Texas Employment Screening Overview
Texas is generally employer-friendly for background screening, with no statewide ban-the-box law, salary history ban, or credit check restrictions for private employers beyond FCRA. HB 2466 (ban-the-box) was introduced in 2025 but died in committee. The Texas Regulatory Consistency Act (2023) preempted local ban-the-box ordinances.
E-Verify is voluntary for private employers; SB 324 (which would have mandated E-Verify) passed the Senate in 2025 but died in the House and never became law. State agencies, certain state contractors, and sexually oriented businesses have existing E-Verify obligations. Federal requirements may impose additional obligations.
What's Permitted
- Private employers may ask about criminal history at any stage of hiring (no statewide ban-the-box)
- Private employers may conduct drug testing at any hiring stage with written policy
- Salary history inquiries generally permitted throughout the hiring process
- E-Verify voluntary for private employers; state agencies, certain contractors, and sexually oriented businesses have existing mandates
- Federal contractors must comply with federal E-Verify requirements where applicable
What's Prohibited
- Terminating employees for low-THC cannabis prescriptions without considering job duties (note: the scope of this protection is narrow and Texas law does not mandate employer accommodation of medical cannabis use)
- Failing to comply with federal FCRA requirements when using consumer reporting agencies for background checks
- Failing to comply with federal I-9 employment verification requirements
- Misclassifying employees as independent contractors solely to avoid I-9/E-Verify obligations
Ban the Box Laws
NoStatus Summary
Texas has no statewide ban-the-box law. HB 2466 was introduced in the 89th Legislature (2025) but died in the House Workforce Subcommittee without a vote. The Texas Regulatory Consistency Act (2023) preempted local ban-the-box ordinances like Austin's. Federal Fair Chance to Compete Act applies to federal contractors. Sources: https://efte.twc.texas.gov/references_background_c...
Key Requirements
No statewide ban-the-box law
Texas has no enacted ban-the-box legislation:
- HB 2466 was introduced in 2025 but died in committee
- Texas Regulatory Consistency Act preempted local ordinances
- Austin's Fair Chance Hiring Ordinance is unenforceable
- Employers may ask criminal history at any hiring stage
- Federal FCRA and EEOC guidance still apply
Sources: https://efte.twc.texas.gov/references_background_c...
Fair Chance to Compete for Jobs Act (federal)
Federal law affecting federal contractors and agencies:
- Applies to federal contractors and agencies
- Delay inquiries until conditional job offer
- EEOC warns against blanket exclusions
Source: https://www.eeoc.gov
Ban the Box Best Practices for Texas Employers
- No statewide ban-the-box law currently exists in Texas
- Follow EEOC guidance on individualized assessments of criminal history
- Comply with FCRA requirements when using third-party background checks
- Federal contractors must follow Fair Chance to Compete Act timing rules
- Document decisions and maintain consistent, job-related screening criteria
- Train hiring staff on anti-discrimination requirements and disparate impact risks
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/comm... | https://statutes.capitol.texas.gov/Docs/LA/pdf/LA....
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/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-co...
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-co...
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/comm... https://statutes.capitol.texas.gov/Docs/LA/pdf/LA....
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
NoCredit checks: governed by FCRA and Tex. Bus. & Com. Code Ch.20 (7-year rule; $75K exception). No state ban on credit checks. No statewide ban-the-box law.
FCRA: https://efte.twc.texas.gov/references_background_c...
Ch.20: https://www.statutes.legis.state.tx.us/Docs/BC/htm...
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 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
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
Texas Compassionate Use Program (Occupations Code Ch. 169) allows qualifying patients to possess low-THC cannabis prescriptions. HB 46 (signed June 21, 2025, effective September 1, 2025) significantly expanded the program by raising the THC limit to 10mg per dose (up from 1% by weight), adding qualifying conditions (chronic pain, Crohn's disease, traumatic brain injury, terminal illness, hospice), adding new delivery methods, and authorizing 12 additional dispensary licenses. Despite the expansion, employers may still refuse to hire or discipline employees for positive marijuana tests; the Compassionate Use Act does not create employment protections. Employers should expect more employees with valid prescriptions due to expanded qualifying conditions. https://statutes.capitol.texas.gov/Docs/OC/htm/OC.... https://www.mpp.org/states/texas/hb46-expands-comp...
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
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 a comprehensive automated clean slate law but has expanded automatic record clearing: HB 4504 (eff. Jan 1, 2025) introduced automatic expungement for certain dismissed charges and acquittals under new Chapter 55A; Gov. Code Section 411.072 provides automatic nondisclosure for first-time misdemeanor offenders. All other record sealing requires petition. https://statutes.capitol.texas.gov/Docs/CR/htm/CR.... https://statutes.capitol.texas.gov/docs/GV/htm/GV....
E-Verify Requirements
VoluntaryWho 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.
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.
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/... https://comptroller.texas.gov/purchasing/publicati... http://www.statutes.legis.state.tx.us/Docs/LA/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