
- Debt-to-income (DTI) ratio and available credit
- Any bankruptcies within the past seven to 10 years
- Collection accounts
- Other inquiries made
- Indicators of financial distress
Why You Need to Screen Employees Before Hiring
1. Protect Workplace Safety
Employment background checks reveal convictions that could indicate an applicant would be a threat to a company’s current employees, customers, and members of the public.
By conducting background checks, you can reduce the risk of hiring someone who could threaten workplace safety.
2. Ensure Legal Compliance
Companies operating within regulated industries might be required to conduct background checks to ensure their applicants and employees meet regulatory standards.
For regulated companies, including DOT-regulated employers, conducting background checks is one way to ensure legal compliance.
3. Establish A Culture of Trust and Transparency
Employment background checks help companies establish a culture of trust within their workforce.
Employees at companies that conduct background checks trust that their fellow employees meet company standards and are safe.
Background checks also help companies to build trust relationships with clients and contractors. When customers know a company’s employees have undergone background checks, they might feel more confident in their ability to trust them.
4. Mitigate Liability Risks
Employers can be liable for the actions of their employees when they intentionally or negligently cause injuries to others while working.
Background checks identify applicants who might be unsafe, allowing employers to screen out potentially dangerous applicants who could pose a liability risk.
Failing to check the background of an employee who later goes on to harm others could result in lawsuits and negligent hiring/retention liability.
5. Protect the Company’s Brand and Reputation
Companies rely on their reputation to build a loyal customer base and expand their operations.
Reputational damage can lead to losses of customers and profits, making it important for employers to take steps to protect their brand and reputation.
Conducting background checks is a good measure to prevent reputational damage from the negligent or intentional acts of employees.
6. Uphold and Maintain High Standards
Businesses write policies to establish the standards they want to achieve and maintain.
Conducting employment background checks helps companies confirm that their employees meet their standards and can be trusted to perform the duties of their jobs.
Know Before You Hire
When Should I Screen Employees?
An employment background check reveals an individual’s criminal record, employment history, education, and other details at a specific moment.
Certain information in a background check can change over time, which is why employers might complete employment screenings at different points in the employer-employee relationship.
1. Pre-Employment Screening
Once you’ve found a candidate who seems like a good fit, run a background check to confirm they’re the right choice.
Some jurisdictions require that background checks be performed only after an offer for employment has been made and accepted, contingent upon the results of the background check.
Many employers conduct pre-employment background checks once they have interviewed several candidates and narrowed down their list to a few qualified individuals.
A pre-employment background check can then confirm that a candidate is trustworthy, qualified, and a good fit for the role.
2. Annual Background Checks
Annual rescreening is required in certain regulated industries, including transportation. Companies regulated by the Federal Motor Carrier Safety Administration (FMCSA) must conduct annual driving records checks and drug screens of their drivers under Department of Transportation (DOT) regulations.
If you work in regulated industries, like healthcare, finance, education, or transportation, run yearly background checks to catch any changes in your employees’ records.
For example, an employee might have received a new criminal conviction since being hired, which could impact the business.
It’s a good idea to complete an annual screening just before an employee’s annual performance review to confirm the employee continues to meet the company’s standards.
3. Screening Before Promotions
Another time it makes sense to rescreen a current employee is when they are up for a promotion.
This helps to confirm the employee’s qualifications for the position.
4. Random Drug Screens
In addition to other types of post-hire background checks, companies with drug-free workplace policies might benefit from instituting random drug screens.
This helps to reduce substance abuse and protect workplace safety.
How to Get an Employment Background Check
1. Create a Background Check Policy
Begin by creating a written background check policy that outlines:
- When checks will be performed.
- Which job categories require screenings.
- Which types of information will be verified.
Your policy should comply with federal laws such as the Fair Credit Reporting Act (FCRA) and any state or local regulations.
Having a documented policy ensures consistency, transparency, and reduces legal risk.
2. Educate Your HR and Hiring Teams
Train your HR, recruiting, and hiring managers on how to:
- Request written consent before screening.
- Interpret and handle background reports.
- Respond appropriately to findings while avoiding discrimination.
When you properly train your staff, you ensure compliance and promote fair treatment for all candidates.
3. Provide Disclosure and Obtain Written Consent
Before running any background check:
- Give the applicant a standalone disclosure that clearly explains the purpose and scope of the screening.
- Obtain a written authorization (paper or electronic) from them.
Both steps are required under the FCRA. Failure to comply can lead to costly legal claims or penalties.
4. Choose How You’ll Conduct the Background Check
Employers can take two main approaches:
Use a Professional Screening Provider (Recommended)
Partnering with an FCRA-compliant background screening company, like iprospectcheck, ensures legal, secure, and efficient hiring decisions.
Professional reports are:
- Professionally prepared and easy to read.
- Reviewed by certified screening professionals for accuracy and compliance.
- Fast to process with digital access to results.
- Securely handled with encryption and privacy protections.
- Delivered with detailed, job-relevant summaries across key record categories.
