Every hire is a risk. The question is how much risk you're willing to take without the right information.
Pre-employment background checks are one of the most effective tools employers have to verify who they're bringing into their organization. But done incorrectly, they can expose your business to legal liability, slow down your hiring process, or worse — give you a false sense of security.
This guide walks you through exactly how to run a background check the right way: legally, efficiently, and with results you can actually act on.
Why Pre-Employment Background Checks Matter
The stakes of a bad hire go far beyond a wasted salary. A single negligent hiring claim — where an employer is sued for failing to screen an employee who later caused harm — can cost hundreds of thousands of dollars in legal fees and settlements.
Beyond legal risk, bad hires affect your team's morale, your customers' trust, and your company's reputation. Background checks aren't just a formality. They're a foundational part of responsible hiring.
Here's what a thorough pre-employment background check can reveal:
- Criminal history — felonies, misdemeanors, and pending charges
- Employment verification — whether a candidate's work history is accurate
- Education verification — confirming degrees and certifications claimed on a resume
- Identity verification — ensuring the person is who they say they are
- Sex offender registry — required for roles involving vulnerable populations
Understanding the FCRA: The Law That Governs Background Checks
Before you run a single check, you need to understand the Fair Credit Reporting Act (FCRA). This federal law governs how consumer reports — including background checks — can be used in employment decisions.
The key requirements under the FCRA include:
1. Get Written Authorization
You must obtain written consent from the applicant before running a background check. This consent must be a standalone document — it cannot be buried in your general employment application.
2. Use a Compliant Consumer Reporting Agency (CRA)
You must use a CRA that follows FCRA guidelines. This means the agency must maintain accurate records, allow consumers to dispute errors, and follow proper data handling procedures.
BackgroundVetting is a fully FCRA-compliant CRA, which means every report we generate meets federal standards.
3. Follow the Adverse Action Process
If you decide not to hire someone based on their background check, you must follow a two-step adverse action process:
1. Pre-adverse action notice — Send the applicant a copy of the report and a summary of their rights before making a final decision
2. Adverse action notice — After a reasonable waiting period (typically 5 business days), send a final notice informing them of the decision
Skipping these steps is one of the most common — and costly — FCRA violations employers make.
Step-by-Step: How to Run a Pre-Employment Background Check
Step 1: Determine What You Need to Screen
Not every role requires the same level of screening. A warehouse associate and a CFO have very different risk profiles. Before you run any checks, define what's appropriate for the position.
Common screening packages by role type:
- Entry-level / general staff — Criminal history, identity verification
- Financial roles — Criminal history, credit check, employment verification
- Healthcare / childcare — Criminal history, sex offender registry, license verification
- Driving roles — Criminal history, MVR (motor vehicle records)
- Executive / senior leadership — Full package including education and employment verification
Step 2: Disclose and Obtain Consent
Send the applicant a clear, standalone disclosure form explaining that you will be conducting a background check. Have them sign and return it before you proceed.
Keep a copy of this signed consent on file. If you're ever audited or face a legal challenge, this documentation is your first line of defense.
Step 3: Order the Background Check
Once you have consent, you can place your order. With BackgroundVetting, this takes less than two minutes. Enter the applicant's name, date of birth, and Social Security number, and select the checks you need.
Our platform supports 13+ check types, including:
- Criminal background (national, state, county)
- Employment and education verification
- Credit history
- MVR (motor vehicle records)
- Sex offender registry
- Identity verification
Step 4: Review the Report
Results are delivered instantly. Your report will include a clear summary of findings, with any flagged items highlighted for easy review.
When reviewing a report, keep these principles in mind:
- Consider relevance — A 10-year-old misdemeanor may not be relevant to a desk job
- Consider recency — More recent offenses carry more weight
- Apply consistent standards — Whatever criteria you use, apply them equally to all candidates for the same role
- Know your state laws — Some states have additional restrictions on how criminal history can be used in hiring decisions (often called "ban the box" laws)
Step 5: Make Your Decision — and Follow the Process
If the background check raises no concerns, you're clear to move forward with the hire.
If the report reveals something that gives you pause, follow the adverse action process outlined above. Do not simply reject the candidate without following the proper steps — this is where many employers run into legal trouble.
Common Mistakes Employers Make
Running checks without written consent
This is an FCRA violation, full stop. Always get written authorization before ordering a report.
Using non-compliant screening services
Not all background check providers are FCRA-compliant. Using a non-compliant provider exposes you to liability even if you follow every other step correctly.
Applying inconsistent standards
If you overlook a criminal record for one candidate but reject another for the same offense, you're creating legal exposure. Document your screening criteria and apply them consistently.
Ignoring state-specific laws
Federal law sets the floor, but many states have stricter requirements. California, New York, and Illinois, for example, have specific rules about when and how criminal history can be considered. Know the laws in your state.
Making snap judgments
A background check is one data point, not a verdict. Review the full context before making a decision.
How BackgroundVetting Makes This Easier
BackgroundVetting was built to take the complexity out of FCRA-compliant screening. Here's what you get:
- Instant results — Most reports are delivered in seconds
- FCRA-compliant reports — Every report meets federal standards
- 13+ check types — Build the exact screening package your role requires
- Simple ordering — Place an order in under 2 minutes
- Transparent pricing — Reports start at $14.95 with no hidden fees
Whether you're a solo HR manager at a small business or a team running hundreds of checks a month, BackgroundVetting scales to fit your needs.
The Bottom Line
Running a pre-employment background check isn't complicated — but it does require following the right process. Get written consent, use a compliant provider, review results fairly, and follow the adverse action process when needed.
Done right, background checks protect your business, your team, and the people you serve.
Ready to start screening smarter? Create your free BackgroundVetting account and run your first check today.