Bchex | News and Insights

What Does a Failed Background Check Look Like?

Written by Emma White | Feb 5, 2026 4:16:40 PM

Many applicants worry about “failing” a background check, but the reality is more nuanced than a simple pass or fail. Background checks provide information - not decisions. What matters is how that information is reviewed, interpreted, and applied to a specific role. This guide explains what a failed background check looks like, common red flags, and how organizations should handle results compliantly.

 

What Does It Mean to “Fail” a Background Check?

A failed background check occurs when the results of a screening do not meet an organization’s predefined criteria for a role, position, or level of access.

Importantly:

  • Background check providers do not pass or fail candidates
  • Employers, schools, and organizations make the final decision
  • Decisions must be job-related, consistent, and compliant

A failed background check usually results in:

  • A withdrawn job offer
  • Denied volunteer approval
  • Restricted duties or reassignment
  • Termination (in some post-hire cases)

These decisions must follow Fair Credit Reporting Act (FCRA) requirements.

 

Why “Failure” Looks Different for Every Organization

1. Different Roles Have Different Risk Levels

A criminal offense that disqualifies a school volunteer may not disqualify a warehouse employee.

2. Industry Matters

Schools, childcare centers, healthcare, and financial services apply stricter screening standards than many other industries.

3. State and Local Laws Apply

Some offenses are legally disqualifying in certain states, especially for roles involving children.

4. Time and Context Matter

Most organizations consider how recent an offense is and whether it relates to the role.

 

Common Reasons a Background Check Is Considered “Failed”

1. Disqualifying Criminal Convictions

Examples may include:

  • Violent felonies
  • Sexual offenses
  • Crimes involving children
  • Serious financial crimes (for finance roles)

Criminal justice overview: https://www.ojp.gov/

 

2. Sex Offender Registry Matches

Many schools and youth-serving organizations automatically disqualify individuals listed on sex offender registries.
National registry reference: https://www.nsopw.gov

 

3. Identity Verification Issues

A background check may raise concerns if:

  • SSN does not match identity records
  • Names or dates of birth are inconsistent
  • Identity cannot be verified

These issues often require clarification before a decision is made.

 

4. Falsified or Misrepresented Information

Common examples include:

  • Fake employment history
  • Inflated job titles
  • Incorrect education claims

 

5. License or Certification Problems

For regulated roles, a background check may reveal:

  • Expired licenses
  • Suspended credentials
  • Misrepresentation of qualifications

6. Driving Record Issues (When Relevant)

For driving roles, disqualifiers may include:

  • DUI convictions
  • Reckless driving
  • Suspended licenses

 

How Organizations Should Review Background Check Results

Step 1: Confirm Accuracy

Ensure the record belongs to the correct individual.
Court record reliability reference: https://www.ncsc.org

Step 2: Evaluate Job Relevance

Ask whether the offense directly relates to job duties.

Step 3: Consider Time Passed

Older offenses may carry less weight than recent ones.

Step 4: Apply Consistent Criteria

Decisions must be consistent across all applicants.

EEOC fair hiring guidance: https://www.eeoc.gov/eeoc-guidance

 

What Happens After a Failed Background Check? (Adverse Action)

If an organization decides not to move forward based on a background check, it must follow the adverse action process.

This includes:

  1. Sending a pre-adverse action notice
  2. Providing a copy of the background report
  3. Allowing time for disputes or explanations
  4. Sending a final adverse action notice

Adverse action overview: https://www.choicescreening.com/background-screening-resources/dispute-employer

Skipping these steps is a compliance violation.

 

Benefits of Handling Failed Background Checks Correctly

Organizations that handle failed background checks properly gain:

  • Legal compliance
  • Reduced discrimination risk
  • Fair and transparent hiring
  • Stronger documentation
  • Better applicant experience - even when denied

 

How Bchex Helps Organizations Navigate Failed Background Checks

Bchex supports organizations by providing:

  • Accurate, county-level background checks
  • Clear reporting with context
  • Built-in adverse action workflows
  • Compliance-first screening processes
  • Support for schools, nonprofits, and businesses

Bchex helps ensure decisions are informed, fair, and defensible.

 

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Conclusion

A failed background check doesn’t mean automatic rejection - it means information was found that requires review. When organizations apply consistent criteria and follow adverse action procedures, they protect both their people and their compliance posture.

Need help reviewing background check results fairly and compliantly?
Bchex provides accurate screening and built-in compliance tools to help organizations make confident decisions.

 

FAQs About Failed Background Checks

Q: Does one offense automatically mean failure?
No. Most decisions depend on job relevance, severity, and timing.

Q: Can applicants dispute a failed background check?
Yes. The adverse action process allows disputes and corrections.

Q: Who decides if a background check fails?
The employer or organization—not the screening provider.

Q: Do background checks show all crimes?
Only records available through public sources and legal searches.

Q: Can a background check be wrong?
Yes. That’s why compliance and dispute rights are critical.