Different Types of Employment Background Checks and What They Reveal
Different Types of Employment Background Checks and What They Reveal
Imagine hiring someone who seems perfect. Great resume. Confident interview. Strong references. Then two weeks later, you learn they lied about their degree, hid a criminal charge, faked their work history, or cannot legally do the job they were hired for.
This is why employers rely on background checks. Yet most people misunderstand what employment background checks actually include, what each type reveals, and how they protect businesses from risk.
Here is the truth.
Not all background checks are created equal. Some reveal only a small part of a person’s history. Others provide a detailed look at criminal behavior, workplace performance, and even financial responsibility. And depending on the industry, employers are often required by law to run specific types of checks before someone can be hired.
Let’s break down the different types of employment background checks used when it comes to employment, how they work, what they uncover, and when each one should be used. If you are hiring employees, contractors, volunteers, caregivers, or remote workers, this is the guide that helps you avoid costly mistakes.
By the end, you will understand exactly which background checks you need for safe and compliant hiring.
What You Will Learn
The most common types of employment background checks
What each type reveals
Which checks are required by law
How to choose the right checks for each role
The mistakes employers make when screening candidates
A step by step overview of how to run them correctly
Why Employment Background Checks Matter More in 2025
The modern workforce moves faster than ever. Remote hiring is now mainstream. Resume fraud is growing. Identity theft is at an all time high. Candidates often change jobs every year, making it harder to verify their history.
Here are a few important facts:
Almost half of all resumes contain misleading information
Education fraud increased significantly since 2020
Faked employment references are more common than ever
Remote workers are harder to verify
Criminal activity is often hidden across different jurisdictions
A proper employment background check protects:
Your company
Your customers
Your employees
Your reputation
Your financial stability
Now let’s break down every type of employment background check and what each one is designed to uncover.
1. Criminal Background Checks
This is the most commonly used type of employment background check. Employers run this to learn about a candidate’s past criminal activity.
A criminal background check may include:
Felony convictions
Misdemeanor convictions
Pending criminal cases
Arrests that are legally reportable
Warrants
Federal crimes
State crimes
County level crimes
Sex offender registry records
However, these checks can vary widely based on how they are run.
There are three levels.
County Criminal Search
This is the most accurate and most up to date source of information.
Over 70 percent of criminal cases are filed at the county court level.
Statewide Criminal Search
Covers crimes charged within a specific state.
Some states have full reporting. Others do not.
Federal Criminal Search
Reveals crimes prosecuted at the federal level such as:
White collar crimes
Fraud
Drug trafficking
Cyber crimes
Identity theft
Tax crimes
Employers often run all three to get a complete picture.
2. Identity Verification Checks
Before running any background check, employers need to confirm the candidate is who they claim to be. Identity checks prevent issues such as:
Aliases
Fake names
Stolen identities
Borrowed identity documents
False dates of birth
Fake addresses
An identity verification check may include:
Full legal name confirmation
Address history
Social Security Number verification
Alias detection
Date of birth match
Deceased person flags
Identity fraud indicators
Identity verification is the foundation of every accurate background check.
3. Employment Verification Checks
A resume can say anything. Employment verification confirms whether the information is truthful.
Employers check:
Job titles
Employment dates
Salary when allowed
Job responsibilities
Eligibility for rehire
Reason for leaving
Supervisor names
With resume fraud increasing, this check is now essential. Many applicants inflate their responsibilities, extend their job dates, or list positions they never held at all.
4. Education Verification Checks
Education fraud is one of the most common forms of resume dishonesty.
Diploma mills are everywhere. Fake degrees are easy to purchase. People often exaggerate their academic background.
An education verification check confirms:
High school diplomas
College degrees
Professional certifications
Trade school credentials
Graduation dates
Attendance dates
Fields of study
This is especially important for roles in:
Engineering
Healthcare
Finance
Technology
Education
Specialized skilled labor
5. Reference Checks
Reference checks provide insight into a candidate’s behavior, reliability, and performance from people who worked with them.
Employers typically ask:
How well the candidate performed
Strengths and weaknesses
Reliability and attendance
Reasons for leaving
Interpersonal skills
Team compatibility
Any concerns about future performance
While some candidates provide personal references, professional references are far more reliable.
