North Dakota Employment Screening Overview
North Dakota is relatively employer-friendly for background screening, with limited statewide restrictions primarily affecting public sector hiring.
Public employers must delay criminal history inquiries until after selecting applicants for interviews, though private employers face no such state-level ban-the-box requirement. The state requires employers to pay for any drug or alcohol testing they mandate and has record sealing laws that prohibit inquiring about sealed convictions. Federal requirements and local ordinances may still apply.
What's Permitted
- Public employers may ask about criminal history after selecting applicant for interview
- Private employers generally permitted to inquire about salary history
- Employers may test for marijuana and enforce drug-free workplace policies
- Employers must bear all costs of required drug and alcohol testing
What's Prohibited
- Inquiring about criminal history before interview selection (public employers only)
- Requiring employees or applicants to pay for employer-mandated drug or alcohol tests
- Asking about or considering sealed or expunged records in employment decisions
- Discriminating based on lawful off-duty conduct where not job-related
- Retaliating against employees for exercising protected rights
Ban the Box Laws
Public Employers OnlyStatus Summary
North Dakota’s ban-the-box law applies only to public employers, delaying inquiries until interview selection (HB 1282; NDCC 12.1-33-02.2). Excludes school districts, the Department of Corrections and Rehabilitation, and agencies with mandatory checks. No private-employer or local ordinances. FCRA/Title VII apply.
Key Requirements
North Dakota House Bill 1282 (NDCC 12.1‑33‑02.2)
State ban-the-box law for public employers:
- Applies only to public employers.
- No criminal-history inquiries until interview selected.
- Exempts Dept. of Corrections; school districts.
- Employers may pre-notify automatic disqualifiers.
- Remove criminal questions from applications.
Sources: https://ndlegis.gov/files/resource/66-2019/library... | https://ndlegis.gov/cencode/t12-1c33.pdf | https://www.nd.gov/labor/human-rights
Fair Chance to Compete for Jobs Act (federal)
Federal fair-chance rule for contractors/agencies:
- Applies to federal agencies and contractors.
- Delay criminal-history inquiries until conditional offer.
- Effective December 2021.
- Covers federal-contract hiring only.
Sources: https://aspe.hhs.gov/sites/default/files/private/p... | https://www.eeoc.gov/laws/guidance/enforcement-gui...
Fair Credit Reporting Act (FCRA)
Federal consumer-reporting rules for background checks:
- Requires written authorization before checks.
- Must provide pre-adverse action notice.
- Must provide final adverse action notice.
Sources: https://www.eeoc.gov/laws/guidance/enforcement-gui... | https://ndlegis.gov/cencode/t12c60.pdf
Ban the Box Best Practices for North Dakota Employers
- Remove criminal-history questions from initial public job applications
- Delay criminal-history inquiries until applicant selected for interview
- Recognize exemptions: school districts, Dept. of Corrections, statutory checks
- Instruct background-check vendors not to run checks pre-interview
- Follow FCRA, Title VII, and individualized assessment procedures
Salary History Ban
NoNo State Salary History Ban (North Dakota)
As of Nov 2025, no statewide ban exists: https://www.nd.gov/labor/home
- Employers may ask salary history.
- No statewide disclosure requirements.
- May use history in pay setting.
- Risk of perpetuating pay inequities.
North Dakota Equal Pay for Men and Women Act (NDCC 34-06.1)
State law prohibiting gender-based wage discrimination: https://ndlegis.gov/cencode/t34c06-1.pdf
- Equal pay for comparable work.
- Exceptions: seniority, merit, production.
- Each discriminatory paycheck is violation.
- Liquidated damages for willful violations.
North Dakota Human Rights Act (NDCC 14-02.4)
Broad anti-discrimination law covering compensation: https://ndlegis.gov/cencode/t14c02-4.pdf
- Prohibits discrimination across protected classes.
- Includes compensation and employment terms.
- Prohibits retaliation for reporting discrimination.
- Enforced by state labor department.
Salary Transparency Act (H.R. 1599) — Federal proposal
Federal bill proposing salary-range disclosures and bans: https://www.congress.gov/bill/118th-congress/house...
- Prohibits asking applicants' salary history.
- Requires wage-range disclosures in postings.
- Civil penalties for violations.
- Private right of action for employees.
Salary History Best Practices for North Dakota Employers
- Avoid relying solely on applicants' past salaries
- Document objective factors justifying compensation decisions
- Conduct regular pay equity audits
- Train managers on equal pay and discrimination laws
- Provide salary ranges in postings to promote transparency
Consumer Credit Checks
NoNo North Dakota law restricts general employment credit checks; FCRA governs. N.D.C.C. Ch.13‑10 applies to mortgage loan‑originator licensing (https://ndlegis.gov/cencode/t13c10.pdf). Public‑employer ban‑the‑box: N.D.C.C. §12.1‑33‑02.2 (https://ndlegis.gov/cencode/t12-1c33.pdf).
