Colorado has built one of the more layered state frameworks around pre employment screening. On top of the federal Fair Credit Reporting Act, the state restricts when an employer can ask about criminal history, limits the use of credit reports in hiring, protects certain off duty conduct, and controls what a sealed or expunged record can be used for. None of this eliminates the value of a background check. It changes the timing, the questions an application can ask, and what an employer can do with the results. This guide walks through the main statutes, where the Colorado Bureau of Investigation fits in, and where the Colorado Department of Labor and Employment enforces the rules.
The Chance to Compete Act changes when you can ask about criminal history
Colorado’s ban the box law, commonly called the Chance to Compete Act and codified at section 8‑2‑130 of the Colorado Revised Statutes, is intended to give applicants with a criminal record a chance to be evaluated on qualifications before their history enters the conversation. Under the Act, an employer generally cannot state in a job posting or application that people with a criminal history will not be considered, and cannot ask about criminal history anywhere on the initial job application itself. The restriction applies to the application stage only. An employer may still ask about criminal history later in the process, during an interview, and may still request and rely on a background check report at any point in hiring, subject to the usual FCRA disclosure and authorization steps described below.
The law recognizes exceptions where a position is legally restricted to people without certain criminal histories, where the employer is required by law to run a criminal history check for the role, or where the employer participates in a program designed to encourage employment of people with criminal records. The Colorado Department of Labor and Employment, through its Division of Labor Standards and Statistics, handles complaints about the Act and can pursue enforcement action against employers who violate it. Complaints are filed directly with the division rather than through a private lawsuit.
The Employment Opportunity Act limits credit history in hiring decisions
A separate statute, the Employment Opportunity Act at section 8‑2‑126, restricts when an employer may request or use credit information, such as a credit report or credit score, in an employment decision. The law does not ban credit checks outright. It narrows the circumstances where credit history can factor into hiring, typically tying permitted use to positions with a genuine connection to the job, such as roles with fiduciary responsibility, access to financial accounts, or certain law enforcement and security positions defined by the statute. Outside those categories, using credit history to screen or reject a candidate can expose an employer to a complaint with the same Division of Labor Standards and Statistics that enforces the Chance to Compete Act.
Whenever a Colorado employer does pull a credit report as part of a background check, the federal Fair Credit Reporting Act still applies in full. That means a standalone disclosure, written authorization, and, if the report contributes to a negative decision, the pre adverse action and adverse action notice sequence described later in this guide.
Sealed and expunged records cannot be treated like an open file
Colorado law allows many arrest and conviction records to be sealed by court order once statutory eligibility conditions are met, under the sealing provisions found in Title 24, Article 72, Part 7 of the Colorado Revised Statutes, beginning around section 24‑72‑702 and including the petition and qualification rules at section 24‑72‑703. Once a record is sealed, state law treats the underlying arrest or case as though it did not occur for most purposes, and an employer generally may not require an applicant to disclose it or take an adverse action based on it. The Colorado Bureau of Investigation, which administers the state’s criminal history repository, stops releasing sealed records through its standard public search once a court order has been processed.
Colorado has also expanded automatic sealing for certain lower level, non violent case outcomes in recent years, an approach sometimes referred to informally as a clean slate style provision layered on top of the existing petition based process. Because eligibility depends heavily on the specific charge, disposition, and case history, and because the rules have continued to evolve, employers should treat any claim about exactly which records seal automatically and when as something to verify against the current statute rather than assume. For a broader look at how sealing and automatic clearance mechanisms work across states, see our related guide on clean slate laws and background checks.
How Colorado Bureau of Investigation checks actually work
Most Colorado specific criminal history searches run through the Colorado Bureau of Investigation in one of two forms. The Internet Criminal History Check, or ICHC, is a name and date of birth based search of Colorado only criminal history record information. It is fast, but it has real limits: it generally excludes juvenile arrests except where an offender was adjudicated as an adult, excludes certain traffic arrests involving very young minors, and, consistent with the sealing rules above, excludes any arrest sealed by court order. A name based search also carries a higher chance of a partial or multiple match when a name and birth date are common, which is one reason employers pair it with other identity verification steps rather than relying on it alone.
The second path is a fingerprint based Criminal History Record Information search, used when a state law or licensing rule requires it for a specific applicant category, such as certain healthcare, childcare, or licensed occupation roles. The Colorado Bureau of Investigation publishes the applicant categories and required vendors for fingerprint based employment and background checks directly on its site. Employers hiring into a role that is not subject to a specific fingerprinting mandate typically rely on a name based Colorado search combined with a broader multi state or national criminal record search, since a CBI check alone will not surface records from outside Colorado.
