Complete Guide to Federal Background Checks | Checkr (2024)

Running a federal background check can help employers make more informed hiring decisions, promote safety, and reduce legal risk. This guide to federal background checks covers how federal background checks work, what type of information shows up, and what compliance regulations may apply.

A federal background check for employment—also known as a federal criminal background check—is a type of criminal record screening that searches federal criminal history records across the 94 United States federal district courts through the Public Access to Court Electronic Records (PACER) database.

In some cases, federal background checks may be required by law, depending on the nature of the role or industry. Employers often perform federal background checks as part of a comprehensive criminal background check to look into an individual’s criminal history at the national, state, and county level.

A federal criminal background check is not the same as a Federal Bureau of Investigation (FBI) background check.

A federal background check is a search of federal criminal history in the federal district courts. It may be conducted as part of the pre-employment screening process to help employers learn about a candidate’s criminal history at the federal level.

An FBI background check, on the other hand, is a type of search conducted by authorized agencies and industries to access information from the FBI's National Crime Information Center (NCIC) database, which includes a history of arrests and convictions, as well as any contact with law enforcement. It is usually conducted through positive identification, such as fingerprinting. These searches are often conducted to determine if a candidate is eligible for security clearance or access to sensitive government information.

The federal employment background check process is conducted using the PACER database. PACER provides public access to more than one billion documents in federal courts. When conducting federal background checks, the results may include federal felony and misdemeanor convictions across all federal district courts.

A federal background check consists of searching the PACER database for federal convictions—both felony and misdemeanor. Federal offenses shown during a federal criminal background check may include criminal offenses, such as:

• Fraud
• Embezzlement
• Bank robberies
• Counterfeiting
• Drug trafficking
• Kidnapping

It may also report federal convictions of crimes against federal employees, crimes committed on federal land, crimes across state lines, and other crimes that fall outside of state and local jurisdictions. (Some of these crimes may also be tried in state or local jurisdictions.)

There are often federal background check requirements for government jobs which may include additional screenings, such as an FBI background check, identity history summary, and reference checks.

Conducting a federal background check for employment can help hiring managers determine a candidate’s qualifications and eligibility for employment. Federal background check disqualifiers depend on the employer’s background check policy and any applicable compliance regulations that determine background check requirements for specific industries or roles.

For example, a federal criminal background check is frequently used by companies in financial industries, as well as for executives and CPAs, to surface incidents involving fraud and embezzlement or identity theft which may be disqualifying offenses. However, other records may instead only be subject to evaluation during the hiring process.

How long a federal background check takes depends if you search on your own or work with a background check provider. Employers that choose to conduct federal criminal background checks in-house must register to use the PACER database and search court records manually, which can be a tedious process.

Employers that partner with a CRA, like Checkr, to conduct federal background checks often experience quicker turnaround times and more accurate reporting. With Checkr, federal criminal record searches that return no records complete within minutes. Searches that find records may take two to three days to complete.

Employers can conduct federal background checks online through the publicly available PACER online database. After registering for an account, employers have the option to work with the PACER Service Center or use the online database to search federal court records where the case was filed or use the nationwide index of federal court cases.

Federal background checks can also be conducted through PACER with the help of a CRA, like Checkr. When performing federal criminal background checks, Checkr’s initial PACER search is conducted only in the states relevant to your candidate’s address history and does not require a candidate’s exact name, which ensures a comprehensive range of returned records. If PACER returns at least one potential match, court researchers complete the federal background check search by reviewing the record at the federal courthouse. Partnering with Checkr can help employers ensure accuracy in reporting, create a more streamlined process, and faster turnaround times.

Lookback periods on federal background checks for employment vary depending on who is conducting the search and any applicable laws.