Key Requirements
Fair Credit Reporting Act (FCRA)
Federal requirements governing consumer reports for hiring:
- Written consent needed before credit checks.
- Provide pre-adverse action notice.
- Provide final adverse action notice.
- Comply with consumer report accuracy obligations.
N.D.C.C. Chapter 13-10 (Mortgage loan originator licensing)
State law for mortgage licensing and background checks:
- Requires credit reports for license applicants.
- Requires background investigations for applicants.
- Applies only to mortgage loan originators.
- Not a general employment restriction.
N.D.C.C. § 12.1-33-02.2 (Public employer ban-the-box)
Limits criminal-history inquiries in public hiring:
- Public employers delay criminal history inquiries.
- Applies after applicant selected for interview.
- Effective for public hiring processes only.
- Does not cover private employers.
N.D.C.C. Chapter 14-02.4 (Enforcement — human rights)
State enforcement of employment discrimination claims:
- State enforces discrimination complaints.
- ND Department handles investigations.
- Complaints filed within 300 days.
- Remedies include investigations and civil relief.
Credit Check Best Practices for North Dakota Employers
- Comply with FCRA: obtain written consent and follow procedures.
- No state-wide ban on employer credit checks for general employers.
- Limit credit checks to job-related, document business necessity.
- Public employers: follow N.D.C.C. §12.1-33-02.2 ban-the-box.
- Mortgage loan originators: credit reports required by N.D.C.C. chapter 13-10.
Marijuana Protection
Medicinal Marijuana
Employers may discipline for possession, use, impairment, or working with marijuana in their system—even if medically authorized (N.D.C.C. §19‑24.1‑34).
Recreational Marijuana
Recreational marijuana is illegal in North Dakota; employers may test for and discipline positive results and maintain workplace prohibitions—no employee protections (N.D. Century Code).
Drug Testing Regulations
North Dakota requires employers to pay for job-related drug/alcohol tests (N.D.C.C. §34‑01‑15); DOT/FTA rules govern safety‑sensitive transit testing (49 C.F.R. Parts 40, 655); employers may discipline for marijuana possession/use, impairment, or "marijuana in the system" (N.D.C.C. §19‑24.1‑34).
Permitted Testing Types
Pre-Employment
Allowed — employer must pay; mandatory for FTA safety-sensitive positions.
Random Testing
Allowed — employer must pay; mandatory for FTA safety-sensitive employees.
Reasonable Suspicion
Allowed — employer must pay; FTA requires trained supervisors.
Post Accident
Allowed — employer must pay; FTA requires testing within 32 hours.
Workers' Compensation Discount
No statutory workers' compensation premium discount tied to employer drug testing is identified in the provided North Dakota legislation.
Positive tests or refusals can create a rebuttable presumption and may deny benefits; medical marijuana is not reimbursed.
Best Practices
- Employer pays all required drug and alcohol testing costs
- Follow federal DOT/FTA rules for safety-sensitive positions
- Maintain clear written policies; document testing and outcomes
- Discipline allowed for medical marijuana, including "marijuana in system"
- Use HHS/SAMHSA-certified labs and Medical Review Officers
Clean Slate Laws
NoND law (N.D.C.C. ch.12‑60.1) permits petition sealing (HB1256, eff. Aug 1, 2019), automatic nonconviction closure Aug 1, 2025 (HB1166), 3/5‑year waits; sealed records excluded from employment checks except statutorily required/licensing/FBI checks.
E-Verify Requirements
VoluntaryWho Must Use E-Verify
Private Employers [N.D.C.C. Ch. 34‑15; HB 1527 (68th‑2023) — failed]
E‑Verify is not required under North Dakota law; employers must comply with federal Form I‑9 and N.D. new‑hire reporting (20‑day rule). https://www.hhs.nd.gov/childsupport/employers/new-... https://ndlegis.gov/assembly/68-2023/regular/journ...
Federal Contractors [Federal contracting requirements (as applicable)]
Federal contracts may require E‑Verify where contract clauses or federal law mandate it; North Dakota imposes no separate statewide contractor E‑Verify mandate. https://workforce.equifax.com/e-verify-state-requi... https://www.nd.gov/labor/home
Any other relevant groups [Federal IRCA (Form I‑9); OMB/state policies]
State agencies must follow federal Form I‑9 rules (original document review); North Dakota maintains state employment verification/retention policies. E‑Verify is not mandated by state law. https://www.omb.nd.gov/team-nd-careers/state-emplo... https://www.docr.nd.gov/careers
Background Check Regulations
Federal FCRA rules govern employment consumer reports, and North Dakota adds state and agency requirements (e.g., licensing, criminal-history access, timing/authorization) that layer on top of federal law. Employers must follow FCRA procedures and consult FTC and ND Attorney General guidance to ensure compliance.
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