Federal Law (FCRA)
The Fair Credit Reporting Act (FCRA) establishes the federal minimum requirements for employment background checks, including disclosure and authorization requirements, consumer rights, and the adverse action process. Many states impose additional requirements that employers must also follow.
Read FCRA Overview →Colorado: Key Requirements
Scroll to view all requirements below.
Ban the Box / Fair Chance Hiring
Private employers with eleven or more employees have been prohibited from asking about criminal history on an initial job application since September 1, 2019. As of September 1, 2021, this prohibition applies to all private employers regardless of size. Employers cannot state in a job advertisement or application that people with a criminal history may not apply. Inquiries into criminal history are permitted after a conditional offer of employment or after the applicant has been selected for an interview.
Criminal Record Lookback Period
A consumer reporting agency cannot include an arrest, indictment, or conviction it predates the report by more than 7 years, from the date of disposition, release, or parole.
*This 7-year cap does not apply to a report used in connection with employment at an annual salary of $75,000 or more.
Reporting Restrictions
A consumer reporting agency cannot include sealed records, expunged records, or records that did not result in a conviction in a consumer report at all, regardless of how old the record is. *This restriction does not apply to a report used in connection with employment at an annual salary of $75,000 or more.
Expunged / Sealed Records
Once a criminal record is sealed, employers cannot require an applicant to disclose any information contained in it, on an application, in an interview, or in any other way. An applicant may truthfully state that they have not been criminally convicted, and an application cannot be denied solely because the applicant refused to disclose sealed record information.
Salary History Ban
Employers cannot seek a prospective employee's wage rate history, rely on wage rate history to set a wage rate, or discriminate or retaliate against a prospective employee for declining to disclose their wage history.
Credit Report Restrictions
Employers with 4 or more employees cannot use consumer credit information for employment purposes unless the information is substantially related to the job. Exceptions include positions with banks or financial institutions, roles involving national security or defense contracts, executive or management positions with fiduciary responsibility, and positions with access to trade secrets or confidential financial information. If an employer relies on credit information to take adverse action, it must disclose that fact to the applicant or employee in writing.
Bankruptcies
A consumer reporting agency cannot include a bankruptcy in a consumer report if it predates the report by more than 10 years from the date of the order for relief or adjudication.
Civil Judgments & Lawsuits
Suits and judgments cannot be reported if they predate the report by more than 7 years from the date of entry, or by more than the applicable statute of limitations, whichever period is longer.
Tax Liens & Collections
Paid tax liens and accounts placed for collection or charged to profit and loss cannot be reported if they predate the report by more than 7 years.
Marijuana / Drug Testing Protections
Colorado's Lawful Off-Duty Activities Statute generally prohibits employers from firing an employee for engaging in a lawful activity off the employer's premises during nonworking hours. In Coats v. Dish Network (2015), the Colorado Supreme Court held that this protection does not extend to marijuana use, including medical marijuana, because marijuana remains illegal under federal law. Employers may lawfully enforce zero tolerance drug policies and take adverse action against employees who test positive for marijuana, even if the use was off duty and lawful under state law. This ruling remains in effect.
Pre-Adverse Action Notice & Waiting Period
No Colorado statute. The federal FCRA baseline applies, requiring a pre-adverse action notice and a reasonable waiting period before final adverse action based on a consumer report.
Adverse Action Notice Requirements
When an employer relies on consumer credit information to take adverse action, such as refusing to hire, demoting, or terminating, it must disclose that fact to the affected applicant or employee in writing. Beyond this credit-specific requirement, general adverse action notices for background checks follow the federal FCRA baseline.
Authorization Requirements
No Colorado statute beyond the federal FCRA baseline, which requires a clear and conspicuous written disclosure and the applicant's written authorization before procuring a consumer report for employment purposes.
Individualized Assessment
No statute. EEOC guidance under Title VII applies.
Childcare & At-Risk Adult Care Screening
Owners, employees, and adult residents of licensed child care facilities and family child care homes must undergo a fingerprint-based criminal history record check, along with a review of state child abuse and neglect records. A separate fingerprint-based background check requirement applies to individuals employed or appointed to positions providing direct care to at-risk adults.
Unless otherwise noted, the information on this page applies to private sector employment. Government employers and certain regulated industries may be subject to additional or different requirements.
Local Ordinances That May Apply
Click a jurisdiction below to view full details.
No Local Ordinances
No Colorado city or county has enacted any ordinance for private employers. Denver, Aurora, and Boulder are sometimes cited in secondary sources as having Fair Chance Hiring ordinances, but no such ordinances exists in the Denver Municipal Code, Aurora Municipal Code, or Boulder Municipal Code. Employers throughout Colorado are subject only to the statewide Chance to Compete Act.
This list reflects known local ordinances at the time of publication and may not be exhaustive. Employers should confirm requirements for every city or county where they hire.
What This Means for Employers
Colorado layers ban the box, salary history, and credit reporting protections on top of a distinct marijuana rule. To stay compliant:
Remove criminal history questions from initial job applications and job postings Delay any criminal history inquiry until after an interview or a conditional job offer Do not seek or rely on an applicant's salary or wage history Do not require an applicant to disclose sealed or expunged criminal records Use consumer credit information only when it is substantially related to the job, and disclose in writing if credit information is used to take adverse action Run the required fingerprint based background check for any childcare or at risk adult care position Provide FCRA pre-adverse and final adverse action notices before rejecting an applicant based on a background report Marijuana use, including off duty and medically licensed use, may still be grounds for adverse action under a documented drug policyNon-compliance can result in civil penalties, damages, and legal liability under both state and local law.
Download the Colorado Quick Reference Guide
Get a printable, one-page comparison of FCRA vs. Colorado law.