What to Do If a Background Check Mistake Costs You a Job

A job offer can be an exciting opportunity—until a background check reveals incorrect or misleading information that costs you the position. Background check errors are more common than many people realize, and they can unfairly damage your professional reputation, employment prospects, and financial stability.

If you’ve lost a job due to a background check mistake, you have rights under the Fair Credit Reporting Act (FCRA). Employers and background check companies must follow strict legal guidelines, and you have the ability to dispute inaccurate information. In this guide, we’ll walk you through what to do if a background check error has impacted your employment.

How Do Background Check Errors Happen?

Background check companies collect data from multiple sources, and mistakes can occur for various reasons, including:

• Mixed Files – Your report may include information from someone with a similar name or Social Security number.
• Outdated or Expunged Records – Old criminal records that should have been removed may still appear.
• Incorrect Criminal Records – You may be mistakenly listed as having a conviction that belongs to someone else.
• Inaccurate Employment or Education History – Incorrect work history, job titles, or missing degrees can misrepresent your qualifications.
• Mistaken Identity Theft Records – If you’ve been a victim of identity theft, fraudulent activity may appear on your background report.

If an employer bases their hiring decision on incorrect information, you have the right to challenge the report and correct the errors.

Step 1: Request a Copy of Your Background Check

Under the FCRA, if an employer denies you a job based on background check results, they must provide:

1. A pre-adverse action notice (before making a final decision)
2. A copy of the background check report
3. A summary of your rights under the FCRA

If the employer has not provided this information, request it immediately. You need to review the report to identify what is incorrect and take action to dispute the mistakes.

Step 2: Identify the Errors and Gather Evidence

Once you have the background report, go through it carefully and look for mistakes, such as:

• Incorrect criminal history
• Inaccurate employment or education details
• Mismatched Social Security numbers or addresses

Gather any supporting documents that prove the errors. This may include:

• Court records showing a case was dismissed or expunged
• Identity verification documents (such as your Social Security card)
• Pay stubs, tax forms, or official letters confirming your employment history
• School transcripts or degree certificates

Step 3: File a Dispute with the Background Check Company

Under the FCRA, you have the right to dispute any inaccurate information in your background check. Background check companies must investigate and correct errors within 30 days.

How to File a Dispute

1. Find the Reporting Company – Employers use third-party agencies for background checks. The name of the company should be listed in your background report.
2. Submit a Dispute – Contact the background check company via phone, email, or mail. Clearly explain the mistake and provide supporting documents.
3. Keep Records – Save copies of all correspondence and any confirmation that the dispute was received.

The background check company must investigate your claim and correct any inaccuracies within 30 days.

Step 4: Notify the Employer of the Dispute

Let the employer know you are disputing the background check results. Provide proof of your dispute and any evidence that supports your claim. Employers may be willing to delay their hiring decision until the error is resolved.

Some companies may reconsider their decision once they realize the mistake wasn’t your fault.

Step 5: Monitor the Outcome and Follow Up

If the background check company corrects the mistake, they must send you a revised copy of your report. You should also notify the employer and request that they reconsider your job application.

If the employer refuses to rehire you or still denies employment, they must provide an adverse action notice explaining the reason for their decision.

Step 6: Take Legal Action If Necessary

If the background check company fails to correct the errors, or if an employer refuses to follow FCRA guidelines, you may have legal grounds to take action. An FCRA lawyer in Chicago can help you:

• File a lawsuit against the background check company for reporting false information
• Hold an employer accountable for failing to follow fair hiring practices
• Seek compensation for lost wages and damages caused by the mistake

Employers and background check agencies are legally required to ensure reports are accurate and up to date. If they fail to do so, you have the right to seek justice.

How to Prevent Background Check Mistakes in the Future

Even if you haven’t been affected by a background check error yet, taking proactive steps can help you avoid issues in the future:

• Request a free background check on yourself – Some background check companies allow individuals to access their reports to verify accuracy.
• Monitor your credit report – Many background checks include credit history. Get your free credit reports annually from AnnualCreditReport.com.
• Expunge or seal criminal records (if applicable) – If you qualify, take legal action to remove past records from public access.
• Use a credit freeze to protect against identity theft – If identity theft is a concern, freezing your credit can prevent fraud from appearing on your report.

Final Thoughts: Protect Your Rights Against Background Check Errors

Losing a job opportunity due to a background check mistake can be devastating, but you don’t have to accept it. The FCRA gives you the right to dispute errors, demand corrections, and seek legal action if necessary.

If you’ve been denied a job because of a background check error, contact an FCRA lawyer to help you fight for your rights and recover from unfair hiring decisions.