“Failed” Background Checks: The Complete Guide for Employers and Candidates

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Why run background checks

Reasons why a background check fails

What to do when a candidate "fails" a background check

Background check policies

Sending a pre-adverse action notice

Waiting period before adverse action

Making a hiring decision

Sending a final adverse action notice

Partnering with Checkr

A “failed” background check means the background screening report has uncovered “hits” or alerts on a job candidate. Depending on the role to be assumed by the candidate and the information being reported, a failed background check generally does not automatically disqualify them from the position.

When your background screening returns unexpected results, it’s important to review the report based on your company’s background check policy and hiring procedures. Careful consideration can help you make an informed decision about how you should proceed with the hiring process.

Note: As an organization, Checkr does not use pass or fail language with regard to background checks. However, we know that many people do use these terms and have questions about how to proceed when screening results require extra consideration.

Checkr is a leader in advocating for the business benefits of fair chance hiring and empowering employers to fairly assess their candidates' history. Checkr tools like Assess can help employers implement and scale fairer background screening adjudication processes.

There are many reasons why a candidate may “fail” a background check, such as criminal history, discrepancies in employment or education history information, an unsafe driving record, or a failed drug test. Different types of background checks return varying kinds of information that may or may not be relevant to the job offer, so careful consideration of the results will aid in an informed hiring decision. Here’s a look at the types of information that various background screenings may return.

A candidate’s criminal history can be reported through a criminal background check, which may reveal felony and misdemeanor convictions, infractions, or violations. Arrests that didn’t lead to prosecution, charges that the candidate was later acquitted of, and dismissed charges may also appear on a criminal record in some cases.

Criminal convictions vary by type and degree. As a result, a criminal record may not disqualify a candidate from proceeding with a job offer. In some cases, a criminal record could bar a candidate from a particular role based on the guidelines established by federal, state, and local laws and regulations, or an organization’s hiring policies. For example, a candidate with a fraud conviction may be ineligible for a role in financial services.

An employment verification is a type of background check that confirms the employment history information on a candidate’s resume or application. A failed employment verification may indicate a discrepancy between the information listed on a candidate’s resume and information discovered through the verification process, such as invalid employment dates.

An education verification provides information about the validity of a person’s academic credentials from colleges, universities, high schools, or GED equivalencies. A failed education verification usually indicates a discrepancy between the information reported by the candidate and the information reported by the institution, such as a lack of degree or a different program of study.

Driving record (MVR) checks search state department of motor vehicles databases for information about a candidate’s driving record, including license status, type, class, accident reports, traffic violations, and driving-related convictions. An MVR check that shows a suspended license or unsafe driving practices may disqualify the candidate from being eligible for a driving-related role.

Employment drug tests detect the presence of controlled substances or alcohol. If a candidate fails a drug screen, the presence of a substance has been detected at a level above the predetermined threshold.

In certain jobs where impairment could create liability in the workplace, a failed drug test may disqualify the candidate from the role. However, regulations for drug testing and hiring decisions vary by location and industry, so employers should follow applicable state laws and the advice of legal counsel when determining whether to take adverse action.

Because background checks return information from many different sources, background check alerts may not always be relevant to a job offer. There is also a risk that the unexpected information may be an error. As a result, both employers and candidates can benefit from reviewing best practices for what to do after a failed background check.

Employers often have specific guidelines to follow before taking adverse action following a failed background check. Your priority should always be legal compliance with the federal Fair Credit Reporting Act (FCRA), related state laws, and any local Ban the Box or other hiring-related laws. You may also review and implement Equal Employment Opportunity Commission (EEOC) guidance. Because hiring criteria can vary by state, employers should consult with their legal team to ensure compliance with best practices during the screening and hiring process.

When faced with challenging hiring decisions, here are five steps to consider:

If you receive a pre-adverse action notice from a prospective employer, you have limited time to respond and take further action. Here are some steps to take as a candidate:

If you’re starting a job search, you may consider ordering a personal background check before applying for jobs so you can preview what potential employers may see. Ordering a background check on yourself gives you the opportunity to anticipate questions and review the report for errors or inaccuracies.

When making hiring decisions informed by background checks, employers should comply with all federal, state, and local laws and regulations. Here are some key legal considerations for employers.

Employers must comply with the federal Fair Credit Reporting Act (FCRA) when working with a CRA to obtain background checks and credit reports. FCRA requirements include having a permissible purpose to conduct background checks, providing written disclosure and obtaining consent from the candidate prior to conducting a background check, providing a copy of the background check results, and following the adverse action process should the results of a background screening negatively impact a hiring decision.

The Equal Employment Opportunity Commission (EEOC) is a federal agency that enforces Title VII of the Civil Rights Act of 1964, which forbids employment discrimination based on race, sex, color, religion, or national origin. To avoid unintentional discrimination, the EEOC recommends employers conduct the “nature-time-nature” test which considers the nature of the criminal offense, how long ago it occurred, and whether it’s relevant to the position in question. You may want to conduct an individualized assessment, allowing the candidate to provide more information and context around the offense.

More than 180 states and local jurisdictions have passed Ban the Box laws that impact when employers can ask about a candidate’s criminal history or affect the timing of when employers can request a background check. Your legal counsel can help you determine what steps to take to comply with any Ban the Box laws in your area.

Learn more about the potential impact of adverse information returned during the background check process by reviewing the answers to these frequently asked questions.

A job offer may be withdrawn after a background check, depending on an organization’s policies, laws, and regulations. In the event of a failed background check after a job offer or a failed background check after starting a job, an employer must still follow the adverse action process established by the FCRA and provide new hires with the opportunity to dispute or explain the information.

A background check may show if you were fired if the prospective employer orders an employment verification as a part of the background check process. However, whether or not this screening will inform the prospective employer about your termination will depend on whether your former employer opts to provide that information. Checkr’s employment verifications include details such as the employer’s name, dates of employment, and position titles, but do not provide information about a candidate’s departure.

A failed drug test may appear on a background check if it was included in the screenings the employer elected to conduct as part of a pre-employment background check. The employer will be notified if you test positive for any substance(s) included in the panel that was ordered.

Whether a DUI will cause you to fail a background check for a job will depend on the nature of the position, the prospective employer’s policies, and laws and regulations in your area. DUIs may appear on either a criminal background check or driving record check, depending on how the specific state classifies the charge. Regardless, an employer must follow the adverse action process if a DUI conviction will impact the hiring decision.

When a background check reveals unexpected information about a job candidate, it’s important to make fair hiring decisions while complying with legal requirements. By carefully assessing the results of a background check and following a consistent evaluation process, you can make more confident and compliant hiring decisions.

Checkr offers multiple background screening options through our advanced platform for fast, accurate results. Built-in compliance tools also streamline adjudication and support fair hiring. Our customizable packages and transparent pricing provide the right fit for any size business to hire confidently and quickly. Get started with Checkr today.

About the author

Hayley Harrison writes about a wide range of business topics and best practices, including background checks, candidate experience, and recruitment and retention. Her work includes educational articles, e-books, and blog posts.