Inside Costco‘s Background Check Policy: What Every Applicant Should Know

Applying for a job can be a nerve-wracking process, especially when it comes to background checks. Many job seekers worry about what a potential employer might uncover about their past. If you‘re considering applying for a position at Costco Wholesale, one of the largest retailers in the US, you‘re probably wondering: does Costco conduct background checks on employees?

The answer is a resounding yes. Costco, like most major employers today, requires all job candidates to pass a thorough background screening before they can be hired. In fact, submitting to a background check is a standard step in Costco‘s hiring process. No one gets through the door without one.

The Prevalence of Pre-Employment Background Checks

Costco is far from alone in their background check policy. A survey from the Society for Human Resource Management found that 92% of employers conduct background checks on some or all job candidates. It‘s a ubiquitous practice across industries.

Employers have compelling reasons to screen applicants. The same SHRM survey revealed the top reasons companies conduct background checks:

Reason for Conducting Background Checks Percentage of Employers
Protect employees and customers 86%
Improve quality of hires 52%
Protect company reputation 45%
Comply with legal requirements 39%
Prevent or reduce theft 36%

As you can see, ensuring a safe work environment is the primary driver behind background checks. Employers want to minimize the risk of bringing in someone with a concerning criminal history, especially for positions that involve direct interaction with customers or access to sensitive information.

What Costco‘s Background Check Covers

Costco‘s pre-employment background check is extensive. According to current and former employees, it typically includes:

  • Criminal history check: Costco will pull records from county, state, and federal databases to see if you have any misdemeanor or felony convictions.
  • Employment verification: Costco will contact your previous employers to confirm the positions you held, your dates of employment, and possibly your job performance and reason for leaving.
  • Education verification: If you have degrees or certifications listed on your resume, Costco will check with the institutions to make sure you actually earned them.
  • Motor vehicle records check: For positions that require driving, such as delivery drivers or forklift operators, Costco will review your driving history for any serious violations or accidents.
  • Reference checks: The professional and personal references you provide will likely be contacted to get a sense of your work ethic, character, and qualifications.

Notably absent from this list is a credit check. Unlike some employers, Costco does not look at applicants‘ credit reports or financial history as part of the standard screening process.

Costco‘s Approach to Hiring People with Criminal Records

One of the biggest concerns applicants have about background checks is how a criminal record might impact their chances of getting hired. Will Costco automatically reject someone with a felony or misdemeanor conviction? The short answer is: it depends.

Costco evaluates candidates with criminal records on a case-by-case basis. They don‘t have a blanket ban on hiring people with convictions. In fact, many current and former Costco employees have shared stories of working alongside colleagues who had criminal histories but have proven to be hardworking, reliable team members.

However, certain serious offenses may be disqualifying, especially if they are directly relevant to the job duties. For example, a conviction for theft or embezzlement would likely be a dealbreaker for a position handling cash or merchandise. Violent crimes could also raise red flags, since Costco has to prioritize the safety of customers and staff.

Costco also has to comply with legal restrictions on hiring people with certain convictions. For instance, federal law prohibits banks and credit unions from hiring people convicted of specific financial crimes.

The key for applicants with a criminal record is to be upfront and honest about it. Trying to hide a conviction is more likely to disqualify you than the conviction itself, because it calls your integrity into question. If you proactively disclose your record and can demonstrate how you‘ve grown and rehabilitated yourself, Costco may be willing to give you a fair shot.

Limits on How Far Back Background Checks Can Go

If you made some mistakes in your distant past, you may be wondering how long they will follow you on background checks. The good news is, there are some legal limits on how many years back employers can search for certain records.

In most states, background checks can only report criminal convictions going back seven years. Some states allow a longer lookback period for jobs with high salaries. Here‘s a breakdown of the restrictions by state:

Years States
7 years CA, CO, KS, MD, MA, MT, NV, NH, NM, NY, TX, WA
5 years AK, IL, MI, OK, RI
10 years FL, GA, IN, ME, MO, OH, PA, UT, WV
No limit AL, AR, AZ, CT, DC, DE, HI, ID, IA, KY, LA, MS, NE, NJ, NC, ND, OR, SC, SD, TN, VT, VA

These limits usually only apply to convictions though, not your entire criminal record. Arrests that didn‘t lead to convictions may still show up indefinitely if you were fingerprinted.

Also, these restrictions are just on the information that can be reported on the final background check – it doesn‘t necessarily stop employers from asking about your complete history in interviews or on applications. That‘s why some states and cities have passed "ban the box" laws.

