Background Check for Employment: What Does It Show?

You aced the interview – congratulations! But wait, what about the employment background check?

Applying for a new job can be a lengthy process for many job seekers. On average, it can take six weeks or longer to secure employment once you've submitted that initial application and resume. Often, the final step occurs when the company lets you know that it's conducting a background check for employment. If you're like many job candidates, you may find yourself wondering what type of information the company is looking for.

In this guide, we'll explain what background checks for employment are likely to reveal and why companies care about that information. We'll also offer some tips that you can use to prepare for any background check and ensure that you make the best possible impression on prospective employers.

Related reading: 17 Resume Tips to Get Seen and Hired Faster

What is looked at in a background check for employment?

While background checks for employment can vary depending upon which company is conducting the review, you can expect a typical investigation to cover your employment background, credit history, driving records, and criminal history.

Employment history

It is imperative that you be completely honest on your job application, avoiding even the smallest fib on a resume. If the background check uncovers any fraudulent information in your resume, chances are that the employer will automatically reject your candidacy.

One of the most common white lies involves stretching employment dates to cover a gap. If you can't remember the exact dates, it is best to conduct some research instead of guessing. Be sure to use the mm/yyyy format for dates on your resume, as that is what an applicant tracking system (ATS) scan will look for. A company that checks your employment history can find out employment dates, job titles that you've held, and possibly why you left previous jobs.

Credit history

There are many reasons a company may investigate your credit during background checks. The most common reason is that your credit history can demonstrate how responsible you are. These credit checks do not include your credit scores but can show whether you've paid bills on time. If you're applying to a job that involves handling money, this credit report can help the company determine whether you're capable of handling that responsibility.

Driving records

Employers are liable for you if you're on the road for business purposes. Before they take on that liability, they will review your driving record. They want to ensure you have a good driving record, so they know that they're putting a responsible person in one of their vehicles. After all, an employee with a poor driving record can negatively affect the company's insurance rates.

Criminal history

Companies must provide safe work environments for their staff. Many believe that criminal background checks during an employment screening are vital to keeping a safe working environment. It's important to remember, however, that having something negative in your criminal record won't automatically mean that you won't get the job. Again, honesty is the best policy.

The U.S. Equal Opportunity Commission (EEOC) has a number of rules businesses must follow when searching and using criminal background checks for employment. For example, if two people from different racial backgrounds have the same criminal record, a company can't deny employment to a candidate of one background while offering employment to the other. This type of discrimination goes against EEOC guidelines.

Why do employers use background checks?

Companies that use background checks for employment do so to verify that you're the right person for the job. They don't go into a background check expecting to find something disqualifying – quite the opposite, in fact. Employers just want to verify the information you've already provided in your resume and interview

Related reading: 11 Key Things to Put on Your Resume

Having a company run a background check – also called an employment screening – is a pretty good indication that they're interested in offering you the position. Since employment background checks cost money, most companies will not order one unless they're strongly considering you for the job.

How to prepare for a background check

Obviously, you can't control everything that employers discover in a background check. However, if you suspect an employer is going to request a background check, there are some steps you can take to minimize potential concerns.

Start by requesting copies of your records. You can get a free credit report online from each of the three major credit bureaus (Equifax, Experian, and TransUnion) through Annual Credit Report. Although an employer won't see your credit score, they may gain insight into your debts or see bills sent to collections. You can take steps to start improving credit reports, but it's important to remember that positive updates won't happen overnight – so it's best to start this process sooner than later.

If your driving record is going to be particularly important for a job, you can request a copy from your state's Department of Motor Vehicles. This process will vary by state, but typically, you can request your own records online, in person, or via phone or mail.

How long does an employment background screening take?

It depends. If you're applying for a non-federal job, the background check will take about a week. If you're applying for a federal position, the background check can take a couple of months. Of course, these timeframes are for the background check itself. You are not likely to hear from the company the same day they get the results. They have to review the results before they reach out to you.

The most likely reason for a background check to be delayed is a discrepancy with the information, so provide complete and accurate information to speed up the process.

