Looking back: Few restrictions on background checks

Q         How far back are we allowed to verify information (both criminal and previous employer references) when conducting a background check?

A   It’s not uncommon for an employer to try to find out about a person’s work history, education, criminal record, financial history, medical history, or use of social media. In many instances, an insufficient background check may result in direct loss to an employer if it failed to learn some adverse information about a new hire. It may also become a party to a long and much unwanted litigation for a negligent hiring claim, which is often filed when someone believes a company should have learned about an employee’s criminal or dangerous background through a reasonable background check.

Before 1998, the Fair Credit Reporting Act (FCRA) restricted the reporting of criminal convictions to the previous seven years. Currently, however, the Act allows criminal convictions to be reported without limitation, but it maintains a number of other restrictions.

You cannot inquire into the “civil suits, civil judgments, and records of arrest that, from the date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.” Bankruptcies can only be reported for 10 years. Tax liens, accounts placed for collection, and other adverse information can also only be reported for seven years. It’s worth noting that previous employment isn’t “adverse information” even if the report discloses some unwanted or negative information.