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 →North Carolina: Key Requirements
Scroll to view all requirements below.
Ban the Box / Fair Chance Hiring
North Carolina has no ban the box law for private employers. Employers may ask about criminal history on the initial job application. North Carolina's ban the box rule, set by executive order, reaches only state agencies under the Governor's authority, not private employers.
Criminal Record Lookback Period
North Carolina has no state law limiting how far back a criminal background check can go. Employers must follow the federal FCRA baseline.
Reporting Restrictions
North Carolina has not adopted a mini FCRA or other comprehensive state consumer reporting law. Employers must follow the federal FCRA baseline.
Expunged / Sealed Records
When a North Carolina court grants an expunction, the person is restored to the status they held before the arrest or charge, and the record is removed from official databases. An applicant need not disclose expunged charges or convictions and may answer questions as though they never occurred. A private employer may not deny an application solely because the applicant refused to disclose an expunged record, and an employer who violates this rule is subject to a fine by the North Carolina Commissioner of Labor. Employers may still ask about criminal charges or convictions that have not been expunged. A person who omits an expunged record is not guilty of perjury or making a false statement.
Salary History Ban
North Carolina does not have a salary history ban. Employers may ask applicants about their previous pay.
Credit Report Restrictions
North Carolina does not restrict an employer's use of consumer credit reports in hiring decisions.
Bankruptcies
North Carolina has no state law limiting the reporting of bankruptcies. Employers must follow the federal FCRA baseline.
Civil Judgments & Lawsuits
North Carolina has no state law limiting the reporting of civil judgments or lawsuits. Employers must follow the federal FCRA baseline.
Tax Liens & Collections
North Carolina 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
Marijuana is illegal in North Carolina for both recreational and medical use, so employers may test for it and take action on a positive result. North Carolina does, however, protect the lawful use of lawful products during nonworking hours and off the employer's premises, provided the use does not affect job performance or safety. Because hemp and hemp-derived THC are now lawful in the state, an employee's off-duty use of legal hemp products may fall within this protection, even though marijuana does not. North Carolina employers that conduct drug testing must follow the procedures in the Controlled Substance Examination Regulation Act.
Pre-Adverse Action Notice & Waiting Period
North Carolina has no state law setting a specific waiting period before taking adverse action. Employers must follow the federal FCRA baseline.
Adverse Action Notice Requirements
North Carolina has no state law adding to the federal adverse action notice process. Employers must follow the federal FCRA baseline.
Authorization Requirements
North Carolina has no state law governing background check authorization. Employers must follow the federal FCRA baseline.
Individualized Assessment
No statute. EEOC guidance under Title VII applies.
Drug Testing Procedures
North Carolina employers are not required to test for drugs, but any employer that does conduct employment-related drug testing must follow the Controlled Substance Examination Regulation Act. The Act sets procedures for sample collection, requires confirmation of a positive screening test through a second reliable method before the employer relies on it, and gives examinees the right to retain a portion of the sample for independent testing. It does not restrict who may be tested or when.
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
North Carolina has no local ordinances regulating criminal history inquiries by private employers. Many North Carolina cities and counties, including Durham, Charlotte, Asheville, and Wake County, have adopted ban the box policies, but each reaches only that jurisdiction's own government hiring or its contractors, not private employers generally.
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
North Carolina gives employers broad latitude in hiring. To stay compliant:
Do not require applicants to disclose expunged charges or convictions, and do not reject an applicant solely for declining to disclose them. Ask only about criminal charges and convictions that have not been expunged. Evaluate each conviction individually against the specific job rather than applying a blanket exclusion, consistent with EEOC guidance under Title VII. If you drug test, follow the Controlled Substance Examination Regulation Act, including confirmation of any positive screening result before acting on it. Do not take action against an employee for off-duty use of a lawful product, including legal hemp products, unless it affects job performance or safety. Follow the FCRA adverse action process: pre-adverse notice with a copy of the report and a summary of rights, a reasonable chance to respond, then a final notice.Non-compliance can result in civil penalties, damages, and legal liability under both state and local law.
Download the North Carolina Quick Reference Guide
Get a printable, one-page comparison of FCRA vs. North Carolina law.