Texas Employment Screening Overview
Texas is generally employer-friendly for background screening, though a statewide ban-the-box law effective September 2025 requires employers with 15 or more employees to delay criminal history inquiries until after determining an applicant is otherwise qualified. The state also mandates E-Verify for most employers starting September 2025, while federal requirements and local ordinances may impose additional obligations.
What's Permitted
- Private employers may conduct drug testing at any hiring stage with written policy
- E-Verify mandatory for all employers statewide effective September 1, 2025
- Criminal history inquiries permitted only after interview or conditional offer
- Salary history inquiries generally permitted throughout the hiring process
What's Prohibited
- Asking about criminal history on initial job applications for employers with 15+ employees
- Requiring E-Verify enrollment for all private employers hiring new employees statewide
- Classifying workers as independent contractors solely to avoid E-Verify requirements
- Terminating employees for low-THC cannabis prescriptions without considering job duties
Ban the Box Laws
StatewideStatus Summary
Texas HB 2466 (effective Sept. 1, 2025) bans criminal-history questions on initial applications for public employers and private employers with 15+ employees; inquiry only after otherwise qualified and interview/conditional offer; exceptions where law requires; enforcement unspecified. https://capitol.texas.gov/tlodocs/89R/billtext/pdf/HB02466I.pdf https://efte.twc.texas.gov/references_background_checks.html
Key Requirements
House Bill 2466 (Texas)
Statewide ban-the-box law effective September 1, 2025:
- Prohibits criminal-history questions on initial applications
- Inquiries only after applicant is otherwise qualified
- Requires interview invite or conditional offer first
- Applies to public and 15+ private employers
- Exceptions for positions legally requiring background checks
Sources: HB 2466 bill text (Texas Legislature) https://capitol.texas.gov/tlodocs/89R/billtext/pdf/HB02466I.pdf, Texas Workforce Commission guidance https://efte.twc.texas.gov/references_background_checks.html
Ban the Box Best Practices for Texas Employers
- Remove criminal-history questions from initial application forms
- Ask about criminal history only after determining applicant otherwise qualified
- Invite to interview or extend conditional offer before inquiries
- Verify position exceptions required by law before early screening
- Train staff, document decisions, and maintain audit-ready records
Salary History Ban
NoTexas — No statewide salary-history ban
Texas has no state law prohibiting salary-history inquiries or use of prior pay:
- Employers may ask prior compensation.
- Employers may use prior wages.
- No state penalties for inquiries.
- Federal anti-discrimination laws still apply.
Sources: https://www.twc.texas.gov/sites/default/files/commissioners/docs/texas-guidebook-for-employers-2024.pdf | https://statutes.capitol.texas.gov/Docs/LA/pdf/LA.21.pdf
HB 2196 (proposed, 89th Legislature, 2025)
Proposes pay-range disclosure for public-sector positions only:
- Requires salary ranges in public postings.
- Applies to public-sector positions only.
- Does not ban salary-history questions.
- Not enacted as of Nov 2025.
Sources: https://capitol.texas.gov/tlodocs/89R/analysis/html/SJ00018H.htm
Equal Pay Act (federal)
Federal law limiting sex-based wage discrimination:
- Prohibits sex-based wage discrimination.
- Requires equal pay for similar work.
- Allows lawful pay-justification factors.
- Enforced by federal agencies and courts.
Sources: https://www.congress.gov/committee-report/117th-congress/house-report/13/1
Paycheck Fairness Act (proposed federal)
Proposed federal restrictions on salary history and transparency:
- Generally prohibits requesting wage history.
- Requires pay-scale disclosure upon request.
- Imposes civil penalties and damages.
- Not enacted as of Nov 2025.
Sources: https://www.congress.gov/committee-report/117th-congress/house-report/13/1
Important Distinction
Texas has no statewide salary-history ban; employers may lawfully request prior wages, subject only to federal equal-pay and anti-discrimination laws. https://www.twc.texas.gov/sites/default/files/commissioners/docs/texas-guidebook-for-employers-2024.pdf https://statutes.capitol.texas.gov/Docs/LA/pdf/LA.21.pdf
Salary History Best Practices for Texas Employers
- No statewide ban—salary history inquiries are permitted.
- Ensure compliance with federal equal pay and anti‑discrimination laws.
- Train recruiters and managers on jurisdictional salary‑history rules.
- Document compensation decisions with job‑related, non‑discriminatory justifications.
- Apply most‑restrictive jurisdiction policy for remote or multi‑state hires.
