The main background check laws for jobs in the United States are the Fair Credit Reporting Act (FCRA), a federal statute that controls how employers buy and use reports from screening companies, and the federal anti discrimination laws the EEOC enforces, with many states and cities adding their own limits on top.
In practice that means three things for you. The employer needs your written permission before it orders a report. It must warn you and show you the report before rejecting you because of it. And it may not use what it finds to treat people differently because of race, sex, disability or other protected traits. This page explains each rule, names the official source, and shows what to do if a rule was broken. Treat it as a starting point rather than legal advice.
Quick answers
Main federal law
Fair Credit Reporting Act, enforced by the FTC and CFPBBefore a report
Standalone written notice and your written permissionBefore a rejection
A copy of the report and a summary of your rightsTime limits
7 years for most items, 10 for bankruptcies, none for convictionsDiscrimination
Same rules for everyone, per the EEOCDeadline to sue
2 years from discovery, 5 years at most
What is a consumer report background check?
Under the FCRA, a background report that an employer buys from a background screening company is a "consumer report". The screening company is a "consumer reporting agency", or CRA. The label is broad: it covers criminal records, credit history, driving records, verified job and school history, and even reports built from interviews about your character. If an outside company gathers it and sells it for a hiring decision, the FCRA applies.
| What it is | Covered by the FCRA? |
|---|---|
| Criminal, driving or credit report bought from a screening company | Yes |
| Employment or education verification done by a screening company | Yes |
| Interviews with neighbors or coworkers about your reputation (an investigative consumer report) | Yes, with extra notice |
| The hiring manager calling your references directly | No, though other laws still apply |
| The employer searching public court sites or your public posts itself | Usually no, but anti discrimination laws still apply |
The FTC's guide for workers, Employer Background Checks and Your Rights, sums up the same points in plain language.
FCRA background check rules employers must follow
- Disclosure: a written notice, in a document of its own and not buried in the application, saying a report may be used for employment decisions.
- Permission: your written authorization before the report is ordered. You can refuse, but the employer can then stop considering you.
- Certification: the employer promises the screening company it gave notice, got permission and will not misuse the report.
- Pre adverse action notice: before deciding against you because of the report, a copy of it and "A Summary of Your Rights Under the Fair Credit Reporting Act".
- Adverse action notice: after deciding, the screening company's name, address and phone, a statement that it did not make the decision, and your right to dispute and to a free copy within 60 days.
- Safe disposal: shredding or wiping the report when it is no longer needed.
These steps come from the FTC's guide for businesses, Using Consumer Reports: What Employers Need to Know. The same rules apply to current employees, so a post hire check needs notice and permission too.
Read about the form itself on our background check consent form page.
How far back reports can go
The FCRA sets time limits on some items in a consumer report, found in section 1681c of the law.
| Item | Federal reporting limit |
|---|---|
| Arrest records without a conviction | 7 years |
| Civil suits and civil judgments | 7 years |
| Paid tax liens and accounts sent to collection | 7 years |
| Bankruptcies | 10 years |
| Criminal convictions | No federal time limit |
Those seven and ten year windows are lifted for positions with a yearly salary of 75,000 or more, and a number of states set shorter limits. See how far back a background check goes for more.
So yes, a civil suit can appear in a background report, usually within that 7 year window, when the screening company searches civil court records. Many basic packages search criminal courts only.
Anti discrimination rules and fair chance laws
The EEOC's guide Background Checks: What Job Applicants and Employees Should Know says employers must apply the same background rules to everyone, whatever their race, national origin, color, sex, religion, disability, genetic information or age. A policy that looks neutral can still be illegal if it shuts out far more people of one group and is not tied to the job.
For criminal records, the EEOC's arrest and conviction records page tells employers to weigh the nature of the offense, the time that has passed and the duties of the job. Being arrested is not proof that a person committed the offense.
Many states and cities also have fair chance or "ban the box" laws that push criminal history questions until after an interview or a conditional offer. The federal Fair Chance to Compete for Jobs Act does the same for most federal agencies and contractors. More on records in our criminal background check guide.
Employment background check laws by state
States can add rules on top of the FCRA. Common examples include shorter look back periods, limits on credit checks, limits on using arrests that did not lead to a conviction, and fair chance timing. Two examples confirmed in the state code:
| State | Example rule | Official text |
|---|---|---|
| California | Employers may use a credit report only for listed positions, such as managers, law enforcement and roles with access to large sums of cash or certain personal data. | Labor Code 1024.5 |
| Washington | Credit information may be used only when it is substantially job related and the reasons are given to you in writing, or when the law requires it. | RCW 19.182.020 |
Every state is different. Start at our background checks by state page, then confirm on the state's own site.
Law enforcement and other jobs with deeper checks
A law enforcement background check for employment usually goes much further than a retail check. Police and corrections agencies, schools, child care, healthcare and some finance jobs often require fingerprints run through state records and the FBI, because a statute says so. Police agencies may add interviews with past employers and neighbors, a review of your finances and a polygraph. Government agencies running their own checks follow their own laws, and an investigation done by a screening company still falls under the FCRA. See fingerprint background checks and federal background checks.
Can you sue a background check company?
The FCRA lets people sue in federal or state court when a screening company or employer breaks the law, for example by reporting outdated items, mixing you up with someone else and not fixing it, or ordering a report without your permission. Depending on whether the violation was careless or willful, a court can award actual damages, set damages, punitive damages and attorney fees. Many background check class action lawsuits and settlements come from missing standalone disclosures or skipped pre adverse action notices.
Time matters. Under section 1681p, a case must be filed within 2 years after you discover the violation and no later than 5 years after it happened.
Before talking to a background check attorney, put your dispute to the screening company on paper and hold on to every notice and letter you receive. Our dispute guide shows how. You can also file a complaint with the CFPB.
What a fair background check policy usually covers
If you are an applicant reading an employer's pre employment or post hire background check policy, or you volunteer with a youth sports or nonprofit group, a fair policy usually states:
- which roles get checked and what each check includes
- when in the process the check happens, often after a conditional offer
- how consent is collected, in a standalone form
- how records are weighed, using the offense, time passed and job duties
- how a person can explain or dispute a result before a final decision
- who can see the report and how it is stored and destroyed
This page summarizes federal sources and two state codes. Laws change and your facts matter, so check the FTC, CFPB, EEOC and your state's official pages, or bring your papers to a lawyer who handles job and consumer cases, or to a legal aid clinic.
Questions people ask
Is it legal to run a background check without permission?
For a job, an employer that buys a report from a screening company needs your written permission first. An employer looking at public records or public posts on its own does not need that consent under the FCRA, though discrimination laws still apply.
What is on a consumer report for a background check?
It depends on what the employer orders. It can include criminal court records, identity and address history, driving records, credit history and verified job or school history.
What makes a background check FCRA compliant?
A standalone written disclosure, your written permission, a pre adverse action notice with the report and summary of rights, and a final adverse action notice. The screening company must also follow reporting limits and reinvestigate disputes.
Can a civil lawsuit appear on a background check?
It can if the screening company searches civil court records, and the FCRA allows civil suits and judgments to be reported for 7 years for most jobs. Many basic checks look at criminal records only.
Can I sue a background check company for a wrong report?
The FCRA allows lawsuits when a company fails to follow the law, such as not fixing a proven error. File a written dispute first, keep records, and get advice from an attorney who takes FCRA cases.
Do background check laws apply after I am hired?
Yes. If an employer buys a new report on a current employee from a screening company, the same notice, permission and adverse action steps apply.