North Carolina Background Check Laws (2026 Guide)

Overview of North Carolina Background Check Laws

North Carolina permits employers, landlords, and licensing boards to conduct criminal background checks, but the process is governed by a combination of state statutes and federal law. The state does not impose a blanket restriction on private employer background checks, but several targeted protections exist for applicants and employees.

The North Carolina State Bureau of Investigation (SBI) serves as the central repository for criminal information in the state. The SBI maintains the Computerized Criminal History File, which receives fingerprint-based information from law enforcement agencies and links final disposition data provided by the courts.

Employers with specific statutory authority can request criminal history checks through the SBI. Others may use third-party consumer reporting agencies, which must comply with the Fair Credit Reporting Act (FCRA) enforced by the Federal Trade Commission.

Employment Background Checks in North Carolina

Private Employer Rules

North Carolina does not have a comprehensive state statute that restricts when or how private employers may conduct background checks. Private employers are generally free to ask about criminal history on job applications and to run criminal background checks at any point during the hiring process.

However, all employers who use a third-party consumer reporting agency must comply with the FCRA. This means they must obtain written consent from the applicant before running the check and must follow the adverse action process if they decide not to hire someone based on the results.

The EEOC also provides guidance that employers should not use blanket policies to exclude all applicants with criminal records, as this can disproportionately affect protected classes under Title VII of the Civil Rights Act of 1964.

State Government Employers and Ban the Box

Governor Roy Cooper signed Executive Order 158 on August 18, 2020, implementing fair chance hiring policies for North Carolina state agencies. Under this order, state agencies are prohibited from:

• Asking about criminal history on initial job applications
• Conducting criminal history checks on applicants until after the initial interview
• Using criminal history as an automatic disqualifier unless the information is directly relevant to the position

This policy took effect on November 1, 2020, and applies to all North Carolina state government agencies and departments. It does not apply to private employers, local governments, or positions where a criminal history check is required by law.

Local Ban the Box Ordinances

While North Carolina lacks a statewide ban the box law for private employers, several municipalities have adopted their own fair chance hiring policies for public sector employment:

• Durham: In February 2011, the City of Durham banned the box on city job applications and limited background checks to applicants who have received a conditional offer of employment.
• Charlotte: On February 28, 2014, Charlotte banned the box on city job applications.
• Cumberland County: Adopted fair chance hiring practices for county positions.
• Durham County: Implemented ban the box policies separate from the City of Durham.

These local ordinances apply to public sector positions within those jurisdictions. Private employers in these areas are not bound by the local policies unless a future state or local law specifically extends coverage to the private sector.

FCRA Requirements for Employers

The Fair Credit Reporting Act is a federal law that applies to all North Carolina employers who use consumer reporting agencies to conduct background checks. The FCRA imposes specific obligations at each stage of the process.

Before Running a Background Check

Employers must provide the applicant or employee with a clear, conspicuous written disclosure that a background check may be obtained. This disclosure must be a standalone document, not buried in an employment application. The applicant must provide written authorization before the employer can request the report.

The Adverse Action Process

If an employer intends to take adverse action (such as declining to hire, terminating, or denying a promotion) based on information in a background check, the FCRA requires a two-step process:

Step 1: Pre-Adverse Action Notice. Before making a final decision, the employer must send the applicant a copy of the consumer report and a copy of "A Summary of Your Rights Under the Fair Credit Reporting Act." This gives the applicant an opportunity to review the report and dispute any inaccurate information.

Step 2: Final Adverse Action Notice. After allowing a reasonable period (typically five business days), the employer may take the adverse action. The final notice must include the name, address, and phone number of the consumer reporting agency, a statement that the agency did not make the adverse decision, and notice of the applicant's right to obtain a free copy of the report and dispute its accuracy within 60 days.

Penalties for Non-Compliance

Employers who violate the FCRA may face lawsuits from affected individuals in state or federal court. The FTC and other federal agencies can also bring enforcement actions. Damages may include actual damages, statutory damages of $100 to $1,000 per violation, punitive damages, and attorney fees.

Lookback Periods and Reporting Limits

The Seven-Year Rule

North Carolina does not impose a state-level limit on how far back criminal convictions can be reported on a background check. Convictions may appear indefinitely.

However, the federal FCRA does impose limits on certain types of information when reported by consumer reporting agencies:

• Non-conviction records: Arrests that did not result in conviction cannot be reported after seven years.
• Civil judgments: Limited to seven years or the statute of limitations, whichever is longer.
• Tax liens: Paid tax liens are limited to seven years.
• Bankruptcies: Limited to ten years.

The seven-year FCRA limit on non-conviction records applies only when a third-party consumer reporting agency generates the report. If an employer conducts its own check through court records or the SBI (where statutorily authorized), the FCRA reporting limits do not apply.

Exception for Higher-Salary Positions

The FCRA seven-year limit on non-conviction adverse information does not apply to positions with an annual salary of $75,000 or more. For these positions, consumer reporting agencies may report non-conviction records beyond the seven-year window.

