North Carolina Background Check Laws for Employers
North Carolina leaves most screening decisions to the employer, but it is not a hands-off state. Private employers with 25 or more employees must run every new hire through E-Verify, drug testing must follow the Controlled Substance Examination Regulation Act, and expunged records are off limits by statute. This guide covers each rule, names the agency behind it, and explains the federal FCRA steps that apply on top.
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North Carolina employment screening laws at a glance
North Carolina has no state consumer-reporting statute of its own, so the federal FCRA carries the process rules. The state statutes below add E-Verify, drug-testing procedure, expunction protections and a negligent-hiring shield.
| Rule | What it requires | Administering agency |
|---|---|---|
| Federal FCRA, 15 U.S.C. § 1681 et seq. | Stand-alone disclosure, written authorization, pre-adverse and adverse-action notices, seven-year limit on reported non-convictions below $75,000. | Consumer Financial Protection Bureau; Federal Trade Commission; private suits |
| N.C. Gen. Stat. §§ 64-25 to 64-38 (E-Verify) | Private employers with 25 or more employees in North Carolina must verify new hires through E-Verify; workers whose term of employment is less than nine months in a calendar year are excluded. State agencies, counties and cities are covered by separate sections. | North Carolina Commissioner of Labor |
| N.C. Gen. Stat. § 15A-153 (expunction) | Employers may not ask applicants to disclose expunged arrests, charges or convictions, and applicants need not disclose them. | Superior and district courts; State Bureau of Investigation records |
| N.C. Gen. Stat. § 15A-146(a4) (automatic expunction) | Charges dismissed or ending in a not-guilty verdict on or after December 1, 2021 are expunged by operation of law 180 to 210 days after disposition. The 2022 suspension expired July 1, 2024, and S.L. 2024-35 (July 8, 2024) revised the process. | Administrative Office of the Courts |
| N.C. Gen. Stat. §§ 15A-173.1 to 15A-173.6 (certificates of relief) | An employer that relies on a certificate of relief is shielded from negligent-hiring liability for the certified conviction. | Superior and district courts |
| N.C. Gen. Stat. § 95-230 et seq. (Controlled Substance Examination Regulation Act) | Drug tests must use an approved laboratory, chain of custody and confirmatory testing; applicants may be screened on site with a single-use device, with any positive confirmed by an approved laboratory unless the applicant waives it in writing. | North Carolina Department of Labor (penalties up to $250 per examinee) |
| Executive Order 158 (August 18, 2020) | State agencies under the Governor remove the criminal-history question from applications and may not inquire into or consider criminal history before the initial interview is complete. Does not bind private employers. | Office of State Human Resources |
| N.C. Gen. Stat. § 143-422.2 (Equal Employment Practices Act); Title VII | Public policy against discrimination on protected traits; the EEOC guidance treats blanket criminal-record exclusions as a disparate-impact risk. | U.S. EEOC; North Carolina courts |
| N.C. Gen. Stat. § 93B-8.1 | Occupational licensing boards may deny a license for a conviction only after weighing listed factors and finding the offense directly relates to the occupation. | Each licensing board |
The FCRA process every North Carolina employer must follow
The federal Fair Credit Reporting Act governs every background check a consumer reporting agency prepares for a North Carolina employer. The state rules on this page sit on top of it, never in place of it.
North Carolina has not enacted a state fair credit reporting act, so there is no second set of notices to send. Follow the federal sequence exactly and keep proof of each step.
Disclose and authorize
Give the applicant a clear, stand-alone disclosure that a consumer report may be obtained for employment purposes, and get written authorization before you order. Keep the disclosure free of liability waivers and extra language.
Order the right scope
Match the search to the position. Order criminal, driving, credit, and verification searches only where the job supports them, and apply the same package to every candidate for the same position.
Pre-adverse action
Before you decide against a candidate because of the report, send a copy of the report and the CFPB Summary of Your Rights, then wait a reasonable period, commonly five business days, so the candidate can dispute errors.
Adverse action notice
If you proceed, send the final notice naming the screening company, stating that it did not make the decision, and explaining the right to a free file copy within 60 days and the right to dispute.
Ban the box in North Carolina
North Carolina has no ban-the-box statute for private employers. You may ask about convictions on the application, at the interview, or later.
State agencies: Executive Order 158
Executive Order 158, signed August 18, 2020, directs state agencies under the Governor to remove criminal-history questions from applications and bars them from inquiring into or considering a candidate’s criminal history before the initial job interview is complete. It binds state hiring, not private employers.
