Fair Credit Reporting Act

• The Fair Credit Reporting Act is a federal law applying to background checks done by "consumer reporting agencies," not companies conducting their own background checks. It requires written consent to obtain a prospective employee's credit report. The employee can request a copy and appeal instructions if employment is denied based upon the report's information. Some states, such as California, have stronger background check laws. Many states' labor codes and fair employment guidelines also restrict what a background check can include.
  
  

Information Allowed in Background Checks

• Federal and state laws allow employers to check an applicant's credit history, education records, driving record, employment history and character references with the person's consent. Other permissible information includes vehicle registration, sex offender registries, property ownership, military records and bankruptcies less than 10 years old -- although Title 11 Chapter 5 Subsection 525 of the U.S. Code prohibits using it against an employee. Specific state laws are available from the U.S. Equal Employment Opportunity Commission's local field office.
  
  

Information Not Allowed in Background Checks

• Federal law prohibits background checks from including tax liens or delinquent accounts paid off more than seven years ago, as well as civil suits or judgments and arrest records more than seven years old. Other negative information more than seven years old also is prohibited. However, Section 605 of the Fair Credit Reporting Act exempts jobs paying more than $75,000 a year from these reporting restrictions. Criminal convictions can be reported indefinitely under federal law but some state laws still impose a seven-year limit. Arrest records are usually not in the report, but court records can be.
  
  

Educational and Military Service Records

• Federal law allows the release of student information including name and address, attendance dates, activities and degrees unless the student prohibits such release in writing. Websites for universities and colleges often include a "degree verification" section that anyone can access. However, you cannot obtain transcripts without the student's consent, according to both federal and state law.
  
  Military service records are available only under certain circumstances, according to the federal Privacy Act. Records requests without the person's consent must be through the Freedom Of Information Act. However, you can obtain a person's name, rank, duty assignments, duty status, salary and awards without consent.
  
  

Social Networking Sites

• Social networking sites such as Facebook, MySpace, Twitter and LinkedIn provide employers with another potentially vast, often readily accessible, source of information on job applicants. A June 2009 survey of more than 2,600 hiring managers by CareerBuilder found that 45 percent of employers use social networking sites to search job applicants, up from 22 percent in 2008. The most consulted site is Facebook, but 11 percent reported searching for applicants' blogs.