QUICK ANSWER
Yes. An employer can deny you a job without telling you why. However, the decision can’t be based on unlawful discrimination. If a background check or other consumer report played a role, the employer must follow certain rules set out under the Fair Credit Reporting Act (FCRA), including providing you with required notices and a copy of the report. If the report contains errors, you have the right to dispute them.
Background Checks: One of the Most Common Hidden Reasons for a Job Rejection
Employers may use background checks to review criminal history, credit information, employment records, personal data, or other info.
When a third-party company prepares the employment background check report, it is generally considered a consumer report under the FCRA. Because it falls under the FCRA, an employer must inform that you’ll be subject to a background check and you must provide authorization.
What Happens When a Consumer Report Costs You a Job?
If a consumer report costs you a job - the FCRA requires specific steps that must be followed, including providing you with a copy of the report, along with a pre-adverse action notice and adverse action notice, and an opportunity to dispute inaccurate information. You can also work with a background check attorney at point in the dispute process and to file a lawsuit and seek compesnation, if needed.
Pre-Adverse Action Notices
Before making a final decision, the employer must notify the applicant that it may take adverse action (e.g. a job rejection). This allows you time to review the report and identify errors. While it is also meant to provide you time to file a dispute over any errors, employment decisions are often made more quickly than the dispute process proceeds.
Copies of the Background Report
The employer must provide you with a copy of the report and a summary of your rights under the Fair Credit Reporting Act. If the employer later denies you employment, it must provide a final adverse action notice. This notice must identify the reporting company that ran the background check and explain that you have a right to file a dispute if the report contains errors.
Your Right to Dispute Errors
Applicants may dispute information that is inaccurate, incomplete, outdated, unreportable, or someone else’s. The background check company must investigate and correct or remove information that can’t be verified.
Your Rights Under the Fair Credit Reporting Act (FCRA)
When an employer uses a background screening report, applicants generally have the right to:
- authorize the report before it’s run
- receive a copy of the report before adverse action is taken
- receive an FCRA rights summary
- dispute inaccurate information
- receive a final adverse action notice
State and local laws may provide additional protections.
Common Background Check Errors That Can Lead to Job Denials
Background reports may contain errors such as: outdated, incomplete, or mismatched information - leading to job denials.
Mixed Files
A mixed file combines information belonging to different people. This may happen when two people have similar names or identifying information.
Incorrect Criminal Records
A report may identify the wrong person, charge, or case result. It may also omit information showing that charges were dismissed.
Expunged or Sealed Records
A report may include a record that was expunged or sealed. Whether it can be reported or considered depends on applicable law.
Identity Theft and Fraud-Related Issues
Identity theft may cause fraudulent accounts, addresses, or records to appear under an applicant’s name.
Outdated Information
Some negative information is subject to reporting limits. Reports may also omit updated outcomes or other important context.
Signs a Background Check May Have Wrongfully Cost You a Job
Possible warning signs include:
- an offer is withdrawn after screening
- the employer mentions unfamiliar information
- the report contains another person’s records
- you receive an adverse action notice
- you cannot review the report before rejection
A job denial alone does not prove an FCRA violation. But mishandled or inaccurate reports, notices, and timing can be violations.
What to Do If You Were Denied Employment Because of a Background Check
Act promptly to identify and dispute possible errors.
Request Your Consumer Report
Ask which reporting company provided the report. Its contact information should appear in the adverse action notice.
Review the Information for Errors
Check names, addresses, criminal records, employment history, and case results. Compare questionable information with reliable records.
Dispute Inaccuracies
Identify each error in writing and provide supporting documents. Disputes may be sent to the reporting company and the source that provided the information.
Document Communications
Save reports, notices, letters, emails, and delivery records. Keep notes from telephone calls and employer communications.
Can You Sue for an Inaccurate Employment Background Check?
Yes. You may have a claim and be able to sue for an inaccurate background check report if an employer or reporting company violated the FCRA and caused harm. Violations may include failing to provide notices, reporting inaccurate information, or failing to reasonably investigate a dispute. Available damages depend on the violation and resulting harm. An inaccurate report does not automatically guarantee a successful lawsuit.
When a Job Denial May Also Involve Employment Discrimination
Background check practices must comply with employment discrimination laws.
Protected Characteristics and Hiring Decisions
Employers cannot treat applicants differently because of protected characteristics. These may include race, color, religion, sex, national origin, disability, genetic information, or age.
Why Background Check Laws and Employment Laws Sometimes Overlap
The same hiring decision can involve both laws. Background-check laws regulate how records are used, while employment laws prohibit using them in a discriminatory way.
When to Contact a Consumer Reporting Attorney
Consider legal help when a background check report contains errors, required notices weren’t provided, your FCRA dispute has beend ignored or mishandle, or the denial based on the inaccurarte report caused you harm. An attorney will review the report, notices, dispute history, and filing deadlines and offer personalized legal guidance.
Frequently Asked Questions
Can an employer refuse to tell me why I wasn’t hired?
Often, yes. However, unlawful discrimination is prohibited and FCRA notices are required when a background check report influences the hiring decision.
How do I know if a background check cost me a job?
You may receive pre-adverse and final adverse action notices. You can also ask whether an employment background check influenced the decision.
Does an employer have to give me a copy of my background check?
Generally, yes. The employer must provide a copy before taking adverse action based on the report.
What should I do if my background report contains errors?
Gather supporting records and dispute each error with the reporting company. Keep copies of all communications. Mail your dispute by certified mail to retain control over the tracking and preserve all of your legal rights.
Can I recover damages for a wrongful job denial?
Possibly. Recovery depends on the legal violation, the responsible party’s conduct, and the harm caused.