LEGAL & COMPLIANCE
Greenhouse has earned its place as a leading, data-driven ATS that mid-size and large teams rely on daily. But when it comes to background checks, there is often a lack of clarity about what Greenhouse handles on its own versus what falls to an outside vendor. Above all, many HR teams are unsure about the legal duties they must meet no matter which platform they use.
This guide gives you clear, direct answers about how background checks work within Greenhouse, what to expect on timing and depth, which vendors connect to the platform, and which rules you need to keep in mind at every step. Whether you already run Greenhouse or you are still comparing options, you will walk away knowing exactly where things stand.
Does Greenhouse Do Background Checks?
Greenhouse does not perform background checks on its own. Instead, Greenhouse connects with outside background check vendors (known as consumer reporting agencies, or CRAs) through its add-ons marketplace, allowing you to trigger and manage checks directly from the platform. This is a common setup among modern ATS tools, where the core system handles candidate tracking while outside vendors handle the actual screening.
In practice, you select a background check vendor, connect it to Greenhouse via API, and then start checks from within a candidate's profile. Results then flow back into Greenhouse on their own. As a result, your hiring team can review status updates without switching between tools.
What Must Happen Before You Start a Check
No matter which platform or vendor you use, federal law requires certain steps before any background check can be ordered:
- Written notice on its own: Under the Fair Credit Reporting Act (FCRA §604(b)(2)), you must give the candidate a clear, easy-to-see, written notice, in a document that contains only the notice, stating that a consumer report may be pulled for hiring purposes.
- Written consent: The candidate must provide signed written consent (which may be digital where allowed) before the report is ordered.
- State-level added notices: Several states (including California, New York, Minnesota, Washington, and others) require extra notices beyond the federal FCRA rules. Employers who hire in more than one state should work with their CRA and legal counsel to make sure all local rules are met.
Greenhouse add-ons often help manage the notice-and-consent workflow through the candidate portal. However, it is the employer's duty to confirm that the forms used meet both federal and state rules.
For HR teams, this model offers real freedom. You are not locked into a single vendor, and you can pick a screening partner that fits your field, budget, and legal needs. At the same time, it also means you need to review and select a background check vendor apart from your ATS purchase, and make sure the vendor's tools match your legal duties.
How Long Does a Greenhouse Background Check Take?
The timeline for a background check started through Greenhouse depends entirely on the outside vendor you use and the type of screening you order. Greenhouse itself does not add wait time because it simply passes the request to your chosen vendor. Results can come back in as little as 24 hours for basic checks or take two weeks or more for complex, multi-state, or global screens.
Several factors affect how long your results take:
- Criminal record searches: County-level checks may take longer than database searches. This is especially true in areas that require manual records pulled from a courthouse. Multi-county or statewide searches add extra time.
- Job and school checks: These often depend on how fast past employers or schools respond, which can stretch timelines to five or more business days.
- Global screens: Candidates with overseas history can expect longer waits due to cross-border data access needs and foreign data privacy laws (e.g., the EU General Data Protection Regulation).
- Credit checks (where allowed): Wait time varies based on the credit bureau and the scope of the request.
To speed things up, make sure candidates get clear steps when the check is started from Greenhouse. Correct, complete candidate details reduce back-and-forth and shorten overall wait time. In addition, choosing a vendor with strong tools for built-in steps can make a clear difference in how fast results come back.
What Kind of Background Check Does Greenhouse Do?
The types of background checks you can run through Greenhouse are set by your chosen screening vendor, not by Greenhouse itself. Greenhouse serves as the workflow layer, while the vendor handles the actual screening packages. That said, most vendors linked to Greenhouse offer a full range of standard checks.
Common screening types you can access through Greenhouse add-ons include:
- Criminal history searches (federal, state, and county levels)
- Job history checks (Note: If the check includes salary or pay history, be aware that many states and cities ban asking for or using salary history in hiring choices.)
- School and degree checks
- Social Security number trace (used to find linked names and addresses for broader record searches; this is not an identity check or a work-permit tool)
- Motor vehicle record (MVR) checks
- Drug testing (Subject to major state-by-state rules, including laws around legal use of marijuana. Results count as medical data and must be kept in separate, private files per ADA rules.)
- Credit history checks (A growing number of states and cities limit or ban the use of credit history in hiring choices except for certain roles such as finance, management, or law roles. Employers must confirm that credit checks are allowed for the specific role and location before adding them to a screening package.)
- License checks for regulated roles
Your specific screening package will depend on the role, the field, and your company's policies. For example, a finance firm might require credit checks for certain roles, while a shipping company may focus on MVR reports. The key is setting up your vendor's options to match your legal and role needs, and making sure each screening type is allowed under the law for the specific role being filled.
Key Legal Points for Criminal History Checks
- Arrest vs. conviction records: Many areas ban employers from looking at arrest records that did not lead to a conviction. Because of this, employers should make sure their screening vendor is set up to report only conviction records in states where arrest-record use is not allowed.
- Lookback period limits: Several states limit how far back a vendor can report criminal records on consumer reports, often to seven years. Employers and their CRA partners must make sure searches follow each state's reporting rules.
- Ban-the-Box / Fair Chance laws: Many states and cities have passed laws that stop employers from asking about criminal history until after a conditional offer of work. As a result, employers should set up their Greenhouse pipeline to make sure background checks are not started before the legally required stage. Rules vary a great deal by location.