Federal criminal background checks conducted through a CRA must comply with the Fair Credit Reporting Act (ACT). The FCRA restricts non-conviction information—which includes arrests, civil judgments, tax liens, and most credit report information—reported by a CRA to a seven-year lookback period. It excludes bankruptcies, which may be reported for up to ten years, and criminal convictions, which may be reported indefinitely. If a candidate’s expected salary is $75,000 or higher or if searches are conducted by the employer themselves, these limitations may not apply.

Federal background checks conducted by the FBI for the purposes of determining employment eligibility with the federal government are generally more thorough and delve further into a candidate’s past. There is no defined limit on how far back the investigation can extend, as investigators have the authority to gather any information relevant to determining a candidate’s suitability.

Federal background checks costs depend on who is conducting the search, the number of reports needed, and the frequency of checks needed. Employers that conduct federal background checks through the PACER database will be charged fees to access various types of electronic and printed records, including case reports, transcripts, and audio files.

Costs range from $0.10 per page (up to 30 pages) to $2.40 per audio file. When employers use the PACER Service Center to conduct a federal background check, the fee is $30 per name, plus $0.50 per page for electronic and printed record copies.

Federal background checks are often part of more comprehensive pre-employment checks, which may include additional criminal background checks, driving record checks, and more. When conducting background checks in-house, employers also need to consider the cost of having staff source, review, and follow-up on reports. Manually ordering reports while juggling other HR responsibilities can increase operating costs and lower ROI as a result.

Employers that choose to partner with a qualified background check provider often benefit from lower overhead costs and a reduced administrative burden, along with pricing that includes multiple screening types. For example, Checkr offers customizable packages with the option to add a federal background check for $10 per report.

Employers that choose to conduct federal criminal background checks must remain in compliance with applicable federal, state, and local fair hiring laws. Hiring managers that are unsure which regulations apply, may want to consult counsel to avoid potential legal liability.

Here’s a closer look at some of the key laws to know:

• The FCRA requires employers that partner with a CRA for background screenings must provide candidates with proper disclosure of your intent to conduct a pre-employment background check, receive written consent from the candidate, and follow the adverse action process should you decide not to hire the candidate as a result of information reported on a background check.
• The Equal Employee Opportunity Commission (EEOC) provides guidance for making hiring decisions based on criminal history. It recommends considering the nature of the offense, when it took place, and its relevance to the job in question to mitigate potential discrimination against protected classes.
• Ban the Box laws, which can vary by state, county, and city, may also apply. These laws impact when employers may inquire about criminal history or conduct a background check during the hiring process.

Employers that choose to conduct pre-employment federal criminal background checks may want to consider these commonly asked questions.

A federal background check may be required for roles that involve public safety, working with vulnerable adults or children, or financial matters. In many states, federal background checks are part of the hiring process for law enforcement; teachers and educators administrators; finance executives and certified public accountants (CPAs); healthcare providers; and childcare workers.

When required for employment, federal background checks are typically performed during the pre-employment screening process. After hiring, employers may choose to rescreen employees every two to five years, although there are generally no federal or state requirements.

A federal criminal background check that reports a misdemeanor, does not automatically disqualify a candidate. Any adverse action will depend on the employer’s background check policy and industry regulations. For example, certain roles like law enforcement may have stricter requirements and a misdemeanor could be a disqualifying offense.

Generally, expunged or sealed records should not show up on a federal background check. But some types of employment, particularly those involving national security, may require disclosure of all interactions with law enforcement, including expunged records.

State background checks search criminal records at the state or county level, including state court records, law enforcement records, and corrections department records. Federal background checks search for federal crimes from all US district courts.

A federal criminal background check can help employers review a candidate's past interactions with the federal court system in order to determine eligibility for a role. Employers often choose to partner with a background check service provider, like Checkr, to streamline the process and conduct additional pre-employment background screenings.

Checkr’s modern platform makes background checks easier and more efficient, while our built-in compliance tools help you manage risk for your business. In addition to federal background checks, Checkr offers multiple screening options with fast turnaround times and accurate, easy-to-read results. Get started with Checkr today.