What happens after a background check for a job?

Once the company receives your completed background check, it will take a few days for the hiring manager to review it. If you've passed the employment background check, you'll likely receive an email with a job offer!

Give the employer ample time to perform the background check and then follow up with them. It is possible that the hiring manager has the completed background check but hasn't had time to review it. Your email can serve as a reminder.

Does the employer have to disclose if I fail the background check?

There are federal laws that protect your rights in relation to background checks:

The Fair Credit Reporting Act (FCRA) dictates that employers must get your permission to run a credit check. They must also provide a copy of the report and a “Summary of Rights” if they decide not to hire you based on the credit report.
If an employer decides not to hire you based on information in your background check, the Federal Trade Commission (FTC) requires employers to provide you with a copy of the consumer report that was used. This gives you a chance to review the report and explain any negative information. You also have the right to dispute incorrect information and get a new report within 60 days.

How to dispute an incorrect background check

Errors have been known to occur during an employment background check, and this can cost job seekers a new position. Common errors include:

Incorrect criminal record
Outdated information
Mistaken identity

If an employer lets you know that your background check is the reason they're not offering you the job, request a copy of it in accordance with the FTC requirement mentioned above. If you discover there's an error on your background check, you can dispute it.

To start this process, visit the background check company's website. You may have to file a dispute online, via phone, or by mail. For instance, GoodHire, a popular background check website, lets you file a dispute online. Their team will investigate and get back to you within 30 to 45 days. If the information is, in fact incorrect, they'll fix it and send the employer an updated background check.

It's also possible to sue over an inaccurate background check. Under the Fair Credit Reporting Act, you have the right to sue the background check company.

The ethical conflict of background checks

Some people consider employment background checks for employment to be unethical, particularly the check on criminal history. One argument is that it prevents previously incarcerated individuals from re-entering the workforce and reintegrating into society.

With that said, many are in favor of these background checks to ensure a safe and secure work environment out of concern for those with a criminal history to re-offend. According to a report cited by Society for Human Research Management (SHRM), employers say they conduct background checks to:

Protect employees, customers, etc.
Improve the quality of hires
Comply with legal mandates
Protect company reputation
Prevent and/or reduce theft, embezzlement, or other criminal activity

Ban the box

When the topic of background checks is brought into question, you may hear about “Ban-The-Box,” a law that refers to the “box” on job applications that asks candidates about their criminal history.

This law, originally established in 1998, forbids employers from considering a job candidate's criminal history until after a job offer is made. Since its inception, 36 states and 150 cities have adopted it, according to the National Employment Law Project.

Fair chance hiring

There's also another practice that needs to be mentioned in this conversation: fair chance hiring.

“Essentially, fair chance hiring mandates that employers only assess a candidate's criminal record after the candidate has been interviewed and is considered qualified for a role,” reports the Harvard Business Review. “To have a true impact, employers must go beyond 'ban the box' policies and be proactive about establishing a pipeline of qualified candidates who, because of their criminal records, they're otherwise likely to miss out on meeting.”

The Harvard Business Review goes on to cite statistics from the American Civil Liberties Union, noting that people with criminal records tend to stick around longer, and they are no more likely to be fired for misconduct than someone without a record.

Are background checks on their way out?

However, this doesn't mean you can expect background checks to go away anytime soon. According to SHRM's anticipated 2023 employment screening trends, continuous screening will become more common due to the increase of remote work. That means employers may run regular background checks on employees or contractors. But this, of course, will need to be disclosed to and authorized by employees.

Make sure you understand background checks for employment – and your rights

Your job is your livelihood, so it's important to be aware of background checks for employment and their potential impact on your job search success. Staying informed of and exercising your federally protected rights can mean the difference between employment and unemployment. The good news is that proper preparation and accurate information on your resume can help to ensure a faster turnaround for your background check.

Is your resume accurately highlighting your experience, achievements, and skills in a way that sets you up for success with any background check for employment? Check today with a free resume review.

This article was originally written by Carson Kohler and updated in 2021 by Marsha Hebert. It was updated by Ken Chase in July 2024.