Expunction of Criminal Records

North Carolina uses the term "expunction" (interchangeable with "expungement") to describe the legal process of removing a criminal conviction or charge from a person's record. The North Carolina Judicial Branch provides forms and instructions for filing expunction petitions.

The Second Chance Act (2020)

The Second Chance Act (SB 562), signed by Governor Cooper on June 25, 2020, significantly expanded expunction eligibility in North Carolina. Key provisions include:

• Automatic expunction of charges that ended in not guilty verdicts, not responsible findings, or dismissals on or after December 1, 2021.
• Elimination of the felony conviction disqualifier for expunction of dismissed charges and not guilty verdicts.
• Expanded eligibility for people with juvenile convictions, nonviolent felony convictions, and nonviolent misdemeanor convictions.

In the first nine months of operation, approximately 400,000 charges were automatically expunged under this law.

2024 Amendments (SB 565)

The automatic expunction program was temporarily paused due to technical and implementation issues. On July 8, 2024, Governor Cooper signed SB 565 (Session Law 2024-35), which restarted and improved the program. Key changes include:

• Extended the waiting period between disposition and automatic expunction to no less than 180 days and no more than 210 days.
• Gave the Administrative Office of the Courts one year to process the backlog of over one million eligible cases.
• Required that expunged records be retained as confidential files by the AOC and clerks of superior court, accessible only to attorneys representing clients with expunged records and district attorneys.

Waiting Periods by Offense Type

Under G.S. 15A-145.5, the waiting periods for petition-based expunction depend on the type and number of offenses:

• Single nonviolent misdemeanor: 1 year after the date of conviction.
• Multiple nonviolent misdemeanors: 7 years after the date of the last conviction.
• One nonviolent felony: 10 years after the date of conviction or completion of any active sentence, probation, or post-release supervision, whichever is later.
• Two or three nonviolent felonies: 20 years after the date of the most recent conviction or completion of sentence, whichever is later.

If multiple convictions occur in the same session of court, they are treated as a single conviction for expunction purposes.

Filing Fees

There is generally a $175 filing fee to petition for expunction. Certain categories are fee-exempt, including expunction of charges that were dismissed or resulted in a not guilty verdict (unless the dismissal resulted from a diversion program or deferred prosecution agreement).

Effect of Expunction

Once an expunction is granted, the person may legally deny that the arrest, charge, or conviction occurred without being subject to perjury charges. However, an expunction may not prevent the record from being considered in federal immigration proceedings.

Housing Background Checks

Tenant Screening Laws

North Carolina permits landlords to conduct criminal background checks on prospective tenants. Under the FCRA, landlords must obtain written consent before running credit or background checks, and they must inform tenants of their rights under the FCRA, including the right to dispute inaccurate information.

The North Carolina Real Estate Commission advises that application fees must reflect the actual cost of screening. The North Carolina Rental Application Fee Act limits application fees to the actual cost of the screening process.

Fair Housing Considerations

Landlords should follow HUD guidance on using criminal background checks fairly. Blanket policies that deny all applicants with any criminal history may violate the Fair Housing Act if they have a disparate impact on protected classes. HUD recommends:

• Assessing each applicant on a case-by-case basis
• Considering the nature, severity, and recency of the criminal conduct
• Allowing applicants to explain their circumstances
• Avoiding policies that automatically exclude applicants based on arrest records alone

North Carolina's Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, physical or mental disabilities, sexual orientation, and gender identity.

Professional and Occupational Licensing

Protections Under G.S. 93B-8.1

North Carolina provides significant protections for applicants seeking professional or occupational licenses. Under G.S. 93B-8.1, occupational licensing boards:

• Cannot automatically deny licensure based on criminal history.
• Cannot deny a license solely because a conviction involves a "crime of moral turpitude."
• May deny a license only if the criminal conviction is directly related to the duties and responsibilities of the licensed occupation, or the conviction is for a crime that is violent or sexual in nature.

Applicant Rights in the Licensing Process

If a board identifies potential issues with an applicant's criminal history, it must:

1. Notify the applicant in writing of the specific concerns.
2. Allow 30 days for the applicant to correct any inaccuracies or submit evidence of mitigation or rehabilitation.
3. Provide written findings specifying the factors and reasons if the license is denied.

Predetermination Petitions

Individuals with criminal histories can file a predetermination petition with a licensing board before completing their education or training requirements. This allows prospective applicants to learn whether their criminal record is likely to prevent licensure before investing time and money in the required education. The board must apply the same standards used in the full application review.

No applicant may be restricted from reapplying for licensure for more than two years from the date of their most recent application.

SBI Background Check Process

The North Carolina State Bureau of Investigation offers several types of background checks:

For Employers and Licensing Entities

Employers and licensing boards with specific statutory authority may request fingerprint-based criminal history checks through the SBI. The employer/licensing entity process requires submitting fingerprints and applicable fees according to the rules for each type of check.

For Individuals (Personal Review)

Any person may request a copy of their own criminal history record through the SBI's personal review process. This allows individuals to review their records for accuracy and initiate corrections if needed. The SBI also provides a Right to Review process for challenging inaccurate records.

Frequently Asked Questions

Sources and References