Lawful off duty activity, including marijuana, has narrow protection
Colorado has a general lawful activities statute, found at section 24‑34‑402.5, that generally prohibits an employer from terminating an employee for engaging in a lawful activity off the employer’s premises during nonworking hours. On its face, that could seem to cover recreational marijuana use, which is legal under Colorado state law. In practice, Colorado courts have read the statute to protect only activity that is lawful under both state and federal law, and marijuana remains a controlled substance under federal law regardless of state legalization. That interpretation has meant employers generally retain the ability to maintain a drug free workplace policy and to make employment decisions based on a positive marijuana test, even for off duty use, though outcomes can depend on specific facts and job duties. Employers should still apply any drug testing or lawful activity policy consistently and consult counsel before relying on this area to make an adverse decision, since it intersects with disability accommodation questions for registered medical marijuana patients and with safety sensitive job requirements.
Enforcement runs through CDLE, not private lawsuits, for most of these laws
For the Chance to Compete Act and the Employment Opportunity Act, Colorado routes enforcement through the Division of Labor Standards and Statistics inside the Department of Labor and Employment. An applicant or employee who believes an employer violated either law can file a written complaint with the division rather than suing directly, and the division investigates and can pursue action against a noncompliant employer. This complaint based structure means the practical risk for employers is regulatory exposure and reputational cost, not private damages litigation, for these two statutes specifically. The lawful activities statute is different: it has historically been enforced through direct claims by affected employees, as illustrated in litigation that reached the Colorado Supreme Court over off duty marijuana use.
Colorado’s screening rules at a glance
| Law | What it restricts | Who enforces it |
|---|---|---|
| Chance to Compete Act, C.R.S. 8‑2‑130 | Criminal history questions on initial applications and job postings excluding applicants with a record | CDLE Division of Labor Standards and Statistics |
| Employment Opportunity Act, C.R.S. 8‑2‑126 | Use of credit reports and credit history outside job related exceptions | CDLE Division of Labor Standards and Statistics |
| Record sealing statutes, Title 24, Article 72, Part 7 | Disclosure and use of sealed or expunged criminal records | Colorado courts and the Colorado Bureau of Investigation |
| Lawful activities statute, C.R.S. 24‑34‑402.5 | Termination for lawful off duty conduct, with a federal legality limit that generally excludes marijuana | Direct civil claims by affected employees |
Federal law still sets the floor
Every Colorado employer running a background check through a consumer reporting agency remains subject to the federal Fair Credit Reporting Act, regardless of what the state layer adds. That means a clear and conspicuous standalone disclosure before the check, written authorization from the applicant, and, if a report contributes to a decision not to hire, a pre adverse action notice with a copy of the report and the Summary of Rights, followed by a final adverse action notice if the employer proceeds. The Consumer Financial Protection Bureau, which administers the federal rules implementing the FCRA, maintains detailed guidance on these obligations, available through its Regulation V resource page. A background check does not automatically surface every record that exists on a candidate, and what typically appears depends on the type of search run, the jurisdictions searched, and state law limits like the ones described above.
Frequently asked questions
Can a Colorado employer ask about criminal history on a job application?
Generally no. The Chance to Compete Act prohibits asking about criminal history on the initial application and prohibits stating that applicants with a criminal record will not be considered. Employers may generally ask later in the hiring process and may run a background check consistent with FCRA requirements.
Can a Colorado employer run a credit check on every applicant?
Not automatically. The Employment Opportunity Act limits credit history use to job related circumstances defined in the statute. Outside those circumstances, using credit history in a hiring decision can be the basis for a complaint with the Colorado Department of Labor and Employment.
Do sealed or expunged Colorado records show up on a background check?
A properly sealed record generally will not appear on a standard Colorado Bureau of Investigation search once a court has processed the sealing order, and an employer generally should not ask an applicant to disclose it. Eligibility and timing for sealing depend on the specific statute and case facts, so employers should not assume a fixed rule applies to every case.
Does Colorado law protect employees who use marijuana off duty?
Colorado’s lawful activities statute protects some off duty conduct, but courts have limited that protection to activity that is lawful under both state and federal law. Since marijuana remains federally illegal, employers generally retain the ability to enforce a drug free workplace policy, though the details can vary and legal counsel should be consulted for specific situations.
What does the Colorado Bureau of Investigation background check actually cover?
The Internet Criminal History Check is a name based search limited to Colorado records, with exclusions for most juvenile records, certain young minor traffic arrests, and sealed arrests. It does not cover other states, which is why employers typically pair it with a broader search for candidates with ties outside Colorado.
Who enforces Colorado’s background check laws?
The Chance to Compete Act and the Employment Opportunity Act are enforced through complaints filed with the Colorado Department of Labor and Employment’s Division of Labor Standards and Statistics. The lawful activities statute has generally been enforced through direct civil claims brought by employees.
Employers building or auditing a Colorado hiring process can review how a compliant screening program fits together, starting with a policy review at Reveal Background, and can compare Colorado’s approach to ban the box against other states in our guide to ban the box and fair chance hiring laws.
This article is general information for employers and is not legal advice. Background check laws and their interpretation change and vary by circumstance, so consult qualified legal counsel before adopting or changing a screening policy.
