DocketX / Fired, laid off, unpaid / Denied a Job Over a Background Check

Denied a Job Over a Background Check

You applied for a job or were working, and then you were told you didn't get the job or were let go because of something in a background check. Maybe you were never told what was in the report, or never got a copy, or you know the report contains an error. It can feel unfair and confusing, especially if you don't know what rights you have. There is a real, ordered set of options you can explore to address this situation.

The honest reality

Not every negative outcome from a background check is illegal. The law only steps in when the employer failed to follow specific procedures, such as not giving you a required notice or a copy of the report before taking action, or when the report contains inaccurate information that you were not given a chance to correct. If the employer followed the rules and the report was accurate, the decision may be legal even if it feels wrong.

Your real options, cheapest first

1. Free: complain to the Consumer Financial Protection Bureau. Background check companies used for employment are regulated as consumer reporting agencies, and this is where you complain about an inaccurate report or a skipped disclosure step. Start here.
2. Free: complain to the EEOC. If the background check policy itself is applied in a way that disproportionately screens out a protected group without real job relevance, that can separately be discrimination. Start here.
3. A written request or demand first. Request a free copy of the report from the background check company in writing and dispute any inaccurate items directly with them; employers are generally required to give you a real chance to respond before finalizing a denial based on the report.
4. Small claims court, where the amount is calculable. A dispute over a specific inaccurate item on a report can sometimes be resolved directly with the reporting company without any court involvement at all.
5. A lawsuit or full agency case. If an employer skipped the required disclosure and consent steps entirely, or ignored your dispute, that can become a case for an employment or consumer-rights lawyer.

A warning on deadlines: every agency in the options above runs on its own filing deadline, and those deadlines are short and vary by agency, by claim, and by state. Do not estimate one from anything you read here, go to the agency's own page linked above and check its current deadline immediately, before you do anything else.

You don't need a lawyer to start

You are allowed to do this yourself

A regulator complaint, and for pay disputes small claims court, are both built for people without lawyers. Read our pro se guide for how self-representation actually works, our what happened at work triage tool if you are not even sure what category this falls into, and if a lawyer's cost is the blocker at any stage, our can't-afford-a-lawyer triage covers every free and low-cost path, including legal aid.

Questions

Can I sue my employer for not telling me about the background check results?

If the employer took an adverse action based on a background check, they are generally required to give you a pre-adverse action notice and a copy of the report, then wait before making a final decision. If they did not do that, you may have a legal claim. The specific requirements depend on the laws that apply to your situation.

What if the background check has an error that caused me to lose the job?

If the background check contains a mistake, you have the right to dispute it with the company that provided the report. If the employer did not give you a chance to correct the error before making their decision, that could be a violation. You can contact the reporting company and the relevant government agency to start the correction process.

How do I know if my employer followed the law?

The law requires employers to follow a specific process when using background checks: get your written permission first, provide a copy of the report and a summary of your rights before taking adverse action, and then give you a final notice after the decision. If any step was skipped or handled incorrectly, you may have a claim. Check the rules that apply to your state and the type of job.

Not legal advice and not a law firm. We don't predict outcomes, and deadlines and dollar thresholds vary by state and by claim, check your state's page before you rely on any number. If you can get a lawyer or free legal aid, do: start at lsc.gov.