6. Credit Checks
Credit checks are not used for every job. They are typically used for positions involving:
Financial access
Money handling
Sensitive data
High level trust
Corporate cards
Confidential information
Executive level roles
A credit check may reveal:
Debt levels
Late payments
Collections
Bankruptcies
Foreclosures
Judgments
It does not reveal income, bank accounts, or spending history.
Credit reports help identify financial instability or fraud risk.
7. Driving Record Checks (MVR)
If an employee is required to drive, operate a company vehicle, or transport people, employers must run a motor vehicle record check.
Driving record checks include:
DUI or DWI
Speeding violations
Accident history
Suspended licenses
Driving points
Reckless driving charges
Industries that require MVR checks include:
Delivery services
Trucking
Ride share
Construction
Home services
Nanny services
Caregiving positions
8. Drug Screening
Drug tests remain one of the most widely used types of employment background checks, especially in safety sensitive jobs.
Common types include:
Urine drug test
Hair follicle test
Saliva test
Blood test
These tests screen for substances such as:
Marijuana
Cocaine
Opioids
Amphetamines
Benzodiazepines
Barbiturates
Many workplaces have updated their policies for marijuana, but it still depends on state law and job requirements.
9. Professional License Verification
Licensed professionals must be checked through their state boards to ensure:
Their license is real
Their license is active
They have no disciplinary actions
There is no history of misconduct
Common occupations requiring license verification include:
Nurses
Doctors
Therapists
Electricians
Plumbers
Teachers
Real estate agents
Financial advisors
Pharmacists
This is one of the most important checks for regulated industries.
10. Social Media Background Checks
In 2025, employers increasingly screen candidates online. Social media reveals a person’s real behavior, not just their polished resume.
Employers look for:
Violence
Harassment
Hate speech
Drug activity
Threats
Sexual misconduct
Dishonesty
Signs of illegal behavior
Contradictions with job claims
They also look for positive indicators:
Professional engagement
Leadership
Community involvement
Strong communication skills
Social media checks help protect company culture and reputation.
11. International Background Checks
If a candidate lived or worked outside the United States, employers may need international checks. This includes:
Foreign criminal checks
International employment verification
International education verification
Passport and identity validation
Processing times can vary depending on the country.
12. Sanctions and Watchlist Checks
Some roles require screening against global lists such as:
Terrorist watchlists
Government sanctions lists
Financial crimes lists
Foreign political exposure lists
This is required for:
Finance
Defense
Transportation
Government roles
13. Civil Court Record Checks
These checks identify non criminal issues like:
Lawsuits
Discrimination claims
Employment disputes
Restraining orders
Debt judgments
Evictions
Civil court cases often reveal behavioral patterns you will not see in criminal records.
14. Work Eligibility Verification (I 9)
Employers must confirm a candidate is legally allowed to work in the United States.
This is usually done through:
Form I 9
E Verify where required
It protects companies from hiring violations and federal penalties.
15. Healthcare Sanctions Checks
Required for jobs in medical fields.
Checks include:
OIG exclusion list
SAM.gov listings
State medical board sanctions
Medicare or Medicaid fraud records
How to Choose the Right Background Checks for Each Role
Employers should tailor checks based on job responsibilities.
For entry level admin roles
Identity verification
Employment verification
Criminal check
For finance and accounting
Credit check
Criminal check
License verification
For driving based jobs
MVR driving record
Criminal check
Drug test
For healthcare
License verification
Criminal check
Healthcare sanctions check
For executive hires
Full background check suite
Credit check
Criminal check
Reference verification
Social media screening
Common Mistakes Employers Make With Background Checks
Choosing low quality online databases
Skipping county level searches
Not verifying identities first
Failing to follow FCRA compliance
Not getting written consent
Not providing adverse action notices
Using outdated or inaccurate data
Avoiding these mistakes keeps your hiring process safe and legally compliant.
Employment Background Checks Are Now a Hiring Essential
Every company, large or small, benefits from proper background checks. They reduce risk, prevent fraud, protect customers, ensure workplace safety, and improve long term retention.
When employers understand the different types of background checks and use the right combination for each role, they make smarter, safer, and more strategic hiring decisions.
