Employment background checks: cost, providers and the rules

Background check pages

• Background check servicesCheckr and GoodHire scored, with costs for 5, 10 and 25 hires and the fees not in the package price.
• Checkr pricingCheckr packages, add-on prices, pass-through fees and what a year of hiring costs.

Best background check for employers, by score

Checkr leads because it itemizes add-on prices; GoodHire publishes the same three packages but lists third-party fees only as "may apply." GoodHire describes itself as a Checkr company. Scoring rules: how we score providers. We compared published prices and terms; we did not order checks.

Full comparison: background check services and software.

What an employee background check costs

What a background check can include

• Criminal records: county, state and federal court searches. Checkr prices extra county searches at $25 and state or federal searches at $10.
• Driving record (MVR): $9.50 on Checkr, plus state DMV fees passed through.
• Drug tests: $23 to $60 on Checkr, depending on the panel.
• Continuous monitoring: ongoing alerts on current staff, billed per person per month on Checkr.
• International searches: offered by Checkr; price not recorded in our check.

The federal rules: disclosure, consent and adverse action

When you use a screening company, the federal Fair Credit Reporting Act (FCRA) puts duties on you as the employer. The Federal Trade Commission sets them out in its guide for employers, Background Checks: What Employers Need to Know (listed in our sources). At a high level:

1. Before you order: tell the candidate in writing that you will get a background report, and get the candidate's written permission. The FTC tells employers to keep that disclosure simple.
2. Before you reject someone because of the report: give the candidate notice first, so they have a chance to respond to what it says.
3. After you decide: send a final adverse action notice that tells the candidate about their rights.

State and city limits

Many states and cities add their own limits, often called ban-the-box or fair chance hiring laws. They can restrict when you may ask about criminal history (for example, not on the application), which records you may consider, and what extra notices or waiting steps you owe. Some also limit the use of credit reports. We have not yet compiled a sourced state-by-state list, so check your state labor department and any city rules where the job is based before you order a check.

Common background check mistakes

• Burying the background check disclosure in a long application or offer letter. The FTC tells employers to keep the disclosure simple.
• Ordering the report before the candidate signs the authorization.
• Rejecting a candidate because of the report without first giving the notice the FCRA requires.
• Budgeting the package price only. County, court and DMV fees add to it.
• Asking about criminal history earlier than your state or city allows.

Background checks are one step in hiring. The rest of the paperwork is in hiring your first employee and onboarding software, and the HR systems that store the results are compared on the HR software hub. When the new hire is ready to be paid, see how to set up payroll, the best payroll services and what Gusto charges per employee.