North Carolina Employment Screening Laws for 2025: A Comprehensive Guide

Navigating employment screening laws in North Carolina for 2025 requires a thorough understanding of federal and state regulations to ensure compliance and avoid costly lawsuits.

This guide provides an in-depth look at the key laws governing pre-employment background checks, focusing on criminal history usage, compliance with the Fair Credit Reporting Act (FCRA), Equal Employment Opportunity Commission (EEOC) guidelines, and North Carolina-specific regulations.

Optimized for clarity, this article is designed to help employers and HR professionals make informed hiring decisions while adhering to legal standards.

Key North Carolina Employment Screening Laws for 2025

Employers in North Carolina must comply with federal laws like the FCRA and Title VII of the Civil Rights Act of 1964, as well as state-specific regulations such as the North Carolina Equal Employment Practices Act (NCEEPA). Below, we outline the critical components of these laws and their implications for employment screening.

Fair Credit Reporting Act (FCRA) Compliance

The FCRA, enforced by the Federal Trade Commission (FTC), regulates how employers use consumer reports, including criminal background checks, for hiring decisions. Key requirements include:

• Written Consent: Employers must obtain written permission from applicants before conducting a background check. This disclosure must be clear and standalone, not embedded in a job application. FTC Guidance
• Pre-Adverse Action Notice: If an employer intends to deny employment based on a background check, they must provide the applicant with a copy of the report and a summary of their FCRA rights before taking action. FTC Consumer Advice
• Adverse Action Notification: After a decision is made, employers must send a final adverse action notice, including contact information for the consumer reporting agency (CRA) and a statement that the CRA did not make the hiring decision.

Non-compliance with FCRA can lead to significant penalties, including class-action lawsuits with damages ranging from $100 to $1,000 per violation.

EEOC Guidelines and Title VII

The EEOC enforces Title VII, which prohibits employment discrimination based on race, color, religion, sex, national origin, age (40 or older), disability, or genetic information. When using criminal history in hiring, employers must avoid practices that disproportionately impact protected groups, which could constitute disparate impact discrimination. The EEOC recommends the following:

• Individualized Assessment: Employers should consider the nature and gravity of the offense, the time elapsed since the offense, and its relevance to the job. EEOC Guidance
• Opportunity to Explain: Applicants should be given a chance to provide context or mitigating factors for their criminal history.
• Job-Related Consistency: Criminal history policies must be job-related and consistent with business necessity to avoid discrimination claims.

Failure to follow EEOC guidelines can lead to investigations and lawsuits, as seen in high-profile cases like EEOC v. Dollar General (2019), where the company paid $6 million for discriminatory background check practices.

North Carolina Equal Employment Practices Act (NCEEPA)

The NCEEPA prohibits discrimination based on race, color, national origin, religion, age, sex, or handicap for employers with 15 or more employees. While it does not provide a private right of action, it supports claims for wrongful discharge in violation of public policy. Employers must ensure background check policies align with NCEEPA to avoid state-level discrimination claims. N.C. Gen. Stat. Ann. §§ 143-422.1 to 143-422.3

North Carolina Ban the Box Laws

North Carolina has implemented “Ban the Box” laws in certain jurisdictions, such as Asheville and Durham County, which prohibit employers from asking about criminal history on initial job applications. These laws aim to ensure candidates are evaluated based on qualifications before criminal history is considered. Employers must delay criminal background checks until after a conditional job offer or initial interview to comply with local ordinances. The Justice Collaborative

Several North Carolina jurisdictions have adopted “ban the box” laws that restrict when employers can ask about criminal history:

• Durham: Applies to city contractors (Durham City Policy)
• Charlotte: Applies to city employment (Charlotte City Policy)

Criminal Offense Lookback Periods in North Carolina

Unlike some states that impose a seven-year limit on reporting criminal history, North Carolina does not restrict the lookback period for criminal convictions. Employers can consider an applicant’s entire accessible criminal history, including convictions from decades ago, unless the records have been expunged. However, the EEOC advises employers to weigh the age of the offense, as older convictions without subsequent offenses may be less relevant.

Tip: Many employers voluntarily limit criminal record checks to 7-10 years to comply with EEOC guidance and reduce discrimination risks.

Key points about criminal history in North Carolina:

• Expunged Records: Employers cannot inquire about or use expunged criminal records in hiring decisions. Applicants are not required to disclose expunged records. Nolo
• Pending Charges: North Carolina law allows employers to consider pending criminal charges, provided they comply with EEOC guidelines on individualized assessments.
• Non-convictions: Dismissed charges generally shouldn’t be considered after 7 years
• Accessing Records: Criminal records can be obtained through county clerks or the North Carolina State Bureau of Investigation, though comprehensive searches may require professional services to ensure accuracy and compliance.

Occupational Licensing & Charter Schools (2025 Updates)

• HB 775 (2025) mandates fingerprinted criminal checks for charter school boards, public school staff, and educator licensing
• Licensure authorities must consider only convictions “directly related” to the duties, allow appeal, and issue written determinations

Best Practices for Compliant Background Checks in 2025

To optimize hiring processes while adhering to North Carolina and federal laws, employers should:

• Partner with an FCRA-compliant background check provider to ensure accurate and legal reports.
• Develop clear policies for evaluating criminal history, focusing on job relevance and EEOC guidelines.
• Train HR staff on FCRA and EEOC requirements to minimize legal risks.
• Provide transparent communication with applicants about the background check process.
• Retain documentation of compliance actions, such as consent forms and adverse action notices, to defend against potential lawsuits.