Background Check Glossary

Adverse Action

A decision by an employer, landlord, or other entity to deny employment, housing, or credit based wholly or partially on information in a background check. Under FCRA, adverse action requires a specific process: pre-adverse action notice, waiting period, and final adverse action notice with required disclosures.

Related: Pre-Adverse Action, FCRA

Alias

An alternate name used by an individual, including maiden names, nicknames, and legally changed names. Background checks typically search all known aliases to ensure comprehensive results.

ATS (Applicant Tracking System)

Software used by employers to manage job applications and hiring workflows. Many ATS platforms integrate with background check providers to streamline the screening process.

Authorization

Written consent from an individual allowing an employer or landlord to conduct a background check. Under FCRA, authorization must be obtained before running a consumer report for employment purposes.

Background Check

A process of reviewing public and private records to verify an individual’s identity, history, and qualifications. Common components include criminal records, employment history, education, credit, and identity verification.

Ban-the-Box

Laws that prohibit employers from asking about criminal history on job applications. These laws require employers to delay criminal background inquiries until later in the hiring process, typically after an interview or conditional offer.

Bankruptcy

A legal proceeding where an individual or business seeks relief from debts. Bankruptcy records may appear on credit reports and background checks for up to 10 years.

Consumer Report

Under FCRA, any communication by a Consumer Reporting Agency (CRA) bearing on a consumer’s creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. Background checks are considered consumer reports.

Consumer Reporting Agency (CRA)

An organization that collects and provides consumer information for background checks and credit reports. CRAs must comply with FCRA requirements. Also known as a Background Screening Company or Background Check Provider.

Consent Form

Written authorization required before conducting a background check on a candidate or tenant. Must be provided as a standalone document separate from the application under FCRA.

Conviction

A formal finding of guilt in a criminal case, either through a guilty plea, no-contest plea, or trial verdict. Convictions are distinct from arrests and generally carry more weight in employment decisions.

County Criminal Search

A search of criminal records at the county courthouse level. Often considered the most thorough criminal search because it accesses primary court records directly.

Credit Report

A record of a person’s credit history, including loans, credit cards, payment history, and current debt. Used in tenant screening and some employment decisions (with restrictions in many states).

Criminal History

Records of arrests, charges, convictions, and incarcerations across various jurisdictions. Criminal history can be searched at county, state, federal, and national levels.

Disclosure

Under FCRA, a clear and conspicuous written notice to the consumer that a background check may be obtained. The disclosure must be in a standalone document — it cannot be buried in an employment application.

Disparate Impact

An employment practice that appears neutral but disproportionately affects a protected class. Under EEOC guidance, blanket criminal record exclusions may create disparate impact and potential discrimination claims.

DOT (Department of Transportation)

Federal agency that regulates transportation industries including trucking, aviation, and transit. DOT mandates specific drug testing and driver qualification requirements for safety-sensitive positions.

Drug Testing

Analysis of biological specimens (urine, hair, saliva, or blood) to detect the presence of drugs or alcohol. May be required pre-employment, randomly, post-accident, or for reasonable suspicion.

Education Verification

Confirmation of academic credentials including degrees earned, dates of attendance, and graduation status. Verifies claims made by candidates about their educational background.

EEOC (Equal Employment Opportunity Commission)

Federal agency that enforces laws prohibiting employment discrimination. EEOC guidance recommends individualized assessment when using criminal records in employment decisions.

Employment Verification

Confirmation of an individual’s work history including employer names, job titles, dates of employment, and sometimes salary information. Verifies claims made on resumes and applications.

Eviction History

Records of previous eviction proceedings against a tenant, regardless of outcome. Important for landlords conducting tenant screening.

Expungement

Legal process of sealing or destroying criminal records, making them invisible to most background checks. Expungement rules vary significantly by state and offense type.

Fair Chance Hiring

Policies and practices that give people with criminal records a fair opportunity for employment. Includes ban-the-box laws, individualized assessment, and removing barriers to employment.

False Positive

When a background check incorrectly associates criminal or other negative records with the wrong person, usually due to similar names or data entry errors.

FCRA (Fair Credit Reporting Act)

Federal law (15 U.S.C. § 1681) governing how consumer information can be collected, shared, and used. FCRA regulates background checks for employment, tenant screening, and credit purposes. Key requirements include disclosure, authorization, adverse action procedures, and dispute rights.

Learn more: FCRA Compliance Guide

Federal Criminal Search

A search of federal court records for crimes prosecuted under federal law, such as tax evasion, immigration violations, bank robbery, drug trafficking, and interstate crimes.

Felony

A serious criminal offense typically punishable by more than one year in prison. Felonies include violent crimes, serious drug offenses, and major theft. Contrast with misdemeanor.

GDPR (General Data Protection Regulation)

European Union regulation governing data privacy and protection. Affects background screening for EU candidates and organizations operating in the EU. Requires explicit consent, data minimization, and the right to erasure.

Global Watchlist

Databases of individuals sanctioned, wanted, or of interest to government agencies worldwide. Includes OFAC SDN list, Interpol, FBI, and international sanctions lists.

