North Carolina Employment Screening Overview
North Carolina is moderately employer-friendly for background screening, with key restrictions applying mainly to public employers through executive orders covering ban-the-box and salary history inquiries, while private employers face fewer state-level constraints.
Private employers must follow the state's drug testing law (CSERA), which requires approved laboratories, confirmation testing, and employee notification procedures, and larger employers (25+ employees) must use E-Verify. Federal requirements and local ordinances in cities like Durham may impose additional obligations.
What's Permitted
- Private employers with 25+ employees must use E-Verify for new hires
- Drug testing permitted; approved labs required for current employee screening
- No statewide salary history ban for private employers
- No state law restricting credit checks for private employer hiring decisions
What's Prohibited
- Inquiring about expunged arrests, charges, or convictions on applications or in interviews
- Requiring state agency applicants to disclose criminal history before initial interview
- Using non-approved laboratories for employee drug screening tests statewide
- Failing to use E-Verify for employers with 25+ employees in North Carolina
Ban the Box Laws
Public Employers OnlyStatus Summary
North Carolina lacks a statewide private-employer ban-the-box law. Executive Order 158 covers executive-branch agencies, delaying inquiries until after completion of the initial interview. S.B. 416 wasn’t enacted. Some local governments (e.g., Durham) have ordinances. Executive Order 158 S.B. 416 Durham
Key Requirements
Executive Order 158 (2020)
State executive-branch agencies must delay criminal-history inquiries: (https://governor.nc.gov/documents/files/executive-...
- Applies to executive-branch state agencies.
- Remove criminal-history questions from applications.
- Inquiry only after initial interview completion.
- Do not consider pardoned or expunged records.
- OSHR enforces EO compliance and FAQs.
Executive Order 278 (2023)
Reinforces EO158 emphasis on skills-based hiring: (https://governor.nc.gov/news/press-releases/2023/0...
- Reinforces EO158 hiring changes.
- Emphasizes skills and experience.
- Targets executive-branch hiring practices.
- Issued March 2023 by Governor.
Senate Bill 416 (S.B. 416, 2021 — proposed)
Proposed public-employer ban-the-box framework (not enacted): (https://www.ncleg.gov/Sessions/2021/Bills/Senate/P...
- Applies to state and local public employers.
- Requires conditional offer before criminal inquiry.
- Arrests without convictions excluded from disqualification.
- Seven-factor substantial-relationship analysis required.
- OSHR to collect compliance data and reports.
N.C. Gen. Stat. §122C‑80 (healthcare providers)
Statute mandates background checks for certain healthcare hires: (https://www.ncleg.gov)
- Requires criminal checks for certain healthcare positions.
- Checks occur within five business days.
- Employers must consider specified evaluation factors.
- Does not exempt applicants based on convictions.
County and City Ordinances
Several local jurisdictions have adopted ban-the-box rules: (Durham example: https://www.durhamnc.gov/DocumentCenter/View/32853...
- Multiple counties adopted local ban-the-box.
- City of Durham ordinance enacted 2011.
- Local rules vary by jurisdiction.
- County-level enforcement varies locally.
Private Employer Coverage (statewide)
No statewide ban-the-box law applies to private employers: (EEOC guidance: https://www.eeoc.gov/laws/guidance/enforcement-gui...
- No comprehensive state law for private employers.
- Private employers subject to local ordinances.
- Must follow EEOC individualized-assessment guidance.
- FCRA requirements apply to background checks.
Ban the Box Best Practices for North Carolina Employers
- Remove criminal-history questions from initial applications (state agencies)
- Delay criminal-history inquiries until after initial interview completion
- Exclude pardoned, expunged, acquitted, or non-conviction arrests
- Use individualized assessments of convictions' relevance to role
- Comply with FCRA; check local laws and health-care exceptions
Salary History Ban
Public Employers OnlyExecutive Order No. 93
Prohibits salary-history use by executive agencies:
- Applies only to executive branch agencies.
- Forbids requesting applicants' salary history.
- Forbids using prior salary to set pay.
- OSHR must remove salary fields.
- Does not bind local or private employers.
Sources: Executive Order No. 93 (Governor) — https://governor.nc.gov/documents/executive-order-... ; OSHR EO93 page — https://oshr.nc.gov/eo93-prohibiting-use-salary-hi...
Senate Bill 494 (2023)
Legislative proposal to ban salary history:
- Introduced in 2023 General Assembly.
