An Employer’s Guide to Indiana Background Checks

Comprehending the ins and outs of the hiring process in Indiana can feel overwhelming for both employers and job seekers. Background checks, in particular, are an area where confusion is common—but understanding how they work is essential for ensuring a fair, compliant, and effective hiring process.

 Background checks in Indiana are a common part of the hiring process. They help employers verify a candidate’s history while ensuring compliance with state and federal laws.  Both employers and applicants have rights that must be respected throughout the process.

Whether you’re an employer looking to make informed hiring decisions or a candidate preparing for a new opportunity, knowing your rights and responsibilities can make all the difference.  Read on to understand the background report process within Indiana and how employers and employees are protected. 

What Is an Indiana Background Check?

An Indiana background check is a review of an individual’s personal, professional, and sometimes financial history. Employers use these checks to verify information provided during the hiring process and to assess whether a candidate is a good fit for a role.

It’s important to note that background checks are not intended to be discriminatory. Instead, they provide employers with a clearer picture of a candidate’s qualifications, reliability, and overall suitability for a position.

In some industries—such as education, healthcare, and positions involving vulnerable populations—background checks are required by law. In other cases, employers use them as a precautionary measure to reduce risk and avoid potential legal complications.

Why Background Checks Matter

Employers rely on background checks for several key reasons:

• To verify the accuracy of a candidate’s resume
• To maintain a safe work environment
• To protect company reputation
• To reduce the risk of negligent hiring claims

For candidates, background checks are equally important. They ensure that hiring decisions are based on verified information rather than assumptions or incomplete data.

What Does an Indiana Background Check Include?

The scope of a background check can vary depending on the role, industry, and employer. However, most checks include a combination of the following:

• Motor Vehicle Records Search: If included within the scope of the background report, a Motor Vehicle Report (MVR) searches the state of Indiana Department of Motor Vehicles (DMV) to verify the status of the provided driver’s license information and identify any driving-related violations or reported accidents. The report outlines the type of license held by the candidate, along with any endorsements. The scope of results returned covers 3 years of driving history.
• Criminal Records Search: Criminal history checks identify a candidate’s pending criminal cases and convictions, including details such as the offense type, date, and severity. While this information may be considered during the hiring process, the presence of a criminal record does not automatically disqualify a candidate from employment.
• Education Verification: Education verification confirms an individual’s academic history, including institution names, addresses, contact information, dates of attendance, and certificates earned. Employers use these checks to validate a candidate’s qualifications and ensure the accuracy of the information provided.
• Drug Testing: Pre-employment drug testing typically involves a 5-panel test that screens for amphetamines, cocaine, opiates, PCP, and THC in the applicant’s urine. These screenings help maintain a safe and productive workplace. While they detect recent drug use, they cannot determine a history of past substance abuse.
• Pre-Employment Credit Report: While some states prohibit credit reports from being conducted in the hiring process, in Indiana, a pre-employment credit check reviews a candidate’s credit history, including payment patterns, accounts in collection, and bankruptcies. Employers use these search components to assess financial responsibility,  particularly for roles involving financial oversight.
• Employment Verification: Employment verifications confirm a candidate’s prior work history, including employer names, addresses, contact information, dates of employment, and positions held. Employers use these checks to identify gaps in employment and detect omitted employers.

How Far Back Does an Indiana Background Check Go?

If an employer decides to conduct a background check, it’s important for candidates to understand what is included and how far back the background check goes. The answer isn’t always straightforward—it depends on the type of background check, the role, and the organization conducting it.

A common guideline to keep in mind is the 7-year rule under the Fair Credit Reporting Act (FCRA). In many cases, consumer reporting agencies are limited to reporting certain negative information—such as civil suits, judgments, and some criminal records—only from the past seven years.

However, there are important exceptions to this rule.

Unlike some states that strictly limit criminal background reporting to seven years, Indiana does not impose a firm statewide restriction on how far back criminal convictions can be reported. This means that, depending on the circumstances, an Indiana criminal background check may go back further than seven years.

There are also specific categories with different reporting timelines. For example:

• Bankruptcies may be reported for up to 10 years under the FCRA
• Certain high-salary positions (typically $75,000 or more) may allow broader reporting
• Identity and verification checks generally stay within a seven-year scope, depending on the context

Ultimately, the timeframe varies based on the type of check and the legal allowances that apply.

How Long Does It Take to Get a Background Check in Indiana?

Turnaround time for a background check in Indiana can vary widely depending on several factors. Basic checks - such as identity verification or database screenings - can sometimes be completed within a few hours to a couple of days.  More comprehensive checks, especially those involving court record searches or multiple jurisdictions may take several days or even a few weeks.

Different industries require different types of background checks, with some being more thorough than others. 

Factors that affect timing include: 

• The depth and scope of the check
• The number of locations being searched
• Whether records must be retrieved manually
• The responsiveness of past employers or institutions

In some cases, employers attempt to conduct background checks themselves, which can significantly increase the time and effort required. This often involves navigating court systems, verifying records, and ensuring legal compliance. Because of this complexity, many employers choose to work with professional screening providers like ScoutLogic to streamline the process, ensuring compliance and reduce administrative burden.

Indiana Background Check Laws & Requirements

Background checks in Indiana are governed by a combination of federal and state laws to protect both employers and job applicants.   These regulations ensure that checks are conducted fairly, transparently and with proper consent.

Fair Credit Reporting Act (FCRA)

The FCRA is a federal law that applies when employers use a third-party Consumer Reporting Agency (CRA) to conduct background checks.

Under the FCRA, employers must:

• Provide clear written disclosure that a background check will be conducted
• Obtain written authorization from the candidate
• Give the candidate access to the report if requested
• Follow a formal adverse action process if they decide not to hire based on the findings

This process includes notifying the candidate and giving them an opportunity to respond or dispute inaccurate information before a final decision is made.

Indiana Code § 10-13-3

This statute governs Limited Criminal History reports in Indiana. These reports include records of felonies and misdemeanors prosecuted within the state.

To be included in a report:

• A case must have a final disposition, unless it occurred within the past year
• Only employers may request these records through law enforcement agencies

Consumer reporting agencies, on the other hand, typically gather criminal history information by searching county court records rather than accessing Limited Criminal History reports directly.

Indiana Code § 24-4-18

This law is designed to protect job applicants by ensuring the accuracy of background check reports.

It prohibits background screening providers from:

• Reporting expunged or sealed records
• Including information that is known to be inaccurate
• Failing to update records with changes made at least 60 days prior

These protections help ensure that candidates are evaluated based on accurate and up-to-date information.

Ban the Box Law 

In Indiana, “Ban the Box” laws apply only to public sector employers within the Executive Branch. These employers are prohibited from asking about criminal history on initial job applications.

However, this restriction does not apply to private employers, who may legally ask about criminal history earlier in the hiring process.

An exception exists when a specific conviction would automatically disqualify a candidate from the role.

Indiana Senate Bill 312

Indiana Senate Bill 312 prevents local governments—such as cities and counties—from creating their own “Ban the Box” ordinances.

This ensures consistency in hiring practices across the state and helps protect employers from potential liability tied to varying local regulations.

Frequently Asked Questions

What Are the Rules for Background Checks in Indiana?

The rules surrounding background checks in Indiana are detailed but designed with fairness in mind. Employers must always obtain consent, follow proper disclosure procedures, and ensure compliance with both federal and state laws.

For candidates, these rules provide transparency and the opportunity to review and challenge any information that may affect their employment prospects.