Do-It-Yourself Background Checks
Some small businesses may consider running background checks on their own by:
- Contacting previous employers directly
- Checking county or state court databases
- Verifying education credentials with institutions
Although it might seem more budget-efficient to conduct DIY background checks, this approach often creates hidden risks.
DIY checks tend to be time-consuming, incomplete, and legally fragile.
Without FCRA compliance procedures, proper consent management, or secure data handling, your organization can unintentionally violate privacy laws or make hiring decisions based on inaccurate information.
5. Time the Background Check Appropriately
Although many regions allow checks at any stage, the best practice is to:
- Conduct screenings after a conditional job offer.
- Avoid early checks that could create bias or compliance issues.
This timing supports equal opportunity hiring and aligns with “ban-the-box” laws in many states.
6. Tailor the Check to Job Requirements
Screen only for information relevant to the position. This helps you stay compliant with privacy laws like EEOC’s guidance on fair hiring, avoid unnecessary delays, and keep your hiring process focused and efficient.
For example:
- Driving records – for delivery or fleet positions
- Credit reports – for financial or managerial roles
- Professional licenses – for healthcare, legal, or regulated roles
7. Keep Candidates Informed Throughout the Process
Maintain open communication with applicants:
- Notify them when the background check starts.
- Let them know who to contact for questions or disputes.
- Share final hiring decisions respectfully and transparently.
Clear communication enhances trust and employer brand reputation.
8. Evaluate Criminal Records Individually
If a background report reveals a criminal history:
- Assess the nature and gravity of the offense.
- Consider how long ago it occurred.
- Determine relevance to the role being filled.
Don’t automatically disqualify candidates. Instead, evaluate each case individually and document your reasoning to demonstrate fairness and compliance.
9. Follow the FCRA’s Adverse Action Process
If you decide not to hire an applicant based on background results:
- Send a Pre-Adverse Action Notice with:
- A copy of the background check report, and
- A Summary of Rights Under the FCRA.
- Give the applicant at least five business days to respond or dispute inaccuracies.
- If you still decide against hiring, issue a Final Adverse Action Notice with supporting documentation.
Properly following this process protects your organization from legal disputes.
When a Company Refuses to Use Background Check Consents
In background screening, ignoring authorization isn’t just unethical – it’s illegal, risky, and undermines trust across the entire industry. Read on to see why this matters more than ever.
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Every so often, a conversation with a prospective client stops you cold.
Recently, we spoke with an organization that made it clear they would not obtain consumer authorization before ordering background checks. They did not want their candidates to know that they were being screened. They viewed the consent process as a barrier to speed. They believed the risk was theoretical.
We walked away.
That decision was not about posture or pride. It was about the law, the ethics of our industry, and the simple reality that skipping consent is one of the fastest ways for an employer to find itself in the middle of a costly and very public legal problem.
The requirement to obtain written authorization before conducting a background check is not optional. It is one of the most settled areas of consumer reporting law, reinforced by the FCRA, state statutes, federal regulators, and decades of litigation. Courts have been consistent. Jurors have been unsympathetic. Plaintiffs’ attorneys have treated these violations as a gift.
There is also a moral dimension.
Background screening reaches into the most private corners of a person’s life. It examines criminal records, financial history, employment history, education, and identity. It influences whether someone can provide for their family.
Treating that process as something that can be done in secret, without transparency or permission, erodes trust before the employment relationship even begins. If a company believes that consent is burdensome, it is worth asking how it views the individual on the other end of the report.
When we declined this client, we did so because reputational risk is real. Consumer reporting agencies do not get to hide behind the employer’s decision. When something goes wrong, every party involved is named in the lawsuit. Every party is required to explain its role. Every party shares exposure.
CRAs that knowingly facilitate unauthorized background checks place themselves directly in the path of regulatory scrutiny and class action litigation. The idea that a CRA can sidestep responsibility by saying the employer instructed them otherwise has been tested many times and never ends well.
There is a broader consequence as well.
Trust in our industry depends on consistent standards. When any organization treats the authorization process as optional, it undermines confidence in background screening at large. It feeds the narrative that the industry is careless with consumer rights. It encourages lawmakers to introduce restrictive legislation designed to prevent abuse. It increases friction for everyone who is committed to doing this work responsibly.
The truth is simple. Consent is not an optional formality. It is the foundation of ethical and compliant screening. A CRA that values its integrity cannot be complicit in disregarding it. We chose to walk away because protecting our candidates, our clients, and our company matters more than winning a piece of business.
In this industry, the right clients appreciate that. The wrong ones prove themselves quickly.
iprospectcheck: Your Dependable Partner for Compliant Background Checks
Employment background checks allow employers to feel confident in their hiring decisions.
By conducting these vital checks, your company can ensure its employees maintain high standards, are trustworthy, and are qualified to perform their jobs.
At iprospectcheck, we have extensive experience conducting employment background checks for companies in every state and always return accurate, current, and FCRA-compliant background check reports.
To learn more about our background checks and receive a free quote, call us today: (888) 509-1979.
DISCLAIMER: The resources provided here are for educational purposes only and do not constitute legal advice. Consult your counsel if you have legal questions related to your specific practices and compliance with applicable laws.
