Tennessee Employment Background Screening Laws in 2025
Navigating Tennessee’s employment background screening laws in 2025 is crucial for employers. Compliance ensures fair hiring and avoids lawsuits.
This guide covers criminal history lookback periods, ban-the-box laws, credit report restrictions, AI usage, and relevant case law.
All information aligns with official government sources for trustworthiness.
Criminal Offenses Look-Back Period
The FCRA generally sets a seven-year look-back period. This applies to most adverse information on background checks. However, criminal convictions are an exception. The FCRA does not restrict reporting for convictions, regardless of age. Yet, some states may impose their own limits. For instance, several states have a seven or ten-year limit on convictions.
Tennessee, for private employers, does not have a specific state law limiting the look-back period for convictions.
Therefore, federal FCRA guidelines primarily govern. If a position pays $75,000 or more, the seven-year limit on non-conviction adverse information does not apply.
Official Government Reference Sources
Many laws govern background checks in Tennessee. These include federal acts like the Fair Credit Reporting Act (FCRA). The FCRA dictates how consumer information is handled. It protects applicant privacy rights. State laws, like those related to specific professions, also apply. Employers should consult official sources for accuracy. These include the Tennessee Bureau of Investigation (TBI) and the FTC.
Ban-the-Box Laws in Tennessee
Tennessee’s ban-the-box law, enacted via Senate Bill 2440 in 2016, applies to public sector employers. It prohibits criminal history questions on initial job applications. Employers must delay inquiries until later in the hiring process. This ensures fair opportunities for applicants with criminal records. Individual assessments, following EEOC guidelines, are required. Applicants can explain their history and provide rehabilitation evidence.
Municipal Ban-the-Box Laws
Several Tennessee municipalities have adopted ban-the-box policies for public sector jobs:
- Chattanooga: Criminal history inquiries delayed until after initial application (2015).
- Memphis: Public employers follow ban-the-box for fair hiring practices.
- Nashville: Metro Civil Service Commission removed criminal history questions (2015).
- Hamilton County: Bans criminal history questions on initial applications.
- Shelby County: Prioritizes qualifications before criminal checks.
Private employers face no such restrictions, but local ordinances may vary. Always check jurisdiction-specific rules.
Credit Report Restrictions
Tennessee restricts credit checks for most positions. Employers must show direct relevance.
Permitted only for:
- Financial institutions
- Law enforcement roles
- Positions with fiduciary authority
- Roles handling confidential data
Written consent is mandatory before pulling reports. Adverse actions require pre-notice.
Use of AI for Employment Background Checks
The use of Artificial Intelligence (AI) in employment is an emerging area. While no specific Tennessee law directly addresses AI in background checks for private employers, federal guidelines apply.
Employers using AI must ensure non-discrimination. The Equal Employment Opportunity Commission (EEOC) scrutinizes AI use. Systems must not create disparate impact or treatment. Employers should carefully vet AI tools. They must ensure compliance with civil rights laws. This includes Title VII of the Civil Rights Act. AI tools should be transparent. Bias in algorithms must be avoided. The goal is fair hiring practices.
Currently, legislative discussions around AI in employment are ongoing at various levels. Businesses should anticipate future regulations. Stay informed about developments in this area.
Summary
- Public sector employers follow ban-the-box rules, delaying criminal history inquiries. Municipalities like Nashville and Memphis extend these protections.
- Restrictions exist on credit report use.
- The look-back period for criminal offenses generally follows FCRA guidelines. However, convictions have no FCRA time limit.
- AI use in screening is an evolving area. Employers must ensure fair and non-discriminatory practices.
- Proper adverse action procedures are critical.
- Tennessee Code § 50-1-108 (2025) prohibits employers from requiring employees or prospective employees to sign a non-disclosure agreement (NDA) regarding sexual harassment in the workplace as a condition of employment.
- Staying updated on legislative changes is essential.
Tennessee Employment Screening
- SSN Trace, Names, Aliases & Address history
- Nationwide Criminal Database Search based on user input
- National Sex Offenders based on user input
- USA/SDN/OFAC Patriot Act databases based on user input
- Federal USDC Criminal Search based on user input
- (1) County Court Criminal Search based on user input
- 24 Hours turnaround or less
Case Law Snippets on Hiring and Firing Lawsuits
Litigation involving background checks can be complex. Employers face various legal challenges. Many lawsuits stem from FCRA violations. These often involve inadequate notice or improper adverse action procedures.
Furthermore, Title VII claims can arise. This happens when background checks lead to discriminatory hiring. Employers must demonstrate business necessity. They must also ensure job-relatedness when using criminal records.
An individualized assessment is recommended for applicants with criminal histories. This helps mitigate discrimination claims.
The following snippets highlight recent legal developments.
TransUnion LLC v. Ramirez (2021): The U.S. Supreme Court held that FCRA class action members must suffer concrete harm. This is necessary to collect individual damages. This case impacts how FCRA violations are litigated. It clarifies standing requirements for plaintiffs.
