Can I run a check without written consent?

No. Under the FCRA you must obtain clear written consent before ordering a consumer report for employment purposes (15 U.S.C. §1681b). Obtain and store that consent before submitting any request.

Is an electronic signature legally valid?

Yes. Electronic signatures that show intent, consent, attribution, and reproducible record meet ESIGN and UETA requirements for most employment authorizations.

What if a candidate disputes a report?

If the candidate disputes information, notify the reporting agency and allow investigation. Follow FCRA procedures for reinvestigation and consider delaying adverse action until resolved.

How long do different checks typically take?

National database checks are often immediate; county criminal searches and employment verifications can take several days to two weeks depending on jurisdictions and response times.

Do I need a separate HIPAA authorization?

If the screening collects protected health information, obtain a HIPAA‑compliant authorization and execute a BAA with vendors as appropriate to protect PHI.

How long must I keep consent and reports?

Retain signed consent and reports per company policy and applicable law; I-9s and certain tax or industry records have specific federal minima that must be observed.

Electronic Signature
Templates
Miscellaneous
Employment Background Checks

Employment Background Checks

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

EMPLOYMENT BACKGROUND CHECKS AGREEMENT

RECITALS

WHEREAS, Client Name: (the "Client") desires to obtain employment background screening services for its workforce and applicants;

WHEREAS, Background Screening Provider Name: (the "Provider") is in the business of supplying consumer background reports and related verification services and represents that it will perform such services in accordance with applicable federal and state laws;

NOW, THEREFORE, in consideration of the mutual promises set forth herein, the parties agree as follows:

PARTIES AND CONTACTS

Client Name: Client Address: Provider Name: Provider Address:

SCOPE OF WORK

Provider shall perform employment background screening services as set forth in this Agreement and as requested by Client in writing. Services include collection, verification and reporting of applicant and employee information, and delivery of reports to Client in a secure manner.

Detailed Scope (describe services, deliverables, and any exclusions):

SERVICES (SELECT ALL THAT APPLY)

Criminal history search Employment verification Education verification Motor vehicle record check Drug testing coordination Credit report (where permitted by law) Professional license verification

PAYMENT TERMS

Client shall pay Provider for services performed according to the schedule and rates set forth below. Fees are exclusive of taxes and governmental assessments which shall be paid by Client where applicable.

Agreement Fee / Project Estimate (total): Billing Schedule: Late Fee:

Invoices unpaid after the agreed payment terms shall accrue the stated late fee and Provider may suspend services after providing written notice in accordance with the Notices section below.

TERM AND TERMINATION

This Agreement shall commence on Start Date: and shall continue until End Date: unless earlier terminated pursuant to this section.

Either party may terminate this Agreement for convenience upon Notice Period (days): days written notice to the other party. Either party may terminate for material breach if the breach is not cured within thirty (30) days after written notice of such breach.

CONFIDENTIALITY

Each party agrees to maintain the confidentiality of the other party's Confidential Information and to use such information solely to perform its obligations under this Agreement. "Confidential Information" includes non-public business, technical, personnel and applicant data, including consumer reports and personally identifiable information. Provider shall not disclose Confidential Information except to its employees, contractors or subcontractors who have a need to know and who are bound by confidentiality obligations at least as protective as those herein.

COMPLIANCE, AUTHORIZATION AND DATA HANDLING

Provider shall comply with all applicable federal, state and local laws governing consumer reporting and data privacy, including but not limited to the Fair Credit Reporting Act where applicable. Provider shall obtain required applicant or employee authorizations prior to procuring consumer reports and shall maintain records of such authorizations as required by law.

Provider shall implement reasonable administrative, physical and technical safeguards to protect Confidential Information from unauthorized access, use, alteration or disclosure. Provider agrees to notify Client promptly upon discovery of any unauthorized access to or disclosure of Confidential Information and to cooperate in any remediation required by law or reasonably requested by Client.

INDEMNIFICATION AND LIMITATION OF LIABILITY

Each party shall indemnify and hold harmless the other from claims resulting from its gross negligence, willful misconduct or material breach of this Agreement. Provider's liability for damages arising out of this Agreement shall be limited to direct damages up to the total fees paid by Client to Provider in the twelve (12) months preceding the claim; in no event shall either party be liable for consequential, incidental, punitive or special damages except for liability arising from willful misconduct or violation of law.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the Governing State: without regard to conflict of law principles.

ENTIRE AGREEMENT

This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof and supersedes all prior agreements, proposals and communications, whether written or oral. Any amendment or modification must be in writing and signed by authorized representatives of both parties.

NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth above or to such other address as either party may designate by written notice to the other. Notices shall be deemed given upon receipt.

ADDITIONAL PROVISIONS

If any provision of this Agreement is held invalid or unenforceable, the remainder of the Agreement shall remain in full force and effect. The parties acknowledge that they have had the opportunity to consult with counsel and that any ambiguity shall not be construed against either party as drafter.

Client:

By:

Date:

Provider:

By:

Date:

Definition and scope of Employment Background Checks

An Employment Background Check is a written authorization and information package that permits an employer or consumer reporting agency to collect and verify a job applicant’s history relevant to hiring decisions. Typical checks include identity verification, criminal records, employment history, education verification, credit history where permitted, and drug testing. Background checks are governed by federal law (notably the Fair Credit Reporting Act) and by state and local rules that can limit which records are considered and how they are used in employment decisions.

Why a formal background check process matters

A standardized Employment Background Check protects employers by confirming qualifications and reducing workplace risk while ensuring compliance with FCRA and state laws.

Typical users and signers of background check authorizations

Employers, HR teams, and third‑party consumer reporting agencies commonly use the Employment Background Check to obtain applicant authorization and required personal data.

Human resources teams and hiring managers who need verified candidate history before final offers.
Third‑party screening vendors who compile criminal, employment, education, and credit reports under FCRA.
Applicants and contractors who must provide consent and identity information for screening.

Some industries (healthcare, finance, education, government) have additional regulatory requirements that change what data may be requested or retained.

Stepwise process to complete and use the background check form

Follow these steps in order to collect authorization, run checks, and document outcomes while maintaining FCRA compliance.

01

Collect Consent: Obtain a signed authorization before ordering any consumer report.
02

Verify Identity: Confirm name, DOB, and SSN to improve search accuracy.
03

Order Reports: Submit requests to certified consumer reporting agencies or screening vendors.
04

Adverse Action: If adverse action follows, provide required notices and pre‑adverse materials per FCRA.

How electronic collection and submission typically flow

Most organizations use a simple digital workflow to collect authorization, transmit data securely, and receive screening results for review.

Upload Form: HR uploads the consent template to the signing platform.
Place Fields: Add name, DOB, SSN, checkboxes, and signature fields.
Send to Signer: Deliver via email link or secure portal for applicant signature.
Retrieve Report: Vendor returns report to employer and stores an audit trail.

Common platform settings for online authorization workflows

Configure these settings when using an eSignature or HR platform to collect consent and route screening orders.

Field	Configuration
Consent Checkbox	Required; include FCRA disclosure link
SSN Field	Masked input; encrypted at rest
Signer Authentication	Email plus SMS code for identity assurance
Audit Trail	Enable IP, timestamp, and action logging

Technical and integration considerations for eCollection

Choose a platform that supports secure fields, audit trails, and vendor integrations to streamline background checks.

Integrations: Connectors for HRIS and applicant tracking systems
Formats: Accepts PDF, DOCX, HTML and exports signed PDF
Authentication: Email, SMS, knowledge‑based authentication

Ensure the platform offers encryption in transit and at rest, role-based access, and configurable retention settings for compliance.

eSignature pricing and feature snapshot relevant to background checks

Compare starting price and key compliance capabilities for common eSignature providers used to collect background check authorizations.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day trial	Trial available	Trial available	Trial available	Trial available
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Real-world examples of background check workflows

Two customer examples show how organizations collect consent, verify identity, and apply results without paper.

Optica Ventures (COO Brian Fitzgibbons)

The interface is simple for internal teams and applicants.

High match rates reduced follow-up requests.
By standardizing consent and using digital signatures, the team cut turnaround and administrative follow-up, improving candidate experience while keeping FCRA disclosures attached to each report.

Martin Properties (Founder Tim Martin)

Handled tenant and applicant screenings entirely online.

Mobile signing kept processes on schedule.
Using secure eSign and audit trails allowed compliance with state disclosure rules and reduced in-person appointments while preserving signed consent records for audits.

Essential components of a professional background check authorization

A compliant authorization form combines clear disclosure language, specific scope, accurate identity fields, and a durable signature record for auditability.

Identity Details

Full legal name, DOB, and SSN (when permitted) to ensure accurate matching across databases and reduce false positives.

Scope of Search

Specify types of checks ordered (criminal, credit, education, employment, drug test) so the applicant understands what will be reviewed.

FCRA Disclosure

Include the clear consumer disclosure and authorization language required by FCRA before ordering a consumer report.