- Would codify ban for state hiring.
- Referred to committee; no enactment.
- Did not become law.
Source: SB 494 (2023 PDF) — https://www.ncleg.gov/Sessions/2023/Bills/Senate/P...
House Bill 339 (2025)
Proposed equal-pay legislation with related measures:
- Focuses on equal pay provisions.
- Does not specifically ban salary history.
- Passed some readings; not enacted.
Source: HB 339 (2025 PDF) — https://www.ncleg.gov/sessions/2025/bills/house/pd...
State law — Private employers (no statewide ban)
Current statutory status for private employers:
- No statewide prohibition for private employers.
- Employers may request prior compensation.
- Must follow federal anti-discrimination laws.
- No state penalties for such inquiries.
Sources: NC Dept. of Labor — https://www.labor.nc.gov/workplace-rights/employee... ; NC legislative tracking (SB 494 context) — https://www.ncleg.gov/Sessions/2023/Bills/Senate/P...
Salary History Best Practices for North Carolina Employers
- State executive agencies must not request salary history.
- State ban applies only to executive branch under Governor.
- Private employers may ask salary history; avoid using it.
- Focus pay on job requirements, market rates, qualifications.
- Comply with federal Equal Pay and anti-discrimination laws.
Consumer Credit Checks
NoNo NC law restricts employment credit checks; employers must comply with the federal FCRA when using consumer reporting agencies. https://www.ncleg.gov/EnactedLegislation/Statutes/... https://www.ftc.gov/legal-library/browse/statutes/...
Key Requirements
Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.)
Federal law governing employer credit reports:
- Applies when consumer reporting agencies used
- Standalone written disclosure and consent required
- Pre-adverse action copy of report required
- Final adverse-action notice naming CRA
- Employer certification of permissible purpose required
Sources: https://www.ftc.gov/legal-library/browse/statutes/...
Title VII of the Civil Rights Act (1964)
Federal anti-discrimination law relevant to checks:
- Blanket credit checks risk discrimination
- Checks need job-related business justification
- EEOC views unjustified checks skeptically
- Limit checks to role-specific financial roles
Source: https://www.congress.gov/congressional-report/116t...
North Carolina General Statutes Chapter 75 (Consumer Reporting)
State consumer-reporting statutes (no employment ban):
- No state ban on employment credit checks
- G.S. 75-63 addresses security freezes
- Employers must follow FCRA when using CRAs
- No separate private-employer regulation exists
Sources: https://ncleg.gov/EnactedLegislation/Statutes/HTML...
Executive Order No. 158 (North Carolina)
State order on fair-chance hiring for agencies:
- Applies to criminal-history checks only
- Imposes fair-chance (ban-the-box) rules
- Effective November 1, 2020
- Order does not cover credit checks
Source: https://governor.nc.gov/documents/files/executive-...
S.L. 2025-16 (Criminal background checks for child-facing positions)
Recent state law on child-related employee checks:
- Fingerprint-based SBI criminal checks required
- Applies to local employees working with children
- Conduct after conditional employment offer
- Law addresses criminal history, not credit
Sources: https://ncleg.gov/Sessions/2025/Bills/House/PDF/H4... https://ncsbi.gov/Services/Background-Checks.aspx
Credit Check Best Practices for North Carolina Employers
- Provide standalone disclosure, written consent, and certify CRA compliance.
- Provide pre-adverse notice with report and Summary of Rights.
- Send final adverse action notice naming the consumer reporting agency.
- Limit credit checks to job-related, justified financial positions.
- NC has no state law restricting employment credit checks.
Marijuana Protection
Medicinal Marijuana
North Carolina has no specific employment protections requiring accommodation of medical marijuana use. Employers may drug test under the Controlled Substance Examination Regulation Act (CSERA) (N.C. Gen. Stat. §§ 95-230–95-235); tests must follow CSERA and 13 NCAC 20.
Recreational Marijuana
Recreational marijuana remains illegal; no employment-use protections apply. Employers may prohibit use and test under CSERA (N.C. Gen. Stat. §§ 95-230–95-235) and 13 NCAC 20, including confirmatory testing and confidentiality requirements.
Drug Testing Regulations
North Carolina's CSERA (N.C. Gen. Stat. §§95‑230–95‑235) governs employer drug testing: approved labs and GC/MS confirmation required (current employees), 90‑day sample retention, 30‑day written notice (13 N.C. Admin. Code 20), retest at examinee’s expense; NCDOL enforces; DOT/NRC exempt.