Hit

A potential match found during a background check that requires further review. A “hit” doesn’t necessarily mean a confirmed record — it may need verification to confirm it belongs to the subject.

HRIS (Human Resource Information System)

Software for managing HR functions including employee records, payroll, and benefits. Some HRIS platforms integrate with background check providers for ongoing monitoring.

Identity Verification

Confirming that a person’s claimed identity matches official records and documents. Methods include SSN verification, document verification, knowledge-based authentication, and biometric verification.

Individualized Assessment

EEOC-recommended practice of evaluating criminal records on a case-by-case basis, considering factors like the nature of the offense, time elapsed, and relevance to the job. Required in many jurisdictions before adverse action.

Infraction

A minor violation that typically results in a fine rather than jail time, such as traffic tickets or minor ordinance violations. Usually not reported on background checks.

Judgment

A court’s final decision in a civil case. Civil judgments like unpaid debts, lawsuits, or liens may appear on background checks and credit reports.

KYC (Know Your Customer)

Identity verification requirements in financial services to prevent fraud, money laundering, and terrorist financing. Background checks are part of KYC compliance for many financial institutions.

Lien

A legal claim against property as security for a debt, such as tax liens or mechanic’s liens. Liens may appear on credit reports and background checks.

License Verification

Confirmation that a professional license (medical, legal, real estate, etc.) is valid, current, and in good standing. Important for regulated industries.

Misdemeanor

A criminal offense less serious than a felony, typically punishable by up to one year in jail and/or fines. Examples include petty theft, simple assault, and first-offense DUI.

MVR (Motor Vehicle Record)

A record of an individual’s driving history including license status, violations, accidents, DUIs, and suspensions. Essential for positions involving driving.

National Criminal Database

A compiled database of criminal records from multiple sources across the country. Useful as an initial screen but should be supplemented with county court searches for thoroughness.

National Sex Offender Registry

A database maintained by the Department of Justice containing information on registered sex offenders across all 50 states, U.S. territories, and tribal lands.

Negligent Hiring

Legal liability when an employer hires someone who causes harm and the employer knew or should have known of the risk. Background checks help demonstrate due diligence.

OFAC (Office of Foreign Assets Control)

U.S. Treasury Department agency that maintains sanctions lists including the Specially Designated Nationals (SDN) list. OFAC screening is required in many industries.

OIG (Office of Inspector General)

Agency that maintains exclusion lists of individuals prohibited from participating in federal healthcare programs. OIG exclusion checks are mandatory for healthcare employers.

Ongoing Monitoring / Continuous Monitoring

Post-hire screening that continuously or periodically checks employee records for new criminal activity, license changes, or other relevant events.

PBSA (Professional Background Screening Association)

Industry association for background screening companies. PBSA sets standards and best practices for the screening industry.

Permissible Purpose

Under FCRA, a legally valid reason to obtain a consumer report. For employment screening, the permissible purpose is evaluating a candidate for employment, promotion, reassignment, or retention.

Pre-Adverse Action

The first step in the adverse action process. Before making a final negative decision, employers must provide the candidate with a copy of their report, a summary of rights, and a reasonable time to respond.

Pre-Employment Screening

Background checks conducted before hiring to verify candidate information and assess potential risks. The most common time to conduct background screening.

Reference Check

Contacting previous employers, colleagues, or personal references to gather information about a candidate’s work performance, character, and reliability.

Reinvestigation

A subsequent background check conducted after initial employment, typically at regular intervals or when an employee is promoted or changes roles.

Sealed Records

Criminal records that have been closed to public access by court order. Sealed records generally should not appear on background checks, though rules vary by state.

7-Year Rule

FCRA provision limiting reporting of most adverse information (arrests, civil suits, tax liens) to seven years. Some states have additional restrictions. Note: Convictions can generally be reported indefinitely in most states.

SOC 2 (Service Organization Control 2)

Security framework and audit standard for service providers. SOC 2 Type II certification demonstrates that a background check provider has proper security controls.

SSN Trace / SSN Verification

A search using Social Security Number to identify address history and aliases. Helps determine which counties to search for criminal records and verify identity.

Summary of Rights

CFPB document that must be provided to consumers explaining their rights under FCRA, including the right to dispute inaccurate information.

Tenant Screening

The process of checking a rental applicant’s background, including credit, eviction, and criminal records. Helps landlords evaluate prospective tenants.

Turnaround Time (TAT)

The time from when a background check is ordered to when results are delivered. TAT varies by search type — instant database searches take minutes while court searches may take days.

Undeliverable

A verification request that could not be completed, often because the institution could not be reached or declined to provide information.

Verification

Confirming the accuracy of claimed information, such as employment, education, or address history. Verifications contact original sources to validate candidate claims.

Watchlist

A database of individuals of interest for security, regulatory, or criminal reasons. Common watchlists include OFAC SDN, OIG exclusion, sex offender registries, and international sanctions lists.

Webhook

An automated message sent from a background check system to another application when an event occurs, such as when a background check is complete. Used for real-time integration.