Local fair-chance policies
Durham, Charlotte, Asheville, Mecklenburg County and several other local governments adopted fair-chance policies for their own hiring, and some apply them to contractors. Check the contract terms if you sell services to those governments.
What still limits the decision
Title VII and the EEOC enforcement guidance apply to every North Carolina employer with 15 or more employees. A blanket “no convictions” rule invites a disparate-impact charge. Weigh the offense, the time elapsed and the job before you act.
Practical policy
Moving the conviction question to the interview stage costs nothing and keeps a multistate policy consistent.
Whatever stage you choose, apply it to every candidate for the same position and document the reason for any exception.
Which North Carolina records you may and may not use
North Carolina court records are public through the clerk of superior court in each county and, increasingly, through the eCourts portal. Three statutes take certain records off the table.
Expunged records
Under N.C. Gen. Stat. § 15A-153 an employer may not ask an applicant to disclose an expunged arrest, charge or conviction, and the applicant may answer as if it never happened. A screening company that reports an expunged record after notice can be liable.
Automatic expunction
The Second Chance Act (S.L. 2020-35) made expunction of dismissed charges and not-guilty verdicts automatic under § 15A-146(a4), 180 to 210 days after disposition, for cases disposed on or after December 1, 2021. S.L. 2022-47 suspended the process from August 1, 2022; the suspension expired July 1, 2024, and S.L. 2024-35 (effective July 8, 2024) revised the rules and gave the courts a year to clear the backlog. A dismissal you saw on a report last year may no longer be reportable.
Certificates of relief
A court may issue a certificate of relief under §§ 15A-173.1 to 15A-173.6. An employer that knew of the certificate when it hired is protected from negligent-hiring claims based on the certified conviction. Ask for it when a candidate mentions one. See Article 6.
Arrests and pending charges
No North Carolina statute bars considering arrests, but the federal FCRA limits reported non-convictions to seven years below $75,000. An arrest alone does not prove conduct; the EEOC guidance calls for looking at the underlying facts.
Juvenile records
Juvenile court records are confidential under N.C. Gen. Stat. § 7B-3000 and are not available for private employment screening. Do not ask about them.
Licensed occupations
Under § 93B-8.1, an occupational licensing board may deny a license for a conviction only if it directly relates to the occupation, after weighing the seriousness, age at the time, time elapsed and rehabilitation. Employers of licensed staff should mirror that analysis.
How far back a North Carolina background check can go
North Carolina has no reporting-limit statute of its own. The federal FCRA sets the outer limits, and your own policy decides how much of that window you use.
Non-convictions
Arrests, dismissed charges and other adverse items that did not end in conviction may not be reported more than seven years after they occurred, for positions paying under $75,000 a year. Bankruptcies carry a ten-year limit.
Convictions
The FCRA places no age limit on reported convictions. Most North Carolina employers set a seven- or ten-year policy window anyway, which is easier to defend under the EEOC guidance.
Higher-paid positions
For positions expected to pay $75,000 or more, the seven-year limit on non-convictions does not apply. The individualized-assessment principle still does.
Set the lookback in your written policy by position class, then order the same scope for every candidate in that class.
E-Verify is mandatory for North Carolina employers with 25 or more employees
Article 2 of Chapter 64 of the General Statutes requires every private employer with 25 or more employees to verify the work authorization of each new hire through E-Verify. The mandate phased in between 2012 and 2013 and applies today to any employer at or above the threshold.
Who is excluded
Section 64-25 defines an employee as one who provides services for wages, but excludes an individual whose term of employment is less than nine months in a calendar year, so short-season and temporary workers fall outside both the 25-employee count and the verification duty. Employers below 25 employees may enroll voluntarily.
Public employers and contractors
State agencies (§ 126-7.1), counties (§ 153A-99.1) and cities (§ 160A-169.1) must use E-Verify, and public contracts require contractor compliance under § 143-129(j) and § 143-133.3.
Enforcement
The North Carolina Commissioner of Labor investigates complaints under §§ 64-31 to 64-33. A first violation draws an order to file a sworn affidavit of E-Verify compliance within three business days, with a $10,000 penalty for failing to file it; a second violation adds a $1,000 civil penalty; a third or later violation costs $2,000 for each verification the employer failed to make.
How it fits your process
Form I-9 is still required for every hire. E-Verify runs after the I-9, within three business days of the start date.
Enrollment is free at e-verify.gov. Keep the case number with the I-9.