How Thorough Is a Greenhouse Background Check?
How thorough a background check is when run through Greenhouse is controlled by the screening vendor and the package you select, not by the Greenhouse platform. You can get very thorough results if you choose a vendor that offers multi-state searches, real-time data access, and processes that follow the FCRA. Greenhouse's role is simply to make sure the process fits neatly into your hiring workflow.
How thorough the results are typically comes down to a few key factors. First, the scope of criminal searches matters a great deal. A national database check casts a wide net, but county-level searches provide more accurate and current records. In most cases, a thorough approach combines both. Second, how deep the checks go is also important. For instance, some vendors only confirm dates of work, while others verify titles, duties, and reasons for leaving.
Handling Adverse Findings: Required Steps
When details in a background check may lead to a negative hiring choice (such as pulling back a conditional offer), employers must follow the FCRA's adverse-action process:
- Pre-adverse action notice: Before making a final choice, send the candidate a written pre-adverse action notice along with:
- A complete copy of the consumer report, and
- A copy of "A Summary of Your Rights Under the Fair Credit Reporting Act" (provided by the CFPB).
- Waiting period: Allow the candidate a fair amount of time, typically at least five business days, to review the report and dispute any errors.
- Case-by-case review: The EEOC's guidance says that employers should conduct a review of each case on its own, looking at: (a) the nature and gravity of the offense, (b) the time that has passed since the offense or end of the sentence, and (c) the nature of the job held or sought. Many state and local laws impose similar or stricter rules. Employers should not apply blanket "no hire" policies based on criminal records.
- Final adverse action notice: If, after the waiting period and review, the employer moves forward with the adverse action, a final adverse action notice must be sent to the candidate. This notice must include:
- The name, address, and phone number of the CRA that provided the report,
- A statement that the CRA did not make the adverse choice and cannot explain why it was made,
- Notice of the candidate's right to get a free copy of the report within 60 days, and
- Notice of the candidate's right to dispute the accuracy of any details in the report.
Greenhouse supports review workflows through its add-ons, so you can manage these steps within the platform. However, the duty to complete each legally required step rests with the employer, not the ATS or the CRA.
Note: Some states and cities (e.g., New York City, Los Angeles, Philadelphia) impose added adverse-action rules beyond the federal FCRA, including specific fair-chance review forms and longer waiting periods. Always confirm local rules.
Who Does Greenhouse Use for Background Checks?
Greenhouse partners with multiple background check vendors through its add-ons marketplace. These vendors connect to Greenhouse via API (see GCheck), letting hiring teams order and track screens from within the candidate workflow.
The variety of vendors means you can choose based on what matters most to your team. For instance, your top concerns might include speed, built-in legal tools, candidate experience, or overall cost.
When looking at which vendor to connect with Greenhouse, keep these criteria in mind:
- FCRA rules: Your vendor must follow Fair Credit Reporting Act rules, including proper candidate notices, allowed-purpose checks, adverse action workflows, dispute handling, and accuracy duties. The vendor should also have steps in place for following state versions of the FCRA.
- State and local law support: Choose a vendor that can adjust its screening packages, reports, and forms to the specific rules of every location where you hire, including Ban-the-Box laws, lookback limits, and added notice rules.
- How deep the link goes: Look for vendors that push real-time status updates back into Greenhouse rather than forcing manual check-ins.
- Candidate experience: The best links let candidates fill out consent forms and submit details through a smooth, mobile-friendly flow that meets notice rules.
- Reports and audit trails: For regulated fields especially, you need clear records of every step in the screening process, including proof of notice, consent, and adverse-action steps.
- Data security: Make sure the vendor uses data coding in transit and at rest, limits access to approved staff, and follows the FTC Disposal Rule (16 CFR §682) as well as state data-breach and privacy laws.
Choosing the right background check vendor is just as important as choosing the right ATS. A strong link between the two keeps your hiring process fast, in line with the law, and steady across every candidate.
What Users Are Saying About Greenhouse
On Capterra.com, one reviewer described Greenhouse as a strong ATS overall, though they noted some issues with its link to their CRA when managing more complex screening needs. Similarly, on G2.com, users often point out how the Greenhouse link with their CRA reduces manual effort by letting them start checks directly within their existing workflow. As a result, they do not need to switch between several platforms.
On Reddit.com, talks among hiring experts show that Greenhouse's ability to connect with screening vendors plays a big role in platform choices.
In addition, user feedback points to a key workflow detail: background checks typically require candidates to reach a set pipeline stage, such as being marked as hired or getting a conditional offer, before the screening process can begin. This workflow setup can help support following Ban-the-Box and fair-chance hiring laws, which in many areas ban criminal history questions before a conditional offer has been made. Employers should check the laws that apply in their area and set up their Greenhouse pipeline stages to match.
Disclaimer:This guide provides general learning content and is not legal advice. Background check laws vary by location and change often. Employers should consult qualified legal counsel to ensure their screening practices comply with all federal, state, and local laws that apply.
ABOUT THE CREATOR
GCheck Editorial Team
Meet the GCheck Editorial Team, your trusted source for insightful and up-to-date information in the world of employment background checks. Committed to delivering the latest trends, best practices, and industry insights, our team is dedicated to keeping you informed.
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