Employment Background Check Basics: What Every Employer Needs to Know
Hiring your first employees or setting up screening for your business can feel overwhelming. This page covers the essential background check topics every employer should understand — from compliance basics to cost considerations — so you can hire with confidence.
Getting Started
What is an Employment Background Check?
Why Employers Run Background Checks
Common Types of Background Checks
From criminal history to employment and education verifications, different checks provide different insights. In addition to pulling and verifying data, employers may choose to incorporate physical and/or drug screening in a background check package. Employers choose which services to include based on the role, such as driving records for drivers or license checks for regulated professions.
Limitations: What Background Checks Don’t Show
Background checks can’t uncover everything. It’s important that employers understand the limitations of background checks and the circumstances that can create those limitations, such as sealed or expunged records, gaps in reporting, and identity mismatches.
Compliance Essentials
FCRA Compliance Basics
The Fair Credit Reporting Act (FCRA) sets the federal rules for employment screening. Employers must disclose their intent, get written consent, and give candidates specific rights throughout the process. Background check vendors also have obligations to employers and candidates under the FCRA. Using the invitation ordering method, Perfect Fit will provide the relevant forms and collect e-signatures on the required authorization form on your behalf to help keep you compliant.
State & Local Laws (Ban the Box, etc.)
Beyond federal law, many states, counties, and cities have additional rules about when and how you can ask about criminal history. Staying compliant means knowing your local requirements.
Adverse Action Process
If the results of a background check report would disqualify the candidate from an opportunity, the FCRA requires a two-step notice process. This ensures candidates can review and dispute information before a final decision is made. The Perfect Fit team will guide you through this process to ensure you’re staying compliant.
Using Reports Effectively (From Results to Decisions)
How to Read a Background Check Report
The background check report will include a summary section at the top of the report giving a status for each of the searches and components of the report. The statuses are color coded green and red to quickly indicate whether there are any results that need closer review. Each search and component of the report will have it’s own detail box following the summary box.
Evaluating Criminal History Fairly
Not every criminal record should disqualify a candidate. The EEOC recommends considering the nature of the offense, how long ago it occurred, and whether it relates to the job. One third of Americans have a criminal record, and if the record is not relevant to risks of the role, the candidate might just become your most loyal employee.
Timing: When to Run a Check
Some employers screen after a conditional job offer, while others screen earlier. The right timing balances efficiency with compliance (see State & Local Laws section above), and helps you avoid unnecessary cost and effort.
Cost, Coverage & Vendor Selection
Pass-Through Fees & Hidden Costs
Some courts and data sources charge mandatory access fees, which are added to your order at cost with no markup. These fees are an industry standard and apply no matter which provider you choose, but a reliable screening partner should be upfront about them. Perfect Fit provides tools to help you manage these expenses, and our invoices include clear, detailed breakdowns of all fees.
How to Save Money Without Cutting Corners
You don’t need to overspend to get reliable results. Choosing the right level of screening for each job, managing alias names effectively, and bundling services can keep costs low while maintaining compliance. The right provider will also help you avoid unnecessary expenses — especially important for small and mid-sized employers who often get overcharged by larger vendors.
What to Look for in a Background Check Provider
While every vendor pulls data from the same courthouses and databases, not all providers deliver the same experience. Look for accuracy, fast turnaround, compliance support, transparent pricing, personal service — and a partner sized to fit your business needs.
Putting It Into Practice
Creating a Background Check Policy
A written policy ensures fairness and consistency across all hires. It should outline which roles are screened, what checks are run, and how results are evaluated.
Getting Started with Perfect Fit
Getting set up is fast, free, and easy. There are no contracts, subscriptions, commitments, or setup fees — you only pay for the orders you place. Once you create your account, we’ll complete the federally required credentialing process, usually within one business day. To begin, visit our Prices page, select your state, and create your free account.
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