Federal background checks can seem daunting—a vast, all-encompassing, and time-consuming endeavor. Whether for employment, housing, or security clearance, they can feel like a mystery, so let’s break it all down from start to finish.
Today, we’ll cover what they are, how they work, what the checks include, and why it all matters.
What Is a Federal Background Check?
A federal background check is exactly what it sounds like—an in-depth look into someone’s history through federal records. Standard background checks often only dig into local or state-level records, so federal checks are somewhat of a step up. They usually look at federal-level offenses, such as crimes the U.S. government prosecutes.
These might include tax evasion, embezzlement, or crimes committed on federal land. Still, federal checks usually expand beyond criminal records to cover things like education verification, employment history, and credit reports.
They’re a more thorough look into a person’s background, focused on federal issues that could affect their eligibility for certain positions, licenses, or even just renting an apartment.
So when is a federal background check sought after? Usually, it’s for roles that involve public safety, working with vulnerable children or adults, or financial matters. In most states, it’s also part of the hiring process for police, teachers and educators, administrators, finance executives and certified public accountants (CPAs), healthcare providers, and childcare workers.
How Do Federal Background Checks Work?
It all starts with a request. Usually, an employer or organization will submit an application to perform a federal background check, and from there, things get moving quite quickly. Federal agencies like the FBI or other government databases are tapped to gather information, and things can get very detailed.
They don’t just pull up a list of crimes; these checks can span multiple areas of your life. They’ll examine federal criminal records, but they’ll also verify your social security number, look into your work history, check your credit, and more. It’s not just about checking for wrongdoing. They want to see if what you’ve told them lines up with the facts.
Every federal background check is customized to the role you’re applying for, meaning two applications from the same company may be enacted differently. A high-level security clearance job will require a much deeper dive than an entry-level job.
When a federal background check comes back to an employer, it will either show a clean bill of health as a clear pass or a fail. However, a fail may indicate the employer needs to consider a red flag or ask for more information from a candidate.
What Does a Federal Background Check Consist Of?
A federal background check includes several key components:
Federal Criminal Records Check: This is the core check. It looks for convictions of federal crimes, from white-collar offenses like fraud to more serious issues like terrorism or weapons trafficking. Anything that involves breaking federal law can show up here.
Employment Verification: Here, they check to see if you’ve worked where you said you did. It’s not just about your past jobs either; this check will look into gaps in employment and reasons for leaving.
Education Verification: A glittering resume can be impressive, but beware. Did you really graduate from that Ivy League school, George Santos? A federal background check will confirm or deny that.
Credit Report: Credit reports aren’t done for every employee, but it’s highly likely if you’re going for a position in finance or handling money. Your financial history says a lot about you. Red flags like bankruptcy or unpaid loans could be an issue.
Professional Licenses: If you claim to have a professional license—like a nursing or legal license—that must be verified. A lapse in your certification might be a problem, and, obviously, if you’re caught lying about a professional license, you will fail the federal background check and possibly even face criminal charges.
Military Service Records: If you’ve served in the military, these records will verify your rank, service duration, and discharge status. Sadly, it’s not entirely uncommon for people to fabricate a service record to help them gain the employability edge, but a federal background check will certainly catch them out.
Drug Testing: Depending on the employer, a drug test might be part of the package, though this varies. This area highlights past drug convictions if they’re relevant to the position being applied for, such as in education or healthcare.
It’s a comprehensive sweep of your life, but the level of depth will always depend on the job or the requirements of the agency requesting the check.
How Long Do Federal Background Checks Take?
It would be great if all of this information could be found in a single database, but unfortunately, we’re not quite there yet. A federal background check can take from a few days to several weeks.
So why so long? Federal background checks involve accessing multiple databases, verifying education and employment, and sometimes even contacting past employers or institutions. These things can take time.
Typically, the process takes about one to three weeks for most basic checks, but it could drag on much longer if the check requires a security clearance or involves extensive travel or work history. Patience is key.
How Far Back Do Federal Background Checks Go?
The length of time and how far back a federal background check goes really depends on what’s being investigated. For criminal records, federal checks typically go back seven years, but for specific jobs—especially those with higher security or involving children or vulnerable populations—they might look further back. Positions in finance or government may trigger checks that look into your entire adult life.
For financial information, seven years is the standard window, though bankruptcy filings can be visible for up to ten years. For employment and education history, checks will go back as far as necessary to confirm the claims on your application.
Ultimately, it all depends on the position or purpose of the check. A federal check for a job requiring a security clearance will likely go back much further than a check for a retail position.
Federal Background Check Laws, Requirements, and Considerations
Federal background checks are carried out with specific rules and regulations. These are guidelines that employers and organizations must follow when conducting these checks:
Fair Credit Reporting Act (FCRA): This federal law dictates how your credit report can be used and how long it can be reported. For instance, if something from your credit report is being used to deny you a job, they must inform you.
Equal Employment Opportunity Commission (EEOC): Employers need to ensure that background checks don’t discriminate based on race, gender, age, or other protected classes. This is one area where companies tread very carefully because the legal knock-ons can be severe. However, problems still exist. Nearly 20% of candidates have changed their names on applications because of discrimination.
Ban the Box Laws: Some states and cities have passed laws that prevent employers from asking about criminal history on job applications, meaning the background check might come later in the hiring process.
Security Clearance Requirements: Jobs requiring security clearance often have stricter and more extensive background checks. These checks go further back, may involve interviews with people from your past, and take much longer. If you’re applying for a position with the FBI, CIA, or Secret Service, expect the process to be long and extensive.
Frequently Asked Questions
What’s the Difference Between a Background Check and a Federal Background Check?
A regular background check often focuses on local and state records—like arrests and convictions in a specific state. A federal background check digs deeper, examining federal criminal cases, including cases like tax fraud, embezzlement, or major drug trafficking. If you’re applying for a federal job or a position requiring security clearance, you’ll most likely face a federal check. For other jobs, a standard background check might suffice.
Why Would Someone Not Pass a Federal Background Check?
Not passing a federal background check can happen for a few reasons. Most obviously, having a federal criminal record—like a felony conviction—can cause issues. But it’s not just crimes. Discrepancies in your employment or education history, major financial problems, or even lying on your application can trigger a failed check. For jobs requiring security clearance, a history of drug use, financial instability, or even risky personal relationships can raise red flags.
Final Thoughts
Federal background checks are a more in-depth look at your past, reaching into federal crimes, education, employment, credit, and sometimes even military service. They’re essential for certain jobs, especially those with higher security risks. You might need to wait a while for the results, but the depth of the check ensures that only qualified, honest candidates move forward.
Getting the right background check can be the difference between an outstanding employee and one you wish you had investigated a little more. It’s not uncommon for a dazzling individual to sail through the interview stage with flying colors, but how much can you tell from a couple of conversations with an individual?
ScoutLogic provides comprehensive background checks. We go as far as is needed for the position and the company to ensure that the hire is not only the best candidate for the job but is exactly who you think they are.
David Garcia, co-founder and CEO of Scout Logic, is an industry leader in the bulk background check world. With his strategic acumen and expertise in the HR sphere, specifically in hiring, recruiting, legal compliance, background checks, and resume screening, he’s an invaluable asset and consultant.
David's counsel extends across the boards of ScoutLogic, YipitData, and Supplier.io, drawing from his impactful stints on the boards of Infutor and Avetta. With an extensive 25-year journey, he champions unparalleled B2B commercial leadership within data & analytics, significantly shaping the HR landscape.
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