Fair Credit Reporting Act

The federal act stipulates that the following information cannot be reported on an employer background check:

• Records of arrests, civil lawsuits and civil judgments after seven years
• Accounts put in for collection after seven years
• Paid tax liens after seven years
• Any other negative information -- criminal convictions being the exception -- after seven years.

While bankruptcies can be included in background checks, federal law prohibits discrimination against applicants who have filed for bankruptcy. In many but not all states, employers cannot seek arrest record information on applicants, though such information is a matter of public record, according to the Privacy Rights Clearinghouse. 

Source: Bankrate.com