What Limitations Are There on Background Checks?

Background checks are governed by the Fair Credit Reporting Act (FCRA). Employers are entitled to obtain background information from a consumer reporting agency (CRA) about individuals for the purpose of evaluating them for employment, promotion, reassignment, or retention. The types of information that can be gathered for a background check include credit reports, criminal records, driving records, and employment verification.

FCRA requires employers to provide a separate notice to job applicants stating that a consumer report may be obtained. Prior to ordering the background check, written authorization from the applicant must be received. The employer must also certify to the CRA that notice was provided and authorization obtained.

If the background check results in any action adverse to the consumer -- such as a job applicant not being hired or was fired -- the employer must provide the consumer with a copy of the background check and a summary of the consumer's rights under FCRA before the adverse action is implemented. The employer must then give the consumer a reasonable amount of time -- usually 5 days -- to challenge the contents of the report.

Get the Specifics on Background Checks
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The HR Library has more helpful background resources like these:

Background Check Regulations by State

Sample Policies on Background Checks

Privacy vs. Your Need to Know