Source: Hunton Andrews Kurth LLP
Tennessee Supreme Court on Retaliatory Discharge (March 26, 2025): The Tennessee Supreme Court ruled on retaliatory discharge. It held that Tennessee law does not prohibit a private employer from firing an employee. This applies even for exercising the right to petition the government. The “right to petition” under the Tennessee Constitution applies to government actions only. It does not constrain private parties. This case clarifies employer liability in specific retaliatory discharge claims.
Source: Tennessee Courts Newsroom
Tennessee Employment Background Check FAQs for Employers
1. What are the primary laws governing background checks for private employers in Tennessee?
While Tennessee does not have a state-specific “mini-FCRA” that mirrors federal law for private employers, your primary compliance obligation comes from the federal Fair Credit Reporting Act (FCRA). This law regulates how consumer reporting agencies (CRAs) collect and report information and how employers use that information.
Key FCRA requirements include:
- Notice and Consent: You must provide a clear, written, standalone disclosure to the applicant that you may conduct a background check and obtain their written authorization before doing so.
- Adverse Action Process: If you intend to take adverse action (e.g., not hiring) based on the report, you must follow a two-step process: provide a pre-adverse action notice with a copy of the report and “A Summary of Your Rights Under the FCRA,” followed by a final adverse action notice.
Governing Statute: The Fair Credit Reporting Act (FCRA)
Brief Description: A federal law that promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies (CRAs). It dictates the responsibilities of those who furnish and use consumer reports for employment purposes.
Administering Agencies: The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB).
2. How far back can a background check look at criminal history in Tennessee?
This is a two-part answer. First, the federal FCRA sets the baseline. For jobs paying less than $75,000 per year, the FCRA prohibits CRAs from reporting non-conviction records (like arrests that did not lead to a conviction) that are more than seven years old. However, the FCRA does not place a time limit on reporting criminal convictions.
Second, Tennessee law provides guidance that many employers follow as a best practice. While not a direct reporting law like the FCRA, Tennessee’s rules of evidence suggest a time limit for using past convictions to impeach a witness’s credibility. This is often interpreted as a reasonable standard for employers to avoid discrimination claims.
Governing Statute: Tennessee Code Annotated § 24-1-201
Brief Description: This statute, part of the Tennessee Rules of Evidence, generally makes a criminal conviction inadmissible in a civil court proceeding if more than ten years have elapsed since the date of conviction or the date of release from confinement, whichever is later. Employers often adopt this 10-year lookback period for convictions as a best practice.
Administering Entity: The Tennessee court system interprets and applies this rule of evidence. It is not administered by a regulatory agency in the employment context.
3. Does Tennessee have a “Ban the Box” law for employers?
Yes, but it applies only to state government employment, not to private employers. The law prohibits state agencies from asking about an applicant’s criminal history on the initial application form. State agencies can only inquire about criminal records after an applicant has been selected as a finalist for the position.
Private employers in Tennessee are not legally required to “ban the box” and may ask about criminal history on the initial job application. However, it is a best practice recommended by the EEOC to delay the inquiry until later in the hiring process to avoid potential discrimination claims.
Governing Statute: Tennessee Code Annotated § 8-50-111
Brief Description: This statute prohibits the state, as an employer, from including a question about criminal convictions on an initial application for employment. It does not apply to private companies or local governments.
Administering Entity: The Tennessee Department of Human Resources (DOHR) oversees compliance for state government hiring.
4. How can I obtain and use an applicant’s driving record (MVR) in Tennessee?
You can obtain a Motor Vehicle Record (MVR) for employment purposes, such as for positions that require driving. If you use a third-party CRA to obtain the MVR, you must comply with all FCRA requirements, including getting the applicant’s written consent on a standalone disclosure form.
The release of these records is governed by state law to protect driver privacy. You must have a permissible purpose, such as for employment, and the applicant’s consent to access their record.
Governing Statute: Tennessee Code Annotated § 55-50-311 (related to the federal Driver’s Privacy Protection Act)
Brief Description: This law governs the confidentiality and release of records maintained by the Department of Safety. It outlines permissible uses for MVRs, including for employment purposes where driving is a required duty, provided proper consent is obtained.
Administering Agency: The Tennessee Department of Safety and Homeland Security.
5. What happens if an applicant has an expunged criminal record?
Under Tennessee law, once a criminal record has been legally expunged, it is treated as if it never occurred. The individual is not required to disclose the expunged offense on a job application. Furthermore, a standard background check run by a CRA should not report an expunged record.
Basing an adverse employment decision on an expunged record that you learn about through other means could expose your company to legal risk. It is a best practice to instruct your background check provider to not report expunged records and to disregard any such information if it is discovered.
Governing Statute: Tennessee Code Annotated § 40-32-101
Brief Description: This statute outlines the process and legal effect of expungement in Tennessee. It restores the individual “to the status the person occupied before the arrest or indictment or information.” This means they can legally deny the existence of the record.
Administering Entity: The Tennessee Bureau of Investigation (TBI) maintains the state’s central criminal history repository and processes expungement orders from the courts.