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 OverviewNew Jersey: Key Requirements
Scroll to view all requirements below.
Ban the Box / Fair Chance Hiring
New Jersey's Opportunity to Compete Act bars employers with 15 or more employees from asking about an applicant's criminal record before completing the first interview, whether on the application, in a job advertisement, or otherwise. After the first interview, the employer may ask about and consider criminal history, though it may not rely on an expunged or pardoned record.
*The 15 employee threshold leaves smaller New Jersey employers outside the timing restriction, though they remain bound by the expunged and pardoned record limits.
Criminal Record Lookback Period
New Jersey has no state law limiting how far back a criminal background check can go. Employers must follow the federal FCRA baseline.
Reporting Restrictions
New Jersey has adopted its own Fair Credit Reporting Act, which applies alongside the federal FCRA. It does not limit how far back adverse information may be reported, so those limits follow the federal baseline. It does set conditions on furnishing a report for employment purposes, including a certification from the employer that the report will not be used in violation of equal employment opportunity law, and it gives applicants a 2 year window to learn who obtained a report about them for employment.
Expunged / Sealed Records
When a New Jersey court grants an expungement, the arrest, conviction, and any related proceedings are deemed not to have occurred, and the person may answer questions about them accordingly, including on a job application. New Jersey's Clean Slate law allows eligible individuals to clear their entire record, by petition after 10 years from their most recent conviction, and through an automated process for qualifying records. Expunged records are removed from public access and background check databases. The Opportunity to Compete Act separately bars employers from relying on an expunged or pardoned record. Limited exceptions require disclosure for certain law enforcement and judicial positions.
Sex Offender Registry Use & Restrictions
New Jersey permits employers to use publicly available sex offender registry information for employment purposes.
*CRA reporting remains subject to applicable criminal record reporting restrictions.
Salary History Ban
New Jersey prohibits employers from screening applicants on salary history or requiring that it meet any threshold, and an applicant's refusal to provide it may not be held against them. If an applicant volunteers salary history unprompted, the employer may verify and consider it. After an offer that explains the full compensation package, the employer may verify salary history in writing. Penalties run from $1,000 for a first violation to $10,000 for later ones.
*A multistate employer whose application is used in New Jersey and at least one other state may include a salary history question if it tells New Jersey applicants not to answer.
Credit Report Restrictions
New Jersey does not restrict an employer's use of consumer credit reports in hiring decisions.
Bankruptcies
New Jersey has no state law limiting the reporting of bankruptcies. Employers must follow the federal FCRA baseline.
Civil Judgments & Lawsuits
New Jersey has no state law limiting the reporting of civil judgments or lawsuits. Employers must follow the federal FCRA baseline.
Tax Liens & Collections
New Jersey has no state law limiting the reporting of paid tax liens or collection accounts. Employers must follow the federal FCRA baseline.
Marijuana / Drug Testing Protections
Recreational and medical cannabis are legal in New Jersey, and the CREAMM Act gives strong protection. Employers may not refuse to hire, discharge, or act against a person for off-duty cannabis use, or act solely on the presence of cannabis metabolites in a test. Employers may still bar use and possession at work and test at pre-employment, on reasonable suspicion, after an accident, or randomly. To discipline for impairment, the statute contemplates both a test and an evaluation by a certified Workplace Impairment Recognition Expert. The Cannabis Regulatory Commission enforces the Act, which courts have held creates no private right of action.
Pre-Adverse Action Notice & Waiting Period
New Jersey requires an employer to provide a copy of the report and a written description of the applicant's rights before taking adverse action, but sets no specific waiting period between that notice and the final decision. Timing follows the federal FCRA baseline.
Adverse Action Notice Requirements
Before taking adverse action based in whole or in part on a consumer report, an employer must give the applicant a copy of the report and a written description of the applicant's rights under both the New Jersey Fair Credit Reporting Act and the federal FCRA. The federal summary of rights alone does not satisfy this requirement.
Authorization Requirements
Before procuring a consumer report for employment purposes, an employer must give the applicant a clear and conspicuous written disclosure in a document that consists solely of that disclosure, and must obtain the applicant's written authorization. A consumer reporting agency may not furnish an employment report containing medical information unless the applicant consents in writing.
Individualized Assessment
No statute. EEOC guidance under Title VII applies. New Jersey's Opportunity to Compete Act regulates only the timing of criminal history inquiries and does not impose an individualized assessment requirement, though the New Jersey Law Against Discrimination creates disparate impact exposure that leads many employers to conduct one anyway.
Pay and Benefit Transparency
Effective June 1, 2025, New Jersey employers with 10 or more employees must disclose the hourly wage or salary, or a range, along with a general description of benefits and other compensation, in every posting for a new job or a transfer opportunity. Employers must also make reasonable efforts to notify current employees of promotional opportunities before making a promotion decision. The law applies to employers that do business, employ people, or take applications in New Jersey. Penalties run up to $300 for a first violation and $600 for later violations.
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
New Jersey has no local ordinances that apply to private employers. Newark, Jersey City, and Atlantic City previously adopted ban the box ordinances, but the statewide Opportunity to Compete Act preempted all municipal and county criminal history employment rules as of March 1, 2015.
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
New Jersey is one of the most heavily regulated states for hiring. To stay compliant:
Confirm permissible purpose, provide a standalone disclosure, and obtain written authorization before running a background check. Remove all criminal history questions from your job application and from any job advertisement. Remove salary history questions from your application and interview scripts, and instruct any background check vendor not to return salary history. Add pay, benefits, and compensation information to every job and transfer posting if you have 10 or more employees. Wait until after the first interview to ask about criminal history if you have 15 or more employees. Verify salary history only after an offer that explains the full compensation package, and only with written authorization. Exclude any expunged or pardoned record from consideration entirely. Evaluate each conviction individually against the specific job rather than applying a blanket exclusion, consistent with EEOC guidance and New Jersey Law Against Discrimination exposure. Do not take adverse action based solely on a positive cannabis test, and use a Workplace Impairment Recognition Expert evaluation alongside any test before acting on suspected impairment. Before taking adverse action, give the applicant a copy of the report and a written description of their rights under both the New Jersey Fair Credit Reporting Act and the federal FCRA, allow a reasonable chance to respond, then send a final notice.Non-compliance can result in civil penalties, damages, and legal liability under both state and local law.
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