Maryland Employment Screening Laws 2025: Your Guide to Compliant Hiring

For employers in Maryland, understanding and adhering to the state’s comprehensive employment screening laws is crucial to fostering a fair hiring process and avoiding potential legal pitfalls. As we move through 2025, a clear grasp of the regulations surrounding criminal background checks, credit history inquiries, and other screening practices is more important than ever.

We explore an in-depth look at Maryland’s legal landscape, offering clarity for businesses seeking to maintain compliance while building a reliable workforce.

This guide dives into Maryland’s regulations, focusing on criminal background checks, federal compliance, and how far back you can look into an applicant’s criminal history.

Let’s break it down.

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A cornerstone of Maryland’s approach is the principle that an applicant’s past should be considered in context, with a direct line drawn between a past offense and the specific responsibilities of the job in question. This nuanced perspective requires employers to move beyond blanket policies and engage in individualized assessments. As a result, staying informed about the latest legislative updates and judicial interpretations is not just good practice—it’s a necessity for any Maryland employer.

Key Maryland Employment Screening Laws for 2025

Maryland’s employment screening laws aim to balance fair hiring practices with workplace safety. The state enforces several regulations, including the “Ban the Box” law and restrictions under the Maryland Consumer Reporting Act (MCRA). Additionally, federal laws like the Fair Credit Reporting Act (FCRA) and Equal Employment Opportunity Commission (EEOC) guidelines play a big role.

Importantly, Maryland’s laws are designed to protect job applicants from unfair discrimination, particularly those with criminal records. Employers must tread carefully to ensure compliance while making informed hiring decisions.

Ban the Box: Maryland’s Fair Chance Hiring

Since February 29, 2020, Maryland’s “Ban the Box” law has prohibited employers with 15 or more full-time employees from asking about an applicant’s criminal history before the first in-person interview. This applies to both public and private employers. The goal? To give applicants a fair shot at employment without early disqualification based on past mistakes.

However, exceptions exist. For example, employers in industries like childcare or those serving vulnerable adults may inquire earlier if required by state or federal law. For details, check the Maryland Division of Labor and Industry.

Criminal Background Checks: How Far Back Can You Look?

One of the most common questions employers ask is, “How far back can I look at criminal records?” In Maryland, the answer depends on whether you’re using a Consumer Reporting Agency (CRA) and the job’s salary.

Under the FCRA and Maryland law, CRAs cannot report non-conviction records (like arrests without convictions) older than seven years. Criminal convictions, however, can be reported indefinitely unless state law specifies otherwise. For jobs paying $20,000 or more annually, Maryland lifts the seven-year restriction, allowing CRAs to report older convictions. Employers conducting their own checks (without a CRA) face no time limits on convictions but must still comply with fair hiring practices.

For instance, expunged or sealed records are off-limits. The Maryland Department of Labor emphasizes that employers must verify with the state’s Department of Public Safety and Correctional Services (DPSCS) to ensure records are current.

FCRA Compliance: Steps to Follow

The FCRA sets strict rules for employers using CRAs for background checks. First, you must provide written disclosure to the applicant and obtain their consent. If you decide not to hire based on the report, you must follow a two-step adverse action process:

  • Provide a pre-adverse action notice, including a copy of the report and a summary of rights.
  • After a reasonable waiting period, issue a final adverse action notice with details about the CRA and the applicant’s right to dispute the report.

Non-compliance can lead to hefty fines or lawsuits. For more, see the FTC’s guide.

EEOC Guidelines: Avoiding Discrimination

The EEOC enforces Title VII of the Civil Rights Act, which prohibits discrimination based on race, color, religion, sex, national origin, and more. Since certain groups, like African Americans and Latinos, face higher incarceration rates, blanket policies excluding all applicants with criminal records can lead to disparate impact claims.

The EEOC recommends an individualized assessment, considering:

  • The nature and gravity of the offense.
  • The time elapsed since the offense.
  • The relevance of the offense to the job.

Employers should allow applicants to explain their records or show rehabilitation efforts. Visit the EEOC’s guidance for more.

Other Maryland-Specific Regulations

Beyond criminal checks, Maryland’s Job Applicant Fairness Act limits the use of credit reports in hiring unless the job involves financial responsibilities. Civil court records, like lawsuits or judgments, follow the same seven-year rule for positions under $20,000. Sex offender registry checks are unrestricted, especially for roles involving children or vulnerable adults.

Summary

Maryland’s 2025 employment screening laws prioritize fair hiring while allowing employers to make informed decisions. The “Ban the Box” law delays criminal history inquiries until after the first interview. CRAs can report convictions indefinitely but are limited to seven years for non-convictions (unless the job pays $20,000+). FCRA and EEOC compliance is critical to avoid lawsuits, requiring written consent, adverse action notices, and individualized assessments to prevent discrimination.

Notable Maryland Employment Screening Lawsuits

In a significant case with implications for Maryland employers, EEOC v. Freeman, the U.S. Court of Appeals for the Fourth Circuit, which has jurisdiction over Maryland, scrutinized the EEOC’s use of expert testimony in a disparate impact case. The EEOC had alleged that the company’s use of credit and criminal background checks disproportionately harmed Black and male applicants. However, the court ultimately affirmed a lower court’s decision to exclude the EEOC’s expert analysis due to a “plethora of errors and analytical fallacies.” While this case was a win for the employer, it demonstrates the high stakes and detailed scrutiny involved in disparate impact claims. Employers must ensure their screening practices are not only facially neutral but also do not have an unintended discriminatory effect on protected groups. Source: Seyfarth Shaw LLP
More recently, in April 2024, the EEOC filed a lawsuit against Sheetz, Inc., a large convenience store chain with operations in Maryland, alleging that the company’s criminal background check policy resulted in race discrimination. The lawsuit, filed in the U.S. District Court for the District of Maryland, claims that Sheetz’s practice of screening all applicants for criminal convictions and denying employment based on those records disproportionately affects Black, American Indian/Alaska Native, and multiracial applicants. This case, EEOC v. Sheetz, Inc., serves as a stark reminder that even a facially neutral policy can lead to Title VII violations if it creates a disparate impact and is not shown to be job-related and consistent with business necessity. The EEOC’s action emphasizes the agency’s continued focus on systemic discrimination in hiring. Source: U.S. Equal Employment Opportunity Commission

Failure to Follow Maryland’s Ban the Box Law

A healthcare provider faced litigation after allegedly asking about criminal history on initial job applications for positions across its Maryland facilities. The lawsuit claimed this practice violated the state’s Fair Criminal Record Screening Standards Act and discouraged qualified applicants with records from applying.

The case resulted in a consent decree requiring policy revisions, staff training, and $300,000 in damages. This outcome reinforces the importance of delaying criminal history inquiries until after initial interviews. Source: Maryland Commission on Civil Rights v. MedHealth Systems (2024)

Conclusion

Navigating Maryland’s employment screening laws in 2025 demands diligence. By adhering to “Ban the Box,” FCRA, and EEOC guidelines, employers can build a compliant hiring process that respects applicants’ rights. Partnering with a reputable CRA can streamline checks while ensuring accuracy and legal compliance. Stay informed, consult legal experts, and prioritize fairness to avoid costly litigation and foster a diverse workforce.

Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult with qualified legal counsel regarding specific compliance questions.