We frequently get asked about the legality of doing a background check. This question may come from a client or from an applicant who has applied for a job. The basic answer to the question is yes – background checks are legal. Of course, you know there is a “but first” clause to this answer.

A reputable screening agency is going to follow guidelines set up by the federal government under the Fair Credit Reporting Act (FCRA). The FCRA itself is a rather lengthy, involved “document” that the background screening agency is going to be very familiar with. Some of the high points on this document include an agreement for service between the background screening agency and the employer, guidelines for the receiving and use of credit reports and background check reports, applicant authorizations to do a background check, and guidelines for pre-adverse and adverse actions. You as the client should be able to contact your screening agency and ask any question pertaining to the FCRA and they should be able to give you an answer without a problem.

One of the primary “rules of thumb” for background screening agencies is that the applicant must be aware that a background check is being done and they must authorize that background check in writing. Most reputable background check companies will have a signed release authorization form for a client to give to their applicant. This form will outline who will perform the check and what services may be performed. If the applicant refuses to sign that document or any document authorizing a background check, the screening agency can’t do anything. However, with the applicant's signed release authorization, the applicant is indicating that they are aware a background check will be done and they authorize the service.

Background check services may include information gained from previous employers, schools, courts, credit reports, some workers compensation, address verifications, drivers license abstracts, references, military history, I-9 information and drug testing. Employment background checks will not include medical records from a doctor, dentist or hospital.

So, yes – background checks are legal provided you use a reputable firm and follow the guidelines set up by the federal government.