Background checks can protect your customers and team, but they come with strict rules. Here is how to run them lawfully and fairly.
| Check | What it covers | Typical use |
|---|---|---|
| Identity and SSN trace | Confirms identity and finds past addresses | Starting point for other searches |
| Criminal records | County, state and federal court records; sex offender registries | Many roles, especially those with access to customers, homes or vulnerable people |
| Motor vehicle record | Driving history, license status | Drivers and roles using company vehicles |
| Employment verification | Dates and titles with past employers | Confirming experience |
| Education verification | Degrees and attendance | Roles requiring specific education |
| Professional license | License status and discipline | Nurses, electricians, plumbers, security guards |
| Credit report | Credit history | Limited roles; restricted in many states |
| Drug testing | Substance use | Safety-sensitive and federally regulated roles; state laws vary |
| Healthcare sanctions | Exclusion lists for federal health programs | Healthcare employers |
Only run checks that relate to the job. A cashier and a delivery driver need different screening.
EZTime digital HR forms let you send, sign and file employee documents online.
When you use a consumer reporting agency (a background check company), the FCRA generally requires:
Some states, such as California and New York, have additional disclosure and notice requirements. Many background check providers supply compliant forms, but you remain responsible.
Many states, cities and counties have fair chance laws that limit when employers can ask about criminal history, often not until after a conditional job offer, and require an individualized assessment before rejecting a candidate because of a conviction. Some require specific notices and a waiting period. Federal agencies and federal contractors are covered by the Fair Chance to Compete for Jobs Act. Check the rules everywhere you hire.
Even where no specific law applies, the EEOC has issued guidance that blanket exclusions of anyone with a criminal record may have a disparate impact on protected groups. A common approach is to consider the nature and seriousness of the offense, the time that has passed and the nature of the job.
Several states and cities restrict employers from using credit history in hiring except for specific jobs, such as those handling significant money or sensitive financial information. Even where allowed, credit checks are subject to the FCRA. Use them only where clearly job-related.
Drug testing rules depend heavily on state law and industry. Employers regulated by the US Department of Transportation, such as those with commercial drivers, must follow federal testing rules. Many states regulate when testing can occur, which methods are allowed and how cannabis use is treated, including some laws protecting off-duty cannabis use. Have a written policy reviewed by counsel.
| Industry | Typical checks |
|---|---|
| Home care and healthcare | Criminal records, license verification, healthcare sanctions lists, state-required checks for caregivers |
| Security | State security guard licensing usually includes fingerprint-based checks |
| Cleaning and field service | Criminal records for in-home work; motor vehicle records for drivers |
| Restaurants and retail | Often limited; sometimes criminal checks for cash handling or management roles |
| Transportation and delivery | Motor vehicle records; DOT drug and alcohol testing for covered drivers |
Some state laws require specific checks for jobs involving children, older adults or people with disabilities. See our home care agencies page for how eztime supports caregiving teams.
Background reports contain sensitive personal information. Store them securely with limited access, separate from general personnel files. Federal rules require proper disposal of consumer report information when you no longer need it, such as shredding paper or securely deleting files. Keep hiring records for the period federal and state laws require. Our personnel file guide explains what goes where, and the digital employee file can help with access controls.
When using a background check company, yes. The FCRA requires a standalone written disclosure and the candidate’s written authorization before the report is ordered.
A notice an employer must send under the FCRA after deciding not to hire someone based in whole or part on a background report. It must be preceded by a pre-adverse action notice with a copy of the report and a summary of rights.
Under the FCRA, most negative information other than criminal convictions generally cannot be reported after seven years for jobs below a certain salary level. Convictions are not limited federally, but some states restrict how far back they can be reported.
Fair chance laws, often called ban-the-box laws, limit when employers can ask about criminal history, often not until after a conditional offer, and may require an individualized assessment before rejecting a candidate.
It depends on the offense, the job, the time that has passed and state and local laws. Blanket bans can create discrimination risk. Use an individualized, job-related assessment and follow fair chance procedures.
In many places, yes, with FCRA compliance, but several states and cities restrict credit checks to specific types of jobs.
No federal law requires background checks for most private-sector jobs, but some states and industries require them for certain roles, such as caregivers, security guards and commercial drivers. If you screen, apply your policy consistently to all candidates for the same role.
Employees can fill in and sign forms like this in the EZTime app, and the signed copy lands in their digital employee file.