How to Run Employment Background Checks in 2025
Hiring the right people is critical — but how do you ensure your candidate is trustworthy, qualified, and compliant with industry standards? That’s where employment background checks come in.
In 2025, businesses must be even more mindful of data privacy, regulatory changes, and fair hiring practices. This guide will walk you through the correct way to conduct a background check, avoid legal pitfalls, and streamline your hiring process.
🛡️ Why Background Checks Matter for Employers
Background checks help prevent:
Workplace theft or violence
Liability claims and compliance failures
Costly turnover
Negligent hiring lawsuits
They also give hiring managers peace of mind when making key decisions about new employees.
⚖️ Legal Considerations Before You Begin
Under the Fair Credit Reporting Act (FCRA), employers must:
Get written consent before conducting any background check
Provide a pre-adverse action notice if they plan to take negative action based on report findings
Give the candidate time to dispute inaccuracies
You also must follow Equal Employment Opportunity Commission (EEOC) guidelines to avoid discrimination or bias.
📋 Types of Employment Background Checks
Not all checks are required for every role, but most businesses consider the following:
Criminal Records Check: Local, state, federal
SSN Trace & Identity Verification
Employment History Verification
Education Verification
Reference Checks
Motor Vehicle Records (MVR) – important for DOT-regulated or driving jobs
Credit Reports – only for roles with financial responsibility (requires specific consent)
📝 Step 1: Obtain Consent From the Applicant
Use a clear and separate disclosure form to get written permission before running any background checks. This is required by law and helps set expectations with the applicant.
Digital platforms like Vertical Identity’s portal make this process fast and compliant.
✅ Step 2: Choose the Right Type of Background Check
Customize the check based on the role:
Entry-level retail job? Stick to criminal and identity checks
Finance or executive role? Include credit and reference checks
Commercial driver? Add DOT compliance checks and MVR reports
📂 Step 3: Verify Employment and Education History
Contact former employers and schools to verify:
Dates of employment or graduation
Job titles and responsibilities
Eligibility for rehire
Academic degrees or certifications
This helps confirm truthfulness and qualifications.
☎️ Step 4: Contact References
Reach out to former supervisors or professional contacts. Ask about the candidate’s reliability, teamwork, and performance. Keep questions consistent and job-related.
📊 Step 5: Review Results and Make a Compliant Hiring Decision
If the report reveals information that disqualifies a candidate:
Share the pre-adverse action letter
Provide a copy of the report
Give the candidate time to respond or dispute
If no dispute arises, follow with an adverse action letter
This protects your company and respects the applicant’s rights.
⭐ Best Practices for Running Background Checks
Always use FCRA-compliant vendors
Avoid blanket policies that could appear discriminatory
Tailor checks to each role’s responsibilities
Keep background check documentation secure
Re-run background checks periodically for sensitive positions
💼 How Vertical Identity Can Help
We offer FCRA-compliant employment background checks nationwide. Whether you need criminal, MVR, education, or drug screening — we’ve got you covered.
✅ Fast turnaround
✅ Digital consent forms
✅ Volume discounts
✅ Custom packages by role or industry
✅ Employer and applicant portals
📞 Let’s Simplify Your Hiring Process
Hiring doesn’t have to be risky or complicated. Let us help you stay compliant and make smart hiring decisions.
📍 Visit verticalidentity.com
📱 Call us at (602) 899-1606
🧾 Start screening smarter today!
Frequently Asked Questions About Employment Background Checks
How long does an employment background check take?
Most employment background checks take 2-5 business days to complete. The timeline depends on the types of checks requested, the jurisdictions being searched, and whether any records require additional verification. Professional background screening services can often expedite the process through established databases and relationships.
What shows up on an employment background check?
Employment background checks typically reveal criminal history, employment verification, education verification, credit history (if permitted), and professional license status. The specific information depends on what the employer requests and state laws governing background checks. Under the Fair Credit Reporting Act, employers must obtain written consent before conducting these checks.
Can you fail an employment background check?
There is no pass or fail for background checks—employers review the information and make hiring decisions based on their policies and job requirements. However, certain findings like felony convictions, falsified application information, or failed drug tests may disqualify candidates depending on the position and company policy.
Do all employers run background checks?
Not all employers run background checks, but most do. Studies show approximately 95% of employers conduct some form of pre-employment screening. Industries like healthcare, finance, transportation, and education typically require comprehensive background screening due to regulatory requirements and the sensitive nature of the work.
What is FCRA compliance in background checks?
FCRA compliance means following the Fair Credit Reporting Act regulations when conducting background checks. This includes obtaining written authorization from candidates, providing pre-adverse and adverse action notices, and using only FCRA-compliant screening providers. Non-compliance can result in significant legal penalties and lawsuits.