Many employers conduct background checks in their hiring process that include criminal history searches. 

Employers often rely on third-party background check companies to prepare these reports. Those companies frequently use automated systems that can contain inaccurate information, including records that belong to someone else, outdated criminal history information, or mistakes in employment or conviction records. 

When that happens, you may lose out on a job opportunity because of an error, not because of your actual qualifications. Making matters worse, you might not even know that your report contains errors until it costs you a job opportunity. 

Fortunately, federal and state laws give you the right to review your report and challenge errors. Understanding how these mistakes occur is the first step toward correcting them. 

What Are Background Check Errors? (And How They Happen) 

A background check error occurs when a consumer reporting agency includes false, incomplete, misleading, or outdated information in a report used for employment decisions. 

Many errors stem from automated matching systems. Screening companies pull data from court records, public databases, and employment records. If those sources are outdated or improperly matched, incorrect information can appear in a report. 

One common problem is a “mixed file,” where a report might attribute one person’s criminal conviction to someone who has a similar name. Or, a report might continue to list charges that were dismissed years earlier because the underlying database was never updated. Criminal offenses could be mislabeled, or employment records may contain incorrect dates. 

Because employment background checks rely on large amounts of data, even a small mistake can create significant consequences for job applicants. 

Why Background Check Errors Are Dangerous for Job Seekers 

A background check often comes near the end of the hiring process. As a result, a single error can stop a company from moving forward with a candidate or prompt it to withdraw an offer. 

The financial impact to the job seeker can be immediate. Losing a position may mean lost income, delayed career advancement, and additional time spent searching for work. The reputational consequences can be equally serious when inaccurate information causes employers to question an applicant’s background or qualifications. 

These mistakes also undermine fair hiring. It isn’t fair when inaccurate information influences hiring decisions, rather than an applicant’s actual qualifications. 

How to Fight Back and Resolve Background Check Errors 

The federal Fair Credit Reporting Act (FCRA) (FCRA) and state laws protect workers and job applicants affected by mistakes in employment screenings. For example, California’s Investigative Consumer Reporting Agencies Act (ICRAA) provides additional protections for consumers who are the subject of background checks. These laws can help you correct errors so employment decisions are based on accurate information.  

Depending on where you live, you may have other rights under state or local law that affect how employers use criminal background information.  

The following sections explain common warning signs, key rights under the Fair Credit Reporting Act, and steps you can take to challenge inaccurate information and protect your career. 

Common Red Flags: Mixed Files, Outdated Records, and False Histories 

Several types of background check errors appear repeatedly in employment screening disputes. 

Mixed files are a common background check error and occur when information from another person appears on your report. 

Watch for records that should no longer appear because a case was dismissed, expunged, sealed, or otherwise resolved. As states enact “clean slate” laws to automatically seal certain types of records, background screening companies need to ensure that they do not continue appearing in reports. 

Sometimes a report has information that is partially accurate, but it gets details wrong. Inaccurate employment histories, incorrect job dates, duplicate records, or reports that fail to reflect the final outcome of a criminal case could be problem. 

Know Your Consumer Reporting Rights Under the FCRA 

If a background check contains flawed information, the FCRA may give you a chance to correct it. It regulates consumer reporting agencies, including many companies that prepare employment background checks.  

The FCRA generally requires background check companies to follow reasonable procedures designed to ensure the maximum possible accuracy of the information they report. When reports contain errors, consumers may have the right to dispute the error and request an investigation. 

The law also gives applicants a chance to identify problems before a hiring decision becomes final. If an employer plans to withdraw a job offer based on a background report, it generally must first provide a Pre-Adverse Action Notice, a copy of the report, and information about the applicant’s rights. 

Step-by-Step Guide to Filing an FCRA Dispute 

If you spot an error in a background report, act quickly. The sooner you identify the mistake and gather supporting documents, the sooner you can begin the dispute process. 

First, ask for a copy of the report and review it carefully. Compare the information against court records, employment records, identification documents, and other records you have available. 

Next, gather documents showing that the information is incorrect. Helpful evidence may include court dispositions, corrected records, identity documents, or employment records. 

Then submit a written FCRA dispute to the consumer reporting agency that prepared the report. Identify each disputed item and provide supporting documentation when possible. 

Consumer reporting agencies generally must investigate disputed information and typically complete that investigation within 30 days. If information cannot be verified or is found to be inaccurate, it may need to be corrected or removed. 

Protect Your Consumer Reporting Rights with Outten & Golden 

Background check errors are more common than many applicants realize, and even a single mistake can affect employment opportunities, income, and professional growth. 

If a job offer was rescinded or your career was otherwise affected by an inaccurate background report, contact Outten & Golden to learn more about your legal options. Our intake team is available Monday to Friday, 8:30am to 9pm, eastern time at 877-468-8836. 

This article is provided for general informational purposes only. It is not legal advice and may not reflect the most current law or apply to your facts or jurisdiction. Reading this article or using this website does not create an attorney-client relationship with Outten & Golden LLP. You should consult a qualified attorney about your specific situation.