Adverse Action Language

Describe the process and provide contact details for the reporting agency used, enabling required pre‑adverse and final notices.

Retention Statement

State how long reports and personal data will be retained and the legal basis for retention in HR records.

Signature Evidence

Capture signer intent, timestamp, IP, and authentication method to satisfy ESIGN/UETA and internal audit requirements.

Key data elements and platform security points

Full Name: Legal name as on ID

Date of Birth: MM/DD/YYYY format

SSN: Full SSN when required

Consent Record: Signed authorization stored

Encryption: TLS 1.2/1.3 in transit

Data at Rest: AES-256 encryption

Consequences of noncompliance or incorrect forms

FCRA Civil Liability: Statutory and actual damages (15 U.S.C. §1681n)

Willful FCRA Penalty: Potential punitive damages (15 U.S.C. §1681n)

I-9 Paperwork Fines: Penalties per violation (8 CFR §274a.2)

State Penalties: State enforcement and civil fines

Adverse Action Risk: Invalid notices can trigger claims

Data Breach Liability: Breach damages and regulatory fines

Common mistakes to avoid when preparing background check authorizations

Failing to obtain explicit written consent before ordering a consumer report, which violates FCRA and can invalidate the employer’s action.
Using vague scope language that does not specify the types of records to be checked, causing compliance and disclosure gaps with vendors.
Mishandling arrest or conviction records inconsistently across candidates, which may lead to disparate impact discrimination claims under EEOC guidance.
Not preserving a verifiable audit trail (timestamp, IP, authentication) when relying on electronic signatures, weakening evidentiary support.

Electronic signature types: simple e-signature versus cryptographic digital signature

Compare the legal and technical differences so you can choose the right approach for consent collection and high-assurance workflows.

Criteria	Electronic Signature	Digital Signature
Definition	any electronic mark	pki‑based cryptographic seal
Technology	images, clicks, typed names	x.509 certificates, keys
Non-repudiation	audit trail evidence	strong cryptographic proof
Legal Acceptance	accepted under esign/ueta	accepted and preferred for regulated records

Typical timelines and processing expectations for background checks

Turnaround depends on check type, jurisdiction, and vendor capacity; plan recruiting timelines accordingly.

Instant Checks:

Credit and national database matches typically return within minutes

Criminal Databases:

National databases often return hours; county searches 3–14 days

Employment Verification:

Direct employer responses can take 3–10 business days

Adverse Action Notices:

Provide pre‑adverse materials and allow a reasonable review period before final action

Record Retention:

Retain consent and result per company policy and legal requirements

Practical tips for accurate and efficient background screening

Adopt consistent procedures, clear disclosures, and secure storage to minimize risk and accelerate hiring.

Standardize Consent Forms

Use a single, legally reviewed form that clearly defines scope, includes required FCRA disclosures, and uses plain language so applicants understand data being requested.

Verify Identity First

Confirm name, DOB, and SSN before ordering checks to reduce mismatches; include instructions to correct obvious errors promptly to avoid false negatives.

Use Integrated Workflows

Connect eSignature, ATS, and screening vendors so signed authorizations flow directly to providers, eliminating manual re-keying and audit gaps.

Document Adverse Actions

Keep copies of pre‑adverse disclosures, vendor reports, and the final notice sent to the candidate to support compliance and defend decisions.

Frequently asked questions about Employment Background Checks

Answers to common compliance and operational questions employers and applicants raise when using background check authorizations.

Need help? Contact support

Can I run a check without written consent?
No. Under the FCRA you must obtain clear written consent before ordering a consumer report for employment purposes (15 U.S.C. §1681b). Obtain and store that consent before submitting any request.
Is an electronic signature legally valid?
Yes. Electronic signatures that show intent, consent, attribution, and reproducible record meet ESIGN and UETA requirements for most employment authorizations.
What if a candidate disputes a report?
If the candidate disputes information, notify the reporting agency and allow investigation. Follow FCRA procedures for reinvestigation and consider delaying adverse action until resolved.
How long do different checks typically take?
National database checks are often immediate; county criminal searches and employment verifications can take several days to two weeks depending on jurisdictions and response times.
Do I need a separate HIPAA authorization?
If the screening collects protected health information, obtain a HIPAA‑compliant authorization and execute a BAA with vendors as appropriate to protect PHI.
How long must I keep consent and reports?
Retain signed consent and reports per company policy and applicable law; I-9s and certain tax or industry records have specific federal minima that must be observed.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now