Legal Definitions - investigative background check

An investigative background check is a process that an employer may use to gather information about a potential or current employee. This information can include:

• Employment history
• Education
• Criminal record
• Financial history
• Medical history
• Use of online social media

Employers may use this information to make decisions about hiring, promotions, or retention. Background checks can be conducted through background reports, which may include criminal background reports and credit reports. The Federal Fair Credit Reporting Act (FCRA) regulates these reports and the consumer reporting agencies (CRA) that produce them.

For example, if a company is hiring a new employee for a position that involves handling money, they may conduct a background check to ensure that the candidate has a good financial history and no criminal record related to theft or fraud. Similarly, if a company is considering promoting an employee to a management position, they may conduct a background check to verify the candidate's education and employment history.