Background checks are a critical part of the hiring process—but even in 2025, many employers are still making costly compliance mistakes. These errors in background check compliance 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 and remain diligent about compliance with background check rules.
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. Therefore, understanding background check compliance at the local level is critical.
Stay up to date on state-specific background check laws, and configure your screening process accordingly to ensure compliance.
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 that prioritizes background check compliance.
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 Using Outdated or Inaccurate Reports
Relying on background data that is outdated or not verified can open the door to negligent hiring claims or unfair denials, breaching compliance requirements.
Partner with a screening provider that ensures real-time data verification and checks for report accuracy to maintain compliance.
5. Applying Inconsistent Screening Criteria
Applying different screening standards to different roles—or worse, different candidates—can lead to discrimination claims and EEOC violations. This inconsistency could undermine background check compliance.
Standardize your background check policy based on job relevance and document your criteria clearly while ensuring compliance is achieved.
How to Stay Compliant in 2025
Audit your current screening process with compliance in mind.
Review your disclosure, authorization, and adverse action policies ensuring that they meet compliance standards.
Train HR staff on FCRA and state-specific laws for effective background check compliance.
Use a background check partner that automates compliance to prevent any compliance oversights.
Final Thoughts
Compliance is not optional—it’s essential. With increasing scrutiny and evolving regulations surrounding background checks, now is the time to tighten your screening practices.
