How do employer background checks work?

People lie on their resumes—that’s a fact.

The only question is how often. Some sources say 65%, others say 70%, and some claim over 90% of applicants lie on their resumes.

No surprise then, that up to 95% of companies run background checks to verify whether the information provided by candidates is accurate.

If you’re about to undergo a background screening, it’s better to understand how these checks work to ensure everything goes smoothly in this final stage of recruitment.

Learn how background checks are done, what to expect, and how to get ready.

Let’s dive in!

How do employer background checks work?

In short, employers check public records and the documents you give them. They also contact the right places to make sure what you put on your resume is true. 

This means looking at your school or college degree, reaching out to your previous employers, and checking criminal records.

Pre-employment background checks are typically done at the end of the hiring process after you’ve been offered a job. It’s up to the company to decide what information they want to verify and what their standards are.

Companies can’t just use any background check service.

For employment and other official purposes, like insurance or government aid, they can only use consumer reporting companies. These are officially recognized agencies that collect public records and create reports.

As a result, official background checks are different from simply looking someone up on a people search site.

The whole process is documented, you must be informed about the planned check, and you have the right to see the results.

Here’s a typical background screening process:

1. Disclosure: A company wanting to run a background check on you must tell you first.
2. Consent: They must ask for your written permission.
3. Investigation: The company checks your background either by themselves or with help from official services.
4. Review: Once the background check is finished, you’ll get feedback and you can request a copy of the report.

That means no pre-employment background check can be run without your knowledge and consent. You also have the right to see your report and appeal it if you believe some information is not correct.

Types of background checks

Here’s a list of common types of background checks:

• Education, to confirm you graduated from the school and have the degree you mentioned on your resume.
• Employment, to verify you’ve worked at the places and have the experience you listed on your application.
• Reference, to learn the opinion your previous employers have about you.
• Criminal, to check your legal history, including cases of felonies and misdemeanors like vandalism, public intoxication, disorderly conduct, violent or sex crimes, fraud, and embezzlement.
• Credit, to look at your financial history, including payment history, civil judgments, tax liens, bankruptcies, unpaid bills, and recent credit inquiries (excluding your credit score).
• Civil, to examine your non-criminal legal history, such as lawsuits, judgments, bankruptcies, and other violations.
• Drug, to detect recent illegal drug use.
• Driving, to confirm you have the necessary licenses and check your driving record, including any DUIs, suspensions, and traffic violations.
• Social media, to see how you behave online, including the content you post or share, and the organizations or pages you follow.

Companies typically don’t run all these checks for every candidate. What they focus on depends on the job.

For example, if you’re applying for a financial management position, your credit history might be a key factor.

On the other hand, if you’re aiming for a PR role, your social media behavior will likely be important.

In most cases, though, background checks cover education, employment, and criminal history—there’s no particular order in which screenings are performed.

How is your data gathered for a background screening

Employers can conduct background checks themselves or hire a specialized company to do it.

Background screening involves:

1. Public records, such as criminal databases.
2. Documents you provide, like a college diploma or W2 tax forms.
3. Contacting institutions directly, like your previous employers.

The less documentation you provide, the more the background check company will need to investigate, for example, contacting your college if you don’t provide your diploma.

Red flags on background checks

If you change your job title from “copywriter” to “content writer,” that shouldn’t cause any concerns.

It’s a different story if you falsely claim to be a manager or extend your dates of employment.

In general, any differences between your background information and your resume can be concerning.

Here’s a list of common red flags in background checks:

• Major crimes in your criminal record, such as fraud, sexual offenses, or theft;
• Poor credit history, especially for jobs related to finances;
• Negative feedback from previous co-workers during reference checks;
• Differences between your employment history and resume, like mismatched dates, job titles, or duties;
• Differences between your education history and resume, like incorrect dates, degrees, or schools;
• Inappropriate or illegal activity on social media;
• Signs of substance abuse.

Now that you have a general idea of the background check process, let’s take a closer look at the most common types: employment, criminal, and education.

Employment background check

Employment background checks are meant to confirm that you actually worked at the places you mentioned on your job application.

You might need to provide proof of employment, like a W2 tax form, or the screening company might do their own research.

This research can involve contacting your past employer directly, such as calling the HR department or your direct supervisor if it’s a small company, or using services like The Work Number.

Here’s some general guidance on employment verification:

• Use the exact job title as it appears on official documents—there’s some flexibility, but don’t be too inventive.
• List both the start and end dates of your employment—usually, the month and year are enough, but some companies might ask for exact dates.
• Background checks only verify the jobs you list—if you have experiences you consider irrelevant, you don’t have to include them.
• Unpaid positions may be hard to verify—if they’re not essential to the job application, it’s better to leave them out.
• You can black out your SSN and salary information on the documents you provide, but keep all employer details visible.
• The employer is the name of the company that paid your wages, as shown on your W2 tax form and similar documents.
• If you don’t allow the screening company to contact your employer, you will be asked to provide additional documentation.
• If you don’t consent to a background check altogether, the company has the right to reject your application.

Criminal background check

Criminal background checks look into your legal history. The main goal—at least officially—is to ensure you won’t be a threat to customers or disrupt the workplace.

For example, if someone is a registered sex offender, they shouldn’t be allowed to work with children, and the criminal background check is meant to prevent such situations.

Now—

It really depends on the company where they draw the line between acceptable and unacceptable criminal records.

The higher the stakes, the stricter the standards.

Criminal background checks can include national, federal, state, and county records—depending on the company, typically going back seven to ten years. 

What these checks usually reveal:

• Felonies (murder, rape, kidnapping, arson, theft over $500, etc.)
• Misdemeanors (vandalism, trespassing, theft under $500, disorderly conduct, etc.)
• Pending cases
• Dismissed cases
• Active warrants
• Pending arrests.

However, it’s up to the company to decide how deeply they want to investigate.

Education background check

Education background checks verify that you have the degree you listed on your resume.

Usually, you’ll be asked to provide details of your education, such as school names, dates of attendance and graduation, majors, degrees, or certificates.

What you should know about education verification: 

• It’s okay to list only the years of attendance, but the date of graduation should be detailed.
• Clearly specify your degree, major, and the level of degree.
• Mention only verifiable certifications you hold.
• Don’t list any education that you haven’t completed unless you’re an active student.
• Most companies verify only the highest level of education.

FAQ