Federal Law (FCRA)
The Fair Credit Reporting Act (FCRA) establishes the federal minimum requirements for employment background checks, including disclosure and authorization requirements, consumer rights, and the adverse action process. Many states impose additional requirements that employers must also follow.
Read FCRA OverviewRecommended Screening Components
The components below reflect common elements of a sales screening package. Requirements change based on whether the role requires a license and what customer information it can reach.
| Screening Component | What It Covers | Recommendation |
|---|---|---|
| Names and addresses associated with the applicant, which identify where to search. | ||
| Criminal records in the counties where the applicant has lived and worked. | ||
| Broad multi-state coverage that points toward records a county search would miss. | ||
| Past employers, dates, and titles. Verification rarely confirms quota or revenue claims. | ||
| State license status and disciplinary history. Licensed sales roles only. | ||
| Degree awarded, confirmed through the issuing institution. Uncommon in field sales. | ||
| Driving history, where the role travels a territory or drives a company vehicle. | ||
| Federal court records, added for licensed roles and roles handling customer funds. | ||
| Payment history and public records, required for mortgage originator licensing. | ||
| Fingerprint-based check, part of the licensing process in insurance, securities, and mortgage. | ||
| Pre-employment testing under employer policy, uncommon outside regulated settings. |
Screening components should always be job-related and consistent with applicable federal, state, and local laws.
Notes on This Package
Licensing separates two very different packages. A licensed sales role carries a state process with fingerprinting, defined disqualifying offenses, and public disciplinary records. An unlicensed sales role carries none of that. Both are called sales, and the packages have almost nothing in common.
Performance claims do not verify. Quota attainment, revenue figures, and ranking claims are the most commonly inflated statements on a sales resume, and employment verification returns dates and titles only. Former employers rarely release performance data, so these claims are confirmed through references or not at all.
Territory travel brings driving into the package. Outside sales roles cover a geographic territory, often in a company vehicle or with mileage reimbursement. The insurer generally sets what disqualifies a driver, and that standard reaches the sales role the same as any other driving position.
Customer data access is the quiet exposure. Sales roles hold contact records, purchase history, contract terms, and pricing across an account base. That data has value to a competitor, and it leaves with the person. This drives screening more often in enterprise sales than the transaction amounts do.
When Sales Requires a License
Four sales fields require a state license before a person can sell, and each carries its own criminal history standard.
Insurance
Producers are licensed by each state where they sell, and most states fingerprint applicants. Federal law separately bars a person convicted of a felony involving dishonesty or breach of trust from the business of insurance without written consent from the state insurance regulator.
Securities
Registered representatives are fingerprinted, disclose criminal and financial history on Form U4, and are verified against public records by the firm. Prior employment, customer complaints, and regulatory actions are published in a database anyone can search.
Mortgage
Loan originators submit fingerprints for an FBI criminal check and authorize a credit report through the national licensing system. A felony within the prior 7 years disqualifies an applicant, and a felony involving fraud, dishonesty, breach of trust, or money laundering disqualifies permanently.
Real estate
Agents and brokers are licensed by state real estate commissions, which set their own character standards and publish disciplinary actions. Most agents work as independent contractors rather than employees, which changes who screens whom.
Where Screening Changes
The same job title carries different requirements depending on the setting.
| Financial Services | Insurance, securities, and mortgage sales all require licensing with fingerprinting, defined disqualifiers, and public disciplinary records. |
| Technology | Enterprise sales staff reach customer data and demonstration environments, and customer security agreements can specify screening terms. |
| Healthcare | Representatives entering clinical facilities are credentialed by the facility, and organizations billing federal programs check exclusion lists. |
| Retail | Store sales associates handle cash and payment cards, and screening centers on transaction access rather than on account relationships. |
| Professional Services | Business development staff work on client premises, where the client’s vendor requirements govern access. |
| Manufacturing | Sales engineers enter plants and reach technical data, some of which is export controlled and restricted by U.S. person status. |
Screening Considerations
License Status and Discipline
State boards and licensing systems show current status and published disciplinary actions. A person licensed in several states carries a separate record in each, and licenses lapse when continuing education is not completed.
Statutory Disqualifiers
Licensed sales fields define offenses that bar a person from holding the license. Some bars expire and some are permanent, and where a statute lists an offense the employer has no discretion to weigh it.
Performance Claims
Quota attainment and revenue figures do not appear in employment verification. Former employers release dates and titles, so these claims are confirmed through references or left unverified.
Customer Data Access
Contact records, contract terms, and pricing sit in sales systems and have competitive value. Enterprise customers sometimes specify screening for anyone reaching their account information.
Territory Driving
Outside sales roles travel a territory, often in a company vehicle. The insurer generally sets what disqualifies a driver, which brings driving records into a non-driving position.
Credit Reports in Licensing
Mortgage originator licensing requires a credit report as part of the application. Outside that, several states restrict employment credit checks to positions meeting a defined exception.
Facility Credentialing
Representatives entering hospitals, plants, or secured client sites are credentialed by the facility, which sets its own requirements and timelines independent of the employer’s screening.
Independent Contractor Status
Many sales roles, particularly in real estate and insurance, are structured as independent contractors. The FCRA applies to reports obtained on them, and extensive screening can bear on the classification.
Common Questions
Does sales require a license?
Only in specific fields. Insurance, securities, mortgage, and real estate require one. Most other sales work requires nothing.
Can quota claims be verified?
Rarely. Employment verification returns dates and titles, and former employers do not release performance data.
Why check driving for a sales role?
Because territory travel usually involves a company vehicle or reimbursed mileage. The insurer covering that driving sets the standard.
Is a credit check allowed?
Mortgage licensing requires one. Otherwise several states restrict employment credit checks to positions meeting a stated exception.
How is a sales license verified?
Through the state agency or licensing system that issued it, which shows status and published discipline. Each state of licensure is checked separately.
Are disciplinary records public?
In licensed fields, yes. Securities registration history and most state license records are searchable by name.
Do independent contractors get screened?
Often, and the FCRA applies to those reports. Screening depth can also bear on whether the classification holds up.
What does the customer require?
Enterprise and healthcare customers sometimes set screening or credentialing terms for representatives reaching their sites or data, separate from the employer’s own package.
Worth Knowing
Two Sales Jobs Can Carry Opposite Requirements
An insurance producer is fingerprinted, licensed by every state where they sell, and barred by federal law for certain convictions. A software sales representative faces no legal requirement at all. Both are sales positions.