Background Check Laws for Household Employers

Running a background check on a nanny candidate is not just good practice — it is essential when you are entrusting someone with your children's safety. But the process involves more legal requirements than most parents realize. The Fair Credit Reporting Act (FCRA) governs how employers use third-party background screening, and state laws add additional protections for candidates.

This guide covers what you can legally screen, the consent and disclosure requirements you must follow, and how to handle adverse findings properly.

What Is the FCRA and How Does It Apply?

The Fair Credit Reporting Act (FCRA) is a federal law that regulates how consumer reports — including criminal background checks, credit reports, and driving records — are obtained and used for employment purposes. If you use a third-party screening company to run a background check on a nanny candidate, the FCRA applies to you as a household employer.

Key FCRA requirements include:

1. Written disclosure: Before ordering the check, provide the candidate a clear, standalone written notice that you intend to obtain a consumer report.
2. Written authorization: The candidate must sign a written consent form authorizing you to run the check.
3. Adverse action process: If you decide not to hire based on the report, follow the two-step adverse action process (detailed below).

What a Nanny Background Check Includes

A comprehensive nanny background check package typically costs $50 to $150 and takes 3 to 7 business days to complete. Beverly includes thorough background screening as part of our vetting process.

State Laws That Affect Background Checks

Ban-the-Box Laws

Several states and cities have "ban-the-box" laws that restrict when an employer can ask about criminal history. While many of these laws apply only to employers above a certain size, some (like California and New York City) apply to all employers including household employers. In these jurisdictions, you generally cannot ask about criminal history on an application — only after a conditional offer of employment.

Seven-Year Lookback Limits

Some states limit how far back a background check can go. California, New York, Texas, and several other states prohibit reporting criminal convictions older than seven years for employment purposes. Federal law does not impose a lookback limit, so the state where the candidate lives or will work determines the timeframe.

Salary History Bans

While not directly related to background checks, many states prohibit asking about a candidate's salary history. This affects your hiring process and should be factored into your screening procedures.

The Adverse Action Process

If you decide not to hire a candidate based on background check results, you must follow this two-step process:

1. Pre-adverse action notice: Send the candidate a copy of the background check report, a copy of "A Summary of Your Rights Under the FCRA" (provided by the screening company), and a written notice that you are considering not hiring them based on the report.
2. Waiting period: Give the candidate a reasonable time (at least 5 business days) to review the report and dispute any inaccuracies.
3. Final adverse action notice: If you proceed with the decision, send a final notice that includes the screening company's name and contact information, a statement that the screening company did not make the hiring decision, and notice of the candidate's right to dispute the report and obtain a free copy.

Skipping the adverse action process can expose you to FCRA lawsuits with statutory damages of $100 to $1,000 per violation plus attorney's fees.

A background check should be one part of a comprehensive hiring and onboarding process. Pair it with thorough reference checks, in-person interviews, and a trial period to build confidence in your hiring decision.