Denied a Job Because of a Background Check? Know Your Rights

If you were denied a job because of a background check, it’s important to understand your rights under federal law. Employers are required to follow specific rules when running background checks on applicants, and when those rules aren’t followed, they can be held responsible.

Below, I’ll cover the most common ways employers get it wrong when pulling background checks. More importantly, I’ll explain what options may be available if you were denied a job after a prospective employer failed to follow the law.

Can you be denied a job because of a background check?

Yes. Employers are generally allowed to deny a job based on information found in a background check. Federal law does not prohibit employers from considering certain criminal history, employment history, or other reportable information when making hiring decisions.

That said, the law focuses less on whether an employer can run a background check and more on how they do it and what is on it. The background check must be accurate, and the employer must follow federal rules when obtaining and using it.

In other words, being denied a job because of a background check does not automatically mean the employer did something wrong. But it also does not mean they did everything right.

Denied a job because of a background check without proper authorization

The federal law that governs most employment background checks is the Fair Credit Reporting Act, often referred to as the FCRA. Among other things, the FCRA sets rules for how employers can obtain and use background checks when evaluating job applicants.

Before an employer can run a background check, the FCRA requires them to provide a clear disclosure and obtain your written authorization. That disclosure must be presented on its own and cannot be buried inside a job application or hidden in fine print.

Problems often arise when employers cut corners at this stage. Sometimes applicants never recall signing an authorization at all. Other times, the disclosure is packed with extra language that makes it unclear what the applicant is actually agreeing to.

When an employer runs a background check without proper authorization, that alone can create legal issues under the FCRA, regardless of what the background check ultimately shows. In those situations, the issue is not the content of the report, but the way it was obtained.

Denied a job because of wrong information on a background check

Another common issue arises when an employer relies on wrong information on a background check. Even reputable background check companies can make mistakes, and those errors can have real consequences when they affect a hiring decision.

This can include records that belong to someone else, outdated information that should no longer be reported, or employment history that does not accurately reflect your background. In some cases, the error is obvious. In others, it only comes to light after a job offer is withdrawn.

When a job denial is based on inaccurate information, the first step is usually to dispute the wrong information with the background check company. The FCRA gives consumers the right to challenge inaccuracies and have them investigated.

Denied a job after a background check without a pre-adverse action notice

Under the FCRA, employers cannot simply deny a job based on a background check without warning. Before taking adverse action, such as rescinding a job offer or rejecting an applicant, the employer must first provide notice.

This pre-adverse action notice is meant to give applicants a fair chance to review the background check and address any issues before a final decision is made. At a minimum, this typically includes a copy of the background check report and a summary of the applicant’s rights.

A rejection email sent without any prior notice, or a decision made before the applicant has a meaningful opportunity to respond, can create legal issues under the FCRA. In short, the law requires a heads-up, not a surprise.

Your rights under the FCRA if you were denied a job

When an employer fails to follow the FCRA, the law gives consumers the right to take action. The FCRA allows individuals to bring a private lawsuit against employers and background check companies that violate its requirements.

Depending on the circumstances, a person who was denied a job because of an FCRA violation may be able to recover actual damages caused by the violation. In cases involving willful violations, the law may also allow for statutory damages up to $1,000.

Importantly, the FCRA also permits a prevailing consumer to recover reasonable attorney’s fees and costs. This key provision is what makes it possible for many people to pursue these cases without paying legal fees upfront.

Whether a claim exists depends on the specific facts, including how the background check was obtained, whether proper notices were given, and whether inaccurate information played a role in the decision.

Take Action

If you were denied a job because of a background check and believe the employer did not follow the FCRA, you may have legal options worth exploring.

At Reznik Consumer Law, I focus on FCRA cases involving employment background checks, including situations where employers failed to obtain proper authorization, relied on inaccurate information, or skipped required notices.

If you have questions about what happened in your case, you can reach out to discuss your situation and better understand what options may be available.