Permitted Testing Types
Pre-Employment
Allowed subject to CSERA procedures; DOT/NRC employees exempt.
Random Testing
Allowed subject to CSERA procedures; DOT/NRC employees exempt.
Reasonable Suspicion
Allowed subject to CSERA procedures; DOT/NRC employees exempt.
Post Accident
Allowed subject to CSERA procedures; DOT/NRC employees exempt.
Workers' Compensation Discount
CSERA and related administrative rules do not mention workers' compensation premium discounts tied to employer drug-testing programs.
Contact the North Carolina Department of Insurance or your workers' comp carrier to confirm available premium discounts.
Best Practices
- Use approved laboratories for current-employee screening and confirmations
- Confirm positives via GC/MS or equivalent scientifically accepted method
- Maintain chain of custody and sanitary, dignity-preserving collections
- Provide written policy, ensure confidentiality, notify positives within 30 days
- Retain confirmed positive samples 90 days; retest at examinee expense
Clean Slate Laws
NoSB 562 (signed 25 June 2020) expanded petition-based expunctions. The automatic expunction provision was revised (not repealed) by SB 565 / S.L. 2024-35, signed by Governor Cooper on 8 July 2024: revised G.S. 15A-146(a4) now directs that automatic expunctions of eligible dismissed charges and not-guilty verdicts occur 180 to 210 days after final disposition, preserving automatic expunction after an earlier 2024 repeal proposal was dropped from the bill before final passage. Petition-based expunctions continue under G.S. 15A-146. G.S. 15A-153 bars employer inquiry about expunged arrests, charges, or convictions (civil penalty up to $500; no private right of action). EO 158 (signed 18 August 2020, effective 1 November 2020) limits state-agency criminal-history checks. Local ban-the-box ordinances exist (e.g., Durham, enacted 2011).
https://www.ncleg.gov/EnactedLegislation/Statutes/...
https://www.ncleg.gov/EnactedLegislation/Statutes/...
E-Verify Requirements
Mandatory for Employers of a Certain SizeWho Must Use E-Verify
Private Employers [G.S. Chapter 64, Article 2 (G.S. 64‑26)]
Private employers with 25+ employees in North Carolina must verify newly hired employees through E‑Verify. (G.S. 64‑26: https://www.ncleg.gov/EnactedLegislation/Statutes/...
Federal Contractors [G.S. 143‑48.5; G.S. 143‑129]
State agencies may not award contracts unless contractors/subcontractors (25+ employees) comply with Article 2 E‑Verify requirements. (Chapter 143: https://www.ncleg.gov/EnactedLegislation/Statutes/... Article 2: https://www.ncleg.gov/EnactedLegislation/Statutes/...
Any other relevant groups [G.S. 126‑7.1; G.S. 160A‑169.1; G.S. 153A‑99.1]
All state agencies, universities, community colleges, counties, and municipalities must register and participate in E‑Verify for newly hired employees. (G.S. 126‑7.1: https://ncleg.gov/EnactedLegislation/Statutes/PDF/... Chapter 160A: https://www.ncleg.gov/EnactedLegislation/Statutes/... Chapter 153A: https://www.ncleg.gov/EnactedLegislation/Statutes/...
Background Check Regulations
Federal background‑check laws (FCRA, EEOC) apply in North Carolina, and state statutes and agency rules layer on top—limiting certain fingerprint checks, protecting expunged records, and requiring criminal‑history decisions be job‑related; employers must follow NC statutes and agency guidance.
FCRA Compliance Process
Disclosure & Authorization
Provide clear, standalone written disclosure that a background check will be conducted. Obtain separate written authorization from the applicant before ordering the report.
Obtain Background Report
Order the background check from a Consumer Reporting Agency (CRA). Ensure the CRA is FCRA-compliant and provides accurate, up-to-date information.
Pre-Adverse Action Notice
If considering denying employment based on the report, provide the applicant with:
- Copy of the background report
- Copy of "A Summary of Your Rights Under the FCRA"
- Reasonable time to respond (typically 5 business days)
Adverse Action Notice
If final decision is made to deny employment, provide written notice including:
- Name, address, and phone number of the CRA
- Statement that the CRA did not make the decision
- Notice of right to dispute report accuracy
- Notice of right to request additional free copy within 60 days