There is no law or regulation that prohibits employers from conducting their own background screening. In fact, many organizations, especially smaller companies or those hiring infrequently, assume that doing it themselves will be faster, cheaper, or more flexible. But while in‑house screening is legally permitted, it comes with both benefits and meaningful tradeoffs that employers should understand before choosing that path.
The Pros
One advantage of employer‑led screening is control. Employers can decide exactly what to look for, how deep to go, and how the information is weighed in hiring decisions.
Cost is another perceived benefit. By avoiding third‑party screening vendors, employers may reduce direct expenses, at least on the surface. For organizations with limited hiring volume, internal screening can seem economically efficient.
Finally, some employers value the speed and informality of conducting their own research, especially when reviewing publicly available information or calling references directly. When done carefully, this can support timely decision‑making.
The Cons
The biggest downside is increased legal and compliance risk. While laws like the Fair Credit Reporting Act (FCRA) primarily apply when third‑party screening companies are used, employers conducting their own checks are still subject to anti‑discrimination laws, state and local fair‑chance rules, privacy considerations, and consistency requirements. Without structured processes, it’s easy for internal screening to become uneven, undocumented, or vulnerable to unconscious bias.
Accuracy is another concern. Public records are often incomplete, outdated, or misleading when viewed without proper context. Employers relying on surface‑level searches may unintentionally base decisions on incorrect or mismatched information, creating both legal exposure and reputational harm.
There’s also the issue of internal capacity and expertise. Effective background screening isn’t just about finding information; it’s about interpreting it. Understanding how to assess relevance, and apply findings consistently requires experience. Many employers underestimate the level of expertise required.
Finally, in‑house screening can blur accountability. When adverse decisions are challenged, employers must be able to show how information was obtained, evaluated, and applied fairly. Without third‑party documentation or standardized workflows, that defense becomes harder.
The Bottom Line
Employers can conduct their own employment background screening, but permission does not equal protection. Whether screening is handled internally or with external support, the process must be lawful, consistent, accurate, and grounded in sound judgment. Cutting corners on screening may save time upfront but it often costs more later.
Disclaimer: This communication is for general informational purposes only and does not constitute legal advice. The summary provided in this alert does not, and cannot, cover in detail what employers need to know about the amendments to the Philadelphia Fair Chance Law or how to incorporate its requirements into their hiring process. No recipient should act or refrain from acting based on any information provided here without advice from a qualified attorney licensed in the applicable jurisdiction.