A felony conviction on a background check is rarely a simple yes or no flag. It is a record with a source, a charge, a disposition, and a date, and federal and state law both shape how long that record stays reportable and how an employer is allowed to react to it. Employers who understand where the record comes from and which rules govern its use make faster, more defensible hiring decisions. Applicants who understand the same rules know what to expect when a report comes back.
How a felony conviction shows up on a report
Criminal history on a background check comes from three general layers of public record, and a thorough report often pulls from more than one.
- County criminal records. Most felony convictions originate in county or municipal courts, and a county-level search of the court where the case was filed remains the most direct way to confirm a conviction and its disposition.
- State repositories. State police or state court administrative offices maintain statewide criminal history databases that aggregate records across counties, though coverage and update frequency vary by state.
- Federal court records. Federal felonies, including offenses like wire fraud, drug trafficking across state lines, or federal firearms violations, are filed in United States district courts and require a separate federal search.
Coverage and depth vary between these layers, which is why a thorough felony search often combines a county pull at the source court with a broader statewide or federal search rather than relying on any single database.
What fields actually appear on the record
A felony entry on a compliant report is not just a charge name. It includes several fields that determine how the record should be read.
| Field | What it tells the employer |
|---|---|
| Charge and statute | The specific offense as filed, which may differ from the offense as originally arrested |
| Disposition | Convicted, dismissed, acquitted, deferred, or diverted, which changes what the employer may legally act on |
| Disposition date | When the case closed, used to calculate how much time has passed since the conviction |
| Sentence | Incarceration, probation, fines, or a combination, relevant to assessing severity |
| Case or docket number | Allows verification directly with the court of record if a dispute arises |
The disposition field matters most. A charge with no final disposition, or one that ended in dismissal, is a different legal category than a conviction, and treating them the same way in a hiring decision creates unnecessary exposure.
The FCRA seven year rule applies to non-convictions, not convictions
One of the most common misunderstandings in hiring is the belief that all criminal records fall off a background check after seven years. Under the federal Fair Credit Reporting Act, the seven year reporting limit applies to civil suits, civil judgments, arrest records, tax liens, and other non-conviction items. Records of criminal convictions are explicitly excluded from that time limit and may be reported without a federal age restriction, subject to the state law layered on top. The statutory language is in 15 U.S.C. 1681c, the FCRA’s obsolescence provision.
State lookback limits layered on top of federal law
Because the FCRA does not cap conviction reporting, states are free to impose their own limits, and many do through consumer reporting statutes or fair employment laws. California is a clear example. Under the state’s Investigative Consumer Reporting Agencies Act, a consumer reporting agency generally cannot report certain criminal convictions beyond seven years from the disposition, sentencing, or release date, with exceptions tied to salary thresholds and specific job types. The statute is at California Civil Code Section 1786.18. Employers hiring across multiple states need to check each state’s rule separately rather than assume one national standard applies, since lookback windows, salary carve outs, and covered offenses all differ.
EEOC individualized assessment: nature, time, job relatedness
A felony conviction on a report is not automatically a lawful reason to deny employment. Because criminal record exclusions can have a disparate impact on protected groups, the Equal Employment Opportunity Commission’s 2012 enforcement guidance directs employers to conduct an individualized assessment before rejecting a candidate based on conviction history, rather than applying a blanket exclusion policy. The guidance identifies three factors employers should weigh:
- The nature and gravity of the offense
- The amount of time that has passed since the offense or completion of the sentence
- The nature of the job held or sought, and how directly the conviction relates to its duties
The full guidance is published at EEOC Enforcement Guidance on Arrest and Conviction Records, and the underlying notice appears in the Federal Register. Our detailed breakdown of how to apply these three factors is in individualized assessment after a criminal hit. A blanket policy that automatically disqualifies anyone with a felony record, regardless of the job or how long ago the conviction occurred, is the exact pattern the EEOC guidance warns against.
Ban the box and timing
Ban the box and fair chance laws control when in the hiring process an employer may ask about or consider criminal history, generally requiring that the question come after a conditional offer rather than on the initial application. California’s Fair Chance Act, for example, prohibits employers with five or more employees from inquiring about conviction history before a conditional offer is extended, and imposes its own individualized assessment and notice requirements once a conviction is found. The statute is at California Government Code Section 12952. Dozens of states and cities have adopted similar timing rules with varying details, and our ban the box and fair chance hiring laws guide walks through the landscape state by state.
Adverse action steps when a felony is the reason
When a felony conviction is the basis, or part of the basis, for declining to hire, promote, or retain someone, the FCRA’s adverse action process applies. Before taking final action, the employer must send a pre-adverse action notice that includes a copy of the report and a summary of the consumer’s rights, giving the applicant a reasonable opportunity to review and dispute the information. Only after that window passes may the employer send final adverse action notice. The disclosure obligations and the model summary of rights form are set out in the Consumer Financial Protection Bureau’s Appendix O to Regulation V, and the underlying statutory notice requirements are at 15 U.S.C. 1681m. Skipping the pre-adverse step, or combining individualized assessment with the notice in a way that does not give the candidate a real chance to respond, is one of the most common compliance failures employers make with conviction records.
Industry bars that override general hiring discretion
In some industries, a felony conviction is not just a factor to weigh, it is a statutory bar that removes the employer’s discretion entirely.
- Banking. Section 19 of the Federal Deposit Insurance Act prohibits FDIC-insured institutions from employing anyone convicted of a crime involving dishonesty, breach of trust, or money laundering without a prior written waiver from the FDIC. The statute is at 12 U.S.C. 1829, and the waiver procedure appears in 12 C.F.R. 303.220.
- Healthcare. Beyond a criminal record check, healthcare employers must confirm a candidate is not on a federal exclusion list. The Office of Inspector General maintains the List of Excluded Individuals/Entities, and employing someone on that list can jeopardize participation in federal healthcare programs. The exclusions database is at OIG Exclusions.
- Transportation. Commercial driver qualification and disqualification standards, including certain felony convictions involving controlled substances or use of a vehicle in the commission of a felony, are set out in Federal Motor Carrier Safety Administration regulations at 49 C.F.R. Part 383.
An employer decision framework
A defensible process for handling a felony hit generally follows this order:
- Confirm the disposition field shows an actual conviction, not an arrest, dismissal, or pending charge.
- Check whether the position falls under an industry bar, such as banking, healthcare exclusion screening, or a federal driver disqualification, where discretion may not apply.
- Apply the individualized assessment factors: nature of the offense, time elapsed, and relationship to the job.
- Confirm the record is still legally reportable under both the FCRA and the applicable state lookback statute.
- If leaning toward denial, follow the full adverse action sequence, including the pre-adverse notice and a real opportunity to respond, before finalizing the decision.
- Document the reasoning at each step. A written record of the individualized assessment is the strongest protection if the decision is later challenged.
Employers building or refining this process, including where felony findings fit into overall screening turnaround and package selection, can review Reveal Background’s screening packages and pricing to see how conviction searches, disposition verification, and adverse action support fit together in a single order.
Frequently asked questions
Does a felony conviction ever expire off a background check?
Not under federal law. The FCRA’s seven year reporting limit applies to non-conviction items like arrests and civil judgments, not to convictions. Some states impose their own lookback limits on convictions, so whether a specific felony is still reportable depends on which state’s law applies and the type of offense involved.
Can an employer automatically reject a candidate because of a felony?
A