Texas Employment Screening Laws for 2025: A Guide to Compliance

Hiring in Texas comes with specific legal responsibilities, especially when it comes to employment screening. As an employer, understanding Texas employment screening laws for 2025 is crucial to avoid costly lawsuits and ensure a fair hiring process.

This guide breaks down key regulations, including how far back criminal records can be used, while adhering to federal laws like the Fair Credit Reporting Act (FCRA) and Equal Employment Opportunity Commission (EEOC) guidelines.

Let’s dive in to help you stay compliant and make informed hiring decisions.

Overview of Texas Employment Screening Laws

Texas operates under an at-will employment framework, meaning employers have flexibility in hiring and firing. However, this doesn’t exempt businesses from following federal and local regulations. For instance, the Texas Workforce Commission provides guidance on using criminal histories in hiring decisions. Meanwhile, federal laws like the FCRA and EEOC guidelines set strict standards to prevent discrimination and ensure transparency.

Additionally, some Texas counties and cities, like Harris County, have enacted “Ban the Box” ordinances. These rules delay questions about criminal history until later in the hiring process, promoting fairness for applicants. To stay compliant, employers must balance these local rules with state and federal requirements.

For detailed guidance, visit the Texas Workforce Commission and the EEOC’s Enforcement Guidance.

How Far Back Can Criminal Records Be Used in Texas?

In Texas, employers can generally access Texas criminal conviction records indefinitely, as there’s no state-wide limit on how far back these records can be reported. However, the Texas Business and Commerce Code § 20.05 imposes a seven-year limit on reporting convictions for jobs with salaries under $75,000, unless an exception applies (e.g., positions in the insurance industry). This restriction aligns with the FCRA, which also limits reporting of certain non-conviction records, like arrests, to seven years.

That said, the EEOC advises caution. Employers should evaluate the nature, gravity, and recency of a criminal offense before declining an applicant. For example, a decades-old misdemeanor may not justify rejecting a candidate for a role unrelated to the offense. This “nature-time-nature” test helps ensure decisions are job-related and consistent with business necessity.

Moreover, Texas expunction law allows certain records, like dismissed charges or Class C misdemeanors with deferred adjudication, to be removed from background checks. Expunged records cannot be used in hiring decisions, and applicants aren’t required to disclose them. Learn more about expunction at Texas Code of Criminal Procedure § 55.01.

Texas follows the Texas Occupations Code §53.025, allowing employers to consider criminal records up to 7 years for most jobs. However, exceptions apply for:

• Jobs over $75k/year: No time limit (per FCRA §605)
• Healthcare/education roles: Full history review permitted
• Government positions: Tighter restrictions under Texas Government Code §411.0945

Companies providing in-home services or residential delivery must ensure that all employees or associates accessing customer residences undergo a criminal background check. This must be conducted through DPS or an approved private vendor, the company must verify the individual holds a license from an occupational agency that performed an equivalent check prior to licensure.

The background check must confirm no convictions or deferred adjudications within:

• 20 years for felonies, or
• 10 years for Class A/B misdemeanors,

for offenses against persons, families, property, or public indecency.

FCRA Compliance: Key Requirements for Employers

The Fair Credit Reporting Act (FCRA) governs how employers use background checks conducted by third-party consumer reporting agencies (CRAs). To comply, you must follow these steps:

• Provide Written Disclosure: Before running a background check, give applicants a clear, standalone written notice about the check.
• Obtain Consent: Get the applicant’s written permission before proceeding with the check.
• Follow Adverse Action Process: If you decide not to hire based on the report, send a pre-adverse action notice with a copy of the report and a summary of FCRA rights. After a reasonable period, issue a final adverse action notice.

Non-compliance can lead to lawsuits, as seen in cases where employers failed to provide proper notices. Check the FTC’s guide on FCRA compliance for more details.

EEOC Guidelines: Avoiding Discrimination in Hiring

The EEOC enforces Title VII of the Civil Rights Act, which prohibits discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information. When using criminal records, employers must avoid policies that disproportionately impact protected groups, such as minorities, unless the policy is job-related and consistent with business necessity.

For example, a blanket policy rejecting all applicants with criminal records is likely discriminatory. Instead, conduct an individualized assessment, considering:

• The nature and severity of the offense.
• How long ago it occurred.
• Its relevance to the job duties.

Applicants should also have a chance to explain their record before a final decision. This approach reduces the risk of EEOC claims and promotes fairness. See the EEOC’s guidance on criminal records for best practices.

Local Ban the Box Laws in Texas

While Texas doesn’t have a statewide Ban the Box law, cities like Austin and counties like Harris have their own versions. These ordinances prevent employers from asking about criminal history on initial job applications. Instead, inquiries are delayed until after a conditional offer or interview. This gives applicants a fair shot at being evaluated based on their qualifications first.

However, the Texas Regulatory Consistency Act (2023) limits local governments from enacting rules that exceed state law. Employers should consult legal counsel to confirm whether local Ban the Box laws apply. For more on local ordinances, check with your county’s regulations or the Texas Workforce Commission.