Pre-employment background checks are a crucial step in the hiring process, helping employers make informed decisions while staying compliant with legal obligations. Understanding what you can investigate and how to navigate regulations ensures a smooth hiring process.

So, you think you found the perfect job candidate. They check all the boxes and are ready to start immediately. Do you A), make the offer now before they get away? Or B), run a background check first? If your answer is “B,” you have company. According to the National Association of Background Screeners, 95% of U.S. employers use a screening process when hiring employees. But when exactly should you run your pre-employment background check? And what can (and can’t) you investigate?

At Accu Data, we offer background screening services and get a lot of questions about background check requirements. And yes, there are several legal obligations employers must comply with. Here are some of the questions we’re asked:

When Should I Run a Pre-Employment Background Check for a Potential Hire?

Generally, checks are run after a conditional job offer has been made but before it has been finalized. Some employers prefer to run checks on all applicants interviewing for the position, but this can get expensive if you’re using background check companies. On top of that, it may not even be legal in your state. (More on this later.)

What Can Be Investigated in a Pre-Employment Background Check?

You can look into a person’s work history, education, criminal record, and financial history during a pre-employment background check. You cannot look at medical history or genetic information.

Can You Check Social Media During Pre-Employment Background Checks?

Over 70% of employers screen applicants’ social media. It’s important to know, however, that social media screening, whether before or after a hire, has risks, including violating the Fair Credit Reporting Act (FCRA).

Do I Need Consent for a Pre-Employment Background Check?

Yes. To remain in compliance with Federal Trade Commission regulations, employers must get written permission from the applicant or employee before running a background check.

What to Do if a Background Check Disqualifies a Candidate

Employers must provide the applicant with a copy of the report and a “Summary of Rights.” It should also be noted here that employers may not discriminate on the basis of race, color, national origin, sex, religion, age (if 40 or older), disability or genetic information, according to the Equal Employment Opportunity Commission

Do Background Check Regulations Vary by State?

Yes, and in some cases, international laws also come into play. Some states limit the lookback period for criminal checks to seven years. Some states additionally have “ban the box” laws that make it illegal for employers to ask about criminal history. Record retention laws also vary across different jurisdictions. Because many companies now have employees who work remotely, it’s important to determine whether the location of those employees affects the regulations your company must comply with.

Should Marijuana Testing Be Part of a Pre-Employment Background Check?

Many companies have been moving away from marijuana testing. Additionally, some states that have legalized marijuana for medical and recreational use have made it illegal to screen for marijuana except in regulated industries (such as transportation, nuclear energy and military contracting). Note that these laws vary by municipality.

Do Reference Checks Follow Pre-Employment Background Check Regulations?

Yep. Questions about a person’s race, national origin, gender or gender identity, sexual orientation, religion or religious affiliations, age or date of birth, marital status, disabilities and health, criminal background, height and weight or genetic information are not allowed.

Before you run a pre-employment screening, you should consult an employment professional so they can be sure you are complying with all relevant background check laws. At Accu Data, we’re ready to field your questions about the background check process and tell you more about our simple and affordable background check services, plus our many payroll and HCM offerings. Contact us today for a free consultation!