Consumer Credit Checks
Allowed with RestrictionsCredit checks: governed by FCRA and Tex. Bus. & Com. Code Ch.20 (7‑year rule; $75K exception). No state ban on credit checks. HB 2466 (eff. 9/1/2025) restricts timing of criminal‑history inquiries. FCRA | Ch.20 | HB 2466
FCRA: https://efte.twc.texas.gov/references_background_checks.html
Ch.20: https://www.statutes.legis.state.tx.us/Docs/BC/htm/BC.20.htm
HB 2466: https://capitol.texas.gov/tlodocs/89R/billtext/pdf/HB02466I.pdf
Key Requirements
Fair Credit Reporting Act (FCRA)
Federal law governing employment consumer reports:
- Written disclosure before conducting any check
- Written authorization required from applicant
- Adverse-action notice with report copy
- Retain reports at least one year
- Applies to all employers using reports
Sources: FCRA overview — Texas DPS summary
Texas Business and Commerce Code — Chapter 20
State implementation of FCRA protections:
- Implements FCRA standards in Texas
- Defines consumer reports for employment
- Seven-year reporting limit generally applies
- $75,000 salary exception for older records
- Medical information prohibited in reports
Source: Tex. Bus. & Com. Code Ch. 20
Texas Labor Code Section 1.005 (Preemption)
State preemption of local screening ordinances:
- Preempts local background-check ordinances
- Uniform statewide screening rules apply
- Austin ordinance unenforceable since September 2023
- Employers follow state and federal law
House Bill 2466 (HB 2466)
Statewide "ban-the-box" on criminal-history inquiries:
- Prohibits asking criminal history on applications
- Allowed after qualified or interview invitation
- Allowed after conditional employment offer
- Effective September 1, 2025 statewide
- Does not restrict credit checks
Source: HB 2466 bill text (PDF)
Credit Check Best Practices for Texas Employers
- Comply with FCRA and Texas Chapter 20 requirements
- Obtain written notice and separate authorization before checking
- Provide adverse-action notice, a copy of report, FCRA summary
- Retain reports and related documentation securely for one year
- Exclude medical information; honor Chapter 20 seven-year limits
Marijuana Protection
Medicinal Marijuana
Qualified low‑THC medical patients may possess prescriptions, but employers may refuse hire or discipline for positive tests; prescriptions do not prevent adverse employment actions. https://statutes.capitol.texas.gov/Docs/OC/htm/OC.169.htm https://www.twc.texas.gov
Recreational Marijuana
No legal protections for recreational marijuana use; private employers may test and discipline employees for marijuana; public employers face constitutional limits and federal rules (e.g., DOT, Drug‑Free Workplace) may apply. https://www.twc.texas.gov https://www.ecfr.gov/current/title-49/subtitle-B/chapter-III/part-382 https://www.law.cornell.edu/uscode/text/41/8102
Drug Testing Regulations
As of January 2026, Texas permits private employers broad discretion to drug-test (public employers face constitutional limits). Employers should use written policies, employee consent, GC/MS confirmatory tests and chain-of-custody documentation; federal DOT and contractor rules may apply.
Permitted Testing Types
Pre-Employment
Allowed for conditional job offers with written policy and consent.
Random Testing
Allowed with written policy and advance notice; employer discretion.
Reasonable Suspicion
Allowed when observable impairment or reasonable suspicion; require documentation.
Post Accident
Allowed for employees involved in workplace accidents suggesting impairment.
Workers' Compensation Discount
Texas has no current workers' compensation premium discount tied to employer drug-testing programs.
A prior requirement for employers with 15+ employees was repealed in 2005; no statutory discount now.
Best Practices
- Maintain written drug testing policy; obtain employee acknowledgement
- Require signed consent and disclosure of result recipients
- Use reputable labs; confirm positives with GC/MS
- Preserve chain of custody and complete documentation for disputes
- Comply with federal/DOT rules; give 60-day notice for random programs
Clean Slate Laws
NoTexas lacks an automated clean‑slate law, relying on petition‑based sealing with limited automatic nondisclosure for first‑time misdemeanors; HB 2466 (effective Sept. 1, 2025) established a statewide ban‑the‑box for employers with ≥15 employees. https://statutes.capitol.texas.gov/docs/GV/htm/GV.411.htm https://www.dps.texas.gov/section/crime-records
Eligible Offenses
Can Be Expunged
- Criminal history inquiries permitted only after determining applicant is otherwise qualified and extending interview or conditional offer, for employers with 15+ employees
- Salary history inquiries generally permitted at any stage of the hiring process
- E-Verify registration required for all private employers, state contractors, and political subdivisions as of September 2025
- Employer drug testing generally permitted with written policy and employee notice
Not Eligible
- Criminal history inquiries permitted only after determining applicant is otherwise qualified and extending interview or conditional offer, for employers with 15+ employees
- Salary history inquiries generally permitted at any stage of the hiring process
- E-Verify registration required for all private employers, state contractors, and political subdivisions as of September 2025
- Employer drug testing generally permitted with written policy and employee notice
Legal Effect of Expungement
Sealed records generally become inaccessible to private employers and need not be disclosed.
Employer Impact:
- Sealed records typically excluded from standard consumer background checks
- Applicants may lawfully answer "no" about sealed convictions
- Employers generally immune from liability for sealed record misconduct
- Ban-the-box law prohibits criminal history questions on initial applications
- Fingerprint-based checks may reveal sealed records for certain positions
- Seven-year lookback rule applies to most arrest and conviction reports
E-Verify Requirements
Mandatory for Employers of a Certain SizeWho Must Use E-Verify
Private Employers — SB 324 (failed)
No statewide E‑Verify mandate for private employers; SB 324 died in the House and never became law.
https://www.twc.texas.gov/sites/default/files/texas-guidebook-for-employers-2024.pdf
Federal Contractors — Federal E‑Verify program (DHS/E‑Verify)
Federal contractors must follow applicable federal E‑Verify/procurement requirements where imposed; Texas state law does not override federal obligations.
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.673.htm
Any other relevant groups — Government Code Ch. 673; Comptroller procurement rules; Labor Code §51.016
State agencies, certain state contractors/subcontractors, and sexually oriented businesses are subject to existing Texas E‑Verify requirements and procurement rules.
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.673.htm https://comptroller.texas.gov/purchasing/publications/procurement-contract.php http://www.statutes.legis.state.tx.us/Docs/LA/htm/LA.51.htm
Background Check Regulations
Federal FCRA governs employment consumer‑report background checks, but Texas adds state‑specific rules—timing, scope, lookback limits and industry/licensing restrictions—so employers must comply with both federal law and applicable Texas statutes, regulations, and local ordinances.
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