Drug testing, credit checks, salary history and social media
Drug testing
The Controlled Substance Examination Regulation Act, N.C. Gen. Stat. § 95-230 et seq., applies to every employer that tests. Samples must go to an approved laboratory with chain of custody, and any positive must be confirmed by gas chromatography-mass spectrometry or an equivalent method. Applicants may be screened on site with a single-use device, and a positive applicant screen must be confirmed by an approved laboratory unless the applicant signs a written waiver. The laboratory keeps a portion of every confirmed-positive sample for at least 90 days, and the examinee may have it retested at the examinee’s expense. The Department of Labor enforces, with penalties up to $250 per examinee.
Marijuana
North Carolina has no medical or adult-use marijuana law, so there is no employment protection for cannabis use. Hemp-derived THC products are legal and can produce positive results; confirmatory testing and a medical review officer help separate them.
Employment credit reports
No North Carolina statute limits employer credit checks. The FCRA steps apply, and the EEOC discourages credit screens that are not job related. Limit them to positions with financial responsibility, cash handling or signatory authority.
Salary history
No statewide ban for private employers. Executive Order 93 (2019) bars state agencies from asking about salary history. Pay decisions must still comply with the federal Equal Pay Act and Title VII.
Social media passwords
North Carolina has not enacted a social-media password law. Requesting personal credentials remains a poor practice: it exposes protected traits and can reach protected concerted activity under the National Labor Relations Act.
AI in hiring
No North Carolina statute regulates automated hiring tools. Title VII disparate-impact rules apply to any screen, automated or not, so test tools for adverse impact and keep a human decision-maker.
North Carolina industry-specific screening requirements
Healthcare and long-term care
Nursing homes, adult care homes and home care agencies must run criminal history checks on unlicensed direct-care staff under N.C. Gen. Stat. § 131E-265 and § 131D-40, and must check the Health Care Personnel Registry (§ 131E-256). Administered by the Department of Health and Human Services.
Child care
Child care providers and staff must clear a criminal background check, including fingerprints and a Responsible Individuals List check, under § 110-90.2. Administered by the DHHS Division of Child Development and Early Education.
Public schools
Local boards of education must adopt criminal history check policies for employees and applicants under § 115C-332, and the State Board of Education revokes educator licenses for listed convictions under § 115C-270.35.
Private security
Security guards, private investigators and armed guards are licensed by the Private Protective Services Board under Chapter 74C with fingerprint-based checks.
Transportation
CDL drivers follow FMCSA rules: the Drug and Alcohol Clearinghouse query, the 49 C.F.R. Part 40 panel and annual motor vehicle record reviews. North Carolina DMV records are available through the driving-records service.
Finance and insurance
Banks follow FDIC Section 19; broker-dealers follow FINRA Rule 3110; insurance producer applicants are fingerprinted for SBI and FBI checks by the Department of Insurance under § 58-33-48.
Screening services built for North Carolina employers
BCS Background Screening LLC runs FCRA-compliant searches for North Carolina employers of every size, with no setup fee and per-search pricing.
North Carolina county criminal court search
Real-time research at the district and superior courts in any of North Carolina’s 100 counties, with file date, disposition date and full sentencing on every record Order a North Carolina county court search.
County criminal court search
Direct research at the county courthouse, $18 plus any court fees, seven-year standard scope. This is the search that confirms a database hit before it reaches a report. County court search details.
Nationwide criminal database
$17 locator search of thousands of court, corrections, and registry sources with three name variations searched at once. Every hit is verified at the source before it is reported. Nationwide database search.
Motor vehicle records
State driving records for any position that drives on company business, with CDL and DOT-regulated roles supported. Motor vehicle records.
SSN trace and address history
Included at no extra cost in every search package: 10-plus years of reported address history to point criminal searches at the right counties. SSN trace.
Verifications
Employment, education, professional license, and reference verifications, plus employment credit reports for positions with financial responsibility, all ordered from the same account.
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Optional Multiple Authentication Factor (MAF) protection is available on every user account.
North Carolina employer compliance checklist
Twelve steps that keep a North Carolina screening program inside the FCRA, Chapter 64, the drug-testing act and Title VII.
- Use a stand-alone FCRA disclosure and a separate written authorization for every candidate.
- Enroll in E-Verify if you have 25 or more employees; run each new hire within three business days.
- Define the screening scope for each position class and apply it to every candidate in that class.
- Never ask about expunged records; check whether a reported dismissal has since been expunged.
- Accept certificates of relief and keep a copy with the hiring file.
