Background checks are a critical part of the hiring process—but even in 2025, many employers are still making costly compliance mistakes. These errors can result in lawsuits, fines, and reputational damage. In this blog, we break down the most common background screening pitfalls and how to avoid them.
1. Not Obtaining Proper Authorization
One of the most frequent violations of the Fair Credit Reporting Act (FCRA) is failure to obtain clear, standalone written consent before conducting a background check. Employers must ensure that the authorization form is separate from the job application and free of liability waivers or extra language
Use compliant, standalone disclosure and authorization forms for every candidate.
2. Ignoring State and Local Laws
Background check laws vary widely by jurisdiction. For example, “ban the box” laws, salary history bans, and marijuana screening restrictions all differ by state and even city.
Stay up to date on state-specific background check laws, and configure your screening process accordingly.
3. Mishandling Adverse Action
If you decide not to hire someone based on background check results, you must follow the adverse action process:
Send a pre-adverse action notice
Include a copy of the background report and a “Summary of Rights” under the FCRA
Give the candidate time to respond (typically 5 business days)
Then, send the final adverse action notice
Automate this process through a compliant background screening platform.
4. Using Outdated or Inaccurate Reports
Relying on background data that is outdated or not verified can open the door to negligent hiring claims or unfair denials.
Partner with a screening provider that ensures real-time data verification and checks for report accuracy.
5. Applying Inconsistent Screening Criteria
Applying different screening standards to different roles—or worse, different candidates—can lead to discrimination claims and EEOC violations.
Standardize your background check policy based on job relevance and document your criteria clearly.
How to Stay Compliant in 2025
Audit your current screening process
Review your disclosure, authorization, and adverse action policies
Train HR staff on FCRA and state-specific laws
Use a background check partner that automates compliance
Final Thoughts
Compliance is not optional—it’s essential. With increasing scrutiny and evolving regulations, now is the time to tighten your screening practices.
