What You Need to Know About Employee Background Checks in North Carolina
In North Carolina, the hiring process routinely includes background checks. Here’s everything you need to know about North Carolina employee background checks.
Both public and private North Carolina employers can conduct background checks on all potential job candidates. However, federal and state laws protect certain employee information from background checks and require some employers to check employee criminal history.
Does North Carolina Allow Employee Background Checks?
Yes, North Carolina allows all public and private employers to check potential employees’ backgrounds before making hiring decisions. Many employee background checks in North Carolina include criminal history, work history, identification verification, and employment eligibility.
While in most cases, North Carolina allows background checks, federal, state, and local laws govern how employers conduct checks and what they can uncover.
Federal Employee Background Check Laws
The Fair Credit Reporting Act (FCRA) is a federal law governing the use of background checks. The Federal Trade Commission (FTC) enforces the FCRA, which applies to all North Carolina employers.
The FCRA protects job candidates by requiring employers to obtain their consent before conducting a background check. A North Carolina employer must provide employees with a disclosure form to ensure they consent to a background check.
Related: Can a Criminal Record Affect Employment in North Carolina?
In addition, the FCRA requires North Carolina employers to notify employees when they make a hiring decision based on negative background check information. The employee then has the opportunity to dispute the results. If an employee contests a background check result, the FCRA requires the employer to investigate the disputed information.
North Carolina Employee Background Check Laws
North Carolina regulates employment background checks. State law requires certain employers to conduct criminal background checks, such as county programs and mental health providers, developmental disability providers, and substance abuse services.
This law ensures employees in a position of power do not have a criminal history. State laws regarding expunged and sealed records still apply to these employers.
In 2020, North Carolina Governor Roy Cooper signed Executive Order No. 158 (EO 158). EO 158 expands employment opportunities for individuals with a criminal background.
This executive order prevents North Carolina state agencies from conducting a background check during the initial hiring stages or asking questions about criminal history on a job application. State agencies must grant job candidates an interview before conducting a background check. This rule allows qualified applicants to shine in an interview and potentially convince a state employer their merits outweigh any criminal background.
North Carolina Expunged and Sealed Records
North Carolina prohibits employers from accessing expunged criminal records, sealed juvenile records, dropped charges, or charges with innocent verdicts. Expungement is a process in which an individual applies to hide their criminal record. A North Carolina judge then decides whether to grant the expungement. Neither private nor public employers can access expunged records or hold them against employees.
When a minor commits a crime, North Carolina typically seals it when the individual reaches adulthood. Employers cannot uncover sealed juvenile records in background checks.
If an individual is arrested, charged, or acquitted of a crime, a North Carolina employer cannot use this information to make a hiring decision. Nevertheless, North Carolina employers may consider pending charges during the hiring process.
Related: North Carolina Employee Monitoring Laws
North Carolina Background Check Time Length
Some states impose a seven-year retrospective limit for employee background checks. In these states, background checks cannot uncover charges from more than seven years prior.
North Carolina does not have a retrospective limit. As a result, a North Carolina employee background check can reveal any criminal convictions except expunged and sealed convictions.
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