- Run drug tests only through an approved laboratory with confirmatory testing and chain of custody.
- Do not act on an arrest without reviewing the underlying conduct, and keep non-convictions within seven years below $75,000.
- Send the pre-adverse action package, wait a reasonable period, then send the final adverse-action notice.
- Limit credit reports to positions with financial responsibility and document the reason.
- Order the county court search that confirms any database hit before it reaches a decision.
- Run an individualized assessment before declining a candidate for a record, and keep a dated note.
- Review any automated screening tool for disparate impact.
North Carolina background check laws: employer FAQs
Each answer names the statute, what it requires, and the agency that administers it.
Is E-Verify mandatory in North Carolina?
Yes, for private employers with 25 or more employees in North Carolina. N.C. Gen. Stat. §§ 64-25 and 64-26 require them to verify each new hire through E-Verify; individuals whose term of employment is less than nine months in a calendar year are excluded. State agencies, counties, cities and public contractors are covered by §§ 126-7.1, 153A-99.1, 160A-169.1 and 143-129(j). The North Carolina Commissioner of Labor investigates complaints: a first violation requires a sworn affidavit of compliance ($10,000 if not filed), a second adds a $1,000 penalty, and a third or later violation costs $2,000 per missed verification.
Does North Carolina have a ban-the-box law?
Not for private employers. Executive Order 158 (2020) removes the criminal-history question from state agency applications, administered by the Office of State Human Resources, and cities such as Durham, Charlotte and Asheville apply fair-chance policies to their own hiring. Private employers may ask at any stage, but Title VII, enforced by the EEOC, requires that criminal-record decisions be job related and consistent with business necessity.
How many years back can a North Carolina background check go?
North Carolina has no lookback statute, so the federal Fair Credit Reporting Act governs. Consumer reporting agencies may not report arrests and other non-convictions older than seven years for positions paying under $75,000; bankruptcies are limited to ten years; convictions carry no federal age limit. The Consumer Financial Protection Bureau and Federal Trade Commission enforce the FCRA.
Can a North Carolina employer ask about expunged records?
No. N.C. Gen. Stat. § 15A-153 bars employers from asking applicants to disclose expunged arrests, charges or convictions, and applicants may answer as though they never occurred. Dismissed charges and not-guilty verdicts are expunged automatically under § 15A-146(a4); the automatic process resumed July 1, 2024. Expunction orders are entered by the superior and district courts and processed by the Administrative Office of the Courts and the State Bureau of Investigation.
What are North Carolina’s drug-testing rules?
The Controlled Substance Examination Regulation Act, N.C. Gen. Stat. § 95-230 through § 95-235, requires employers that test to use an approved laboratory, maintain chain of custody, and confirm any positive by gas chromatography-mass spectrometry or an equivalent method. Applicants may be screened on site with a single-use device, with a positive confirmed by an approved laboratory unless the applicant signs a written waiver. The laboratory retains a portion of every confirmed-positive sample for at least 90 days, and the examinee may have it retested at his or her own expense. The North Carolina Department of Labor administers the act, with penalties up to $250 per examinee. North Carolina has no marijuana employment protection.
Are employment credit checks restricted in North Carolina?
No North Carolina statute restricts them. The federal FCRA applies: stand-alone disclosure, written authorization, pre-adverse action notice with a copy of the report and the Summary of Your Rights, and a final adverse-action notice, enforced by the Consumer Financial Protection Bureau and Federal Trade Commission. The EEOC treats non-job-related credit screens as a disparate-impact risk, so limit them to positions with financial responsibility.
What is a North Carolina certificate of relief?
A court order under N.C. Gen. Stat. §§ 15A-173.1 to 15A-173.6 that relieves certain collateral consequences of a conviction. An employer that relied on the certificate when hiring is protected from negligent-hiring liability arising from the certified conviction. Certificates are issued by the superior and district courts; ask the candidate for a copy and keep it with the file.
Can North Carolina employers ask about salary history?
Private employers may. Executive Order 93 (2019) bars state agencies from asking applicants about salary history or relying on it to set pay, administered by the Office of State Human Resources. Private employers must still comply with the federal Equal Pay Act and Title VII, enforced by the EEOC, so many set offers from the position’s pay range rather than prior pay.
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This page is general information for employers, not legal advice. BCS Background Screening LLC is a consumer reporting agency, not a law firm. North Carolina statutes, local ordinances, and agency guidance change; confirm current requirements with employment counsel before adopting or changing a screening policy. Rules described as current were reviewed in September 2026.