Past criminal and financial transgressions, even when of questionable job relevance, can harm job‐seekers' prospects. In three hiring simulation experiments, manipulations of situational factors hypothesized to alter decision focus moderate the effect of background report information on applicant evaluations. In Study 1, emphasizing in‐role performance as a hiring goal decreases the weight placed on transgressions relative to standard qualifications. Study 2 demonstrates this context effect with a different design and experienced hiring professionals, and finds that delaying background checks heightens a transgression's impact. In Study 3, presenting novel positive information in conjunction with a criminal offense mitigates the delay effect. By adopting a behavioral decision perspective, this research illuminates how situational factors shape the impact of a widespread form of stigma.