Background Checks in Agency Placements: What Recruiters Should Know

In most agency placements, the client runs the background check, usually after a contingent offer and through a background-check company. The recruiter's job is to set expectations early: find out what the client checks and when, ask candidates whether anything will come up, and keep everyone on schedule. Rules vary by state and country, so the client's HR team or employment counsel should own the legal side.

Who usually runs the background check?

The client. The employer decides what to check, chooses the background-check company, collects the candidate's authorization and makes the hiring decision. Some recruiting firms run checks for clients, but that adds legal responsibilities, so only do it with advice from employment counsel and a clear agreement with the client.

What do clients typically check?

• Employment history and dates
• Education and professional licenses or certifications
• Criminal records, where permitted
• Driving records for roles that involve driving
• Credit history for some finance roles, where permitted
• Drug screening for some roles and industries

Ask about all of this on the intake call, not after the offer. A check you didn't know about is a delay you can't plan for.

What rules should recruiters know about?

In the US, the Fair Credit Reporting Act (FCRA) applies when an employer uses a background-check company. The employer needs the candidate's written authorization before ordering the report. If the employer may decide not to hire based on the report, it must follow pre-adverse and adverse action notice steps, which include giving the candidate a copy of the report and a summary of their rights before the decision is final. Many states and cities add their own rules about criminal history, credit checks and timing, and other countries have different rules again.

This is general information, not legal advice. Encourage clients to check their process with employment counsel, and don't advise candidates on legal questions yourself.

When should the check happen?

Most clients run checks after a contingent offer is accepted, and in many places criminal history questions must wait until after a conditional offer. Find out how long the client's checks usually take and build that time into the start date. Advise the candidate not to resign until the check has cleared, unless the client and candidate agree otherwise in writing.

How do you prepare candidates?

1. Ask early. "The client runs a background check after the offer. Is there anything in your record, education or work history that might come up?"
2. Check the resume. Dates, titles and degrees should match what a check will find. Fix small mismatches before the client sees them.
3. Explain the process. Tell the candidate who will contact them, what they'll be asked to sign and how long it usually takes.
4. Encourage honesty. Many employers handle a disclosed issue far better than a surprise.

What if something comes up?

Stay neutral and keep communication open. The decision and the required notices belong to the client. Your role is to make sure the candidate understands the timeline and can respond through the client's process. In identifyd, keep the candidate at Offered on the job order until the check clears, and log each conversation so you always know where things stand.