Montana Employment Background Screening Laws in 2025

A practical guide to Montana background screening laws 2025, including ban-the-box Montana, employment credit reports restrictions, criminal background checks, and AI background checks.

At a glance: This guide covers statewide rules, federal overlays, and local practices for criminal background checks, ban‑the‑box, employment credit reports restrictions, and AI background checks in Montana. It cites official Montana resources, including the Department of Justice (DOJ), Department of Labor & Industry (DLI), and the Montana Code Annotated (MCA).

Core legal framework in Montana

Montana Code Annotated and state agencies

Montana’s employment laws sit in the Montana Code Annotated (MCA). The MCA is published by the Legislature. Montana agencies also publish compliance guidance.

The federal FCRA governs consumer reports used for employment. See Regulation V (FCRA) and FTC FCRA page.

Montana Human Rights Act and the WDEA

The Montana Human Rights Act (MHRA) prohibits employment discrimination. It applies to hiring, screening, and adverse actions. See Human Rights Bureau for enforcement and filing instructions.

Montana’s unique Wrongful Discharge from Employment Act (WDEA), MCA 39‑2‑901 et seq., sets standards for terminations. It limits remedies but requires good cause after probation.

Criminal background checks: lookback limits and use

How far back can employers look?

Under the FCRA, consumer reporting agencies cannot report non‑conviction adverse information older than seven years. This includes arrests not leading to conviction. See 15 U.S.C. § 1681c and CFPB Regulation V guidance.

Convictions may be reported indefinitely under the FCRA, unless sealed or expunged. Montana law does not impose a shorter statewide limit on reporting convictions. Therefore, employers can see older convictions if they are legally reportable and job‑related.

Employers should use lawful purposes, obtain written consent, and follow FCRA procedures. Additionally, they should retain disclosures and authorizations.

Job-related use and disqualifying offenses

Employers must use criminal data in a job‑related and consistent manner. The MHRA prohibits discrimination that disproportionately screens out protected groups. Therefore, tailor your criteria to business necessity.

• Childcare and vulnerable populations: violent crimes and sex offenses can disqualify candidates.
• Law enforcement and public safety: felony convictions, domestic violence misdemeanors, and weapons offenses are often disqualifying.
• Fiduciary and finance roles: fraud, embezzlement, and identity theft relate closely to duties.

When required by statute or licensing, apply mandatory bars. Otherwise, consider the nature of the offense, time elapsed, and job duties. Document your analysis.

Ban-the-box laws in Montana

As of 2025, Montana has not enacted a statewide ban‑the‑box statute for private employers. Consequently, there is no universal state rule that forbids asking about criminal history on every initial job application.

However, many Montana public employers follow fair‑chance hiring practices. Some cities and state agencies delay conviction inquiries until later phases for public jobs. Because policies can change, verify local rules on official government sites before posting requisitions.

What employers should do now

• Delay conviction questions until after an initial screen or conditional offer, when feasible.
• Use targeted, job‑related questions rather than broad criminal history bans.
• Apply exceptions for law enforcement, childcare, and positions requiring fidelity bonds.
• Check your agency or municipality’s HR page for fair‑chance policies.

Note: Because Montana does not have a comprehensive statewide ban‑the‑box rule for all private employers, municipalities may adopt internal policies for public hiring. Always confirm with local government HR pages ending in .gov or .us.

Restrictions on employment credit reports

The FCRA governs employment credit checks nationwide. Employers must obtain written authorization before requesting a credit report. Additionally, they must provide pre‑adverse and adverse action notices if the report leads to denial.

Montana has not enacted a broad statewide ban on employment credit checks. Therefore, employers may use credit reports when the role involves financial responsibility. Examples include accounting, finance, cash handling, or access to sensitive financial systems.

Best practices and protections

• Request credit reports only when duties justify them.
• Limit access to Social Security numbers and credit scores to necessary personnel.
• Provide the FCRA summary of rights from the CFPB before taking adverse action.
• Offer a reasonable time to respond to inaccuracies.

Montana consumers also have the right to security freezes with consumer reporting agencies. A freeze can delay background checks until the applicant lifts it.

Adverse action steps under the FCRA

1. Give a pre‑adverse notice, a copy of the report, and the CFPB rights notice.
2. Wait a reasonable period for disputes or explanations.
3. Issue the final adverse action notice with the required disclosures.

Keep copies of notices and timestamps. Consequently, you will have a defendable record if challenged.

AI background checks and automated decision tools

Employers increasingly use AI to screen resumes and evaluate risk. However, automated tools can create disparate impact if not validated and monitored. The MHRA applies to AI‑assisted decisions, just like traditional decisions.

Montana also enacted a consumer data privacy framework that governs certain processing of personal data by covered entities. See the Montana Legislature’s bill database for 2023 privacy legislation and the DOJ Consumer Protection portal for privacy resources and complaints.

• Map data flows from AI vendors and ensure contractual FCRA and privacy compliance.
• Conduct bias and validity testing on scoring or risk‑flagging systems.
• Provide notice when automated tools inform employment decisions.
• Offer a human review channel to handle disputes or accommodations.

Consent, disclosures, and recordkeeping

Use a standalone FCRA disclosure and authorization. Do not bundle it with other forms. Keep signed authorizations and all adverse action notices. Additionally, retain vendor certifications and audit logs for AI tools and screening platforms.

When handling fingerprints or criminal records, follow Montana DOJ submission rules. See DOJ Background Checks for collection standards and authorized uses.

Municipal and sector‑specific nuances

Some Montana public employers delay conviction inquiries for city or county jobs. Policies vary by jurisdiction. Therefore, always check the HR pages for the relevant city or county government before posting.

In licensed sectors, state or federal rules may mandate checks. Examples include childcare, healthcare, banking, and law enforcement. Consult the responsible licensing board or agency site for screening requirements.