How Ban the Box Laws Impact Costco‘s Hiring Process

Ban the box laws prohibit employers from asking about applicants‘ criminal history on the initial job application. The goal is to prevent candidates from being screened out right off the bat, before they have a chance to present their qualifications.

Over 35 states and 150 cities have passed ban the box laws, and some of them have expanded the restrictions beyond the application stage. In some locations, employers can‘t ask about criminal history until after the first interview or even after a conditional job offer.

Costco has publicly stated that they do not ask about criminal records on their job applications as a standard practice. This demonstrates their commitment to evaluating candidates holistically.

However, Costco still reserves the right to inquire about criminal history later in the hiring process. It‘s unclear exactly when Costco asks the question, since it may vary by location based on local laws. Applicants should still be prepared to discuss their record honestly whenever it does come up.

Understanding Your Rights in the Background Check Process

As a job applicant, you have certain rights when it comes to employer background checks. It‘s important to know what they are so you can advocate for yourself and make sure the process is fair.

Under the federal Fair Credit Reporting Act (FCRA), employers must:

  • Get your written permission before running a background check
  • Give you a copy of the background check report if they use it to make an adverse hiring decision
  • Allow you to dispute any inaccurate information in the report

Some states have additional requirements, such as providing you with a copy of the report even if no adverse action is taken. If you live in California, you have the right to see a copy of your report at any time, upon request.

If you know something negative is likely to come up on your background check, it‘s a good idea to get out in front of it. Consider running a background check on yourself first so you know exactly what employers will see. If you find any errors, you can start the dispute process to get them corrected.

You should also let your references know that Costco may contact them, so they can be prepared to speak positively on your behalf. Avoid listing references who may have negative things to say about you, even if they are former supervisors. It‘s better to have strong character references than a complete job history if you have to choose.

Costco‘s Core Values and Commitment to Fair Hiring

To understand Costco‘s approach to background checks and hiring, it‘s helpful to look at their overarching company values. Costco is known for its strong ethical culture, which is reflected in their mission statement: "To continually provide our members with quality goods and services at the lowest possible prices."

Underlying this mission is a set of core values that guide everything Costco does:

  1. Obey the law
  2. Take care of our members
  3. Take care of our employees
  4. Respect our suppliers

These values demonstrate Costco‘s commitment to integrity, fairness, and social responsibility. They want to do right by all of their stakeholders, including employees.

This ethical framework informs Costco‘s hiring practices. They aim to give candidates a fair evaluation based on their qualifications, not just their history. At the same time, they have to balance that principle with their duty to maintain a safe environment for customers and staff.

Costco‘s participation in the E-Verify program also shows their good faith effort to maintain a legal workforce and avoid discrimination based on citizenship status. E-Verify is a federal system that allows employers to confirm whether new hires are authorized to work in the US.

While background checks may feel invasive, they are a necessary step for building trust between employer and employee. By being transparent and even-handed in the process, Costco aims to start off on the right foot with new hires.

Benefits of Working at Costco

If you‘re applying for a job at Costco, you probably know they have a reputation as an excellent employer. They are consistently ranked as one of the best places to work thanks to their generous pay, benefits, and positive workplace culture.

Here are some of the perks that make Costco a desirable employer:

  • Industry-leading wages, with an average hourly rate of over $22
  • Affordable and comprehensive health insurance, including dental and vision coverage
  • 401(k) plan with company match
  • Paid time off and holidays
  • Opportunities for advancement and promotion from within
  • Employee discounts on Costco merchandise
  • Inclusive, team-oriented work environment

Landing a job at Costco can be the start of a long and rewarding career. It‘s understandable that candidates are eager to get through the hiring process and start reaping these benefits.

Conclusion

To sum it up, yes, Costco does require all job applicants to pass a background check before they can be hired. This screening typically includes a criminal history check, employment and education verification, reference check, and possibly a motor vehicle records check depending on the position.

While this may make some candidates nervous, Costco aims to implement their background check process fairly and consistently. They evaluate criminal records on a case-by-case basis, in compliance with ban the box laws and other regulations.

Applicants can prepare by running a self-check first, gathering necessary documents, and being ready to discuss their history openly. If something negative does come up, it‘s not necessarily the end of the road. Costco is often willing to give people second chances if they can demonstrate rehabilitation and strong qualifications.

At the end of the day, Costco‘s background check policy reflects their commitment to creating a safe, trusting, and ethical workplace. They want to build a workforce of individuals with integrity. While the process may be rigorous, the rewards of working at Costco are well worth it for many.

The keys to success are honesty, transparency, and a positive attitude. With the right preparation and mindset, you can navigate Costco‘s hiring process with confidence and land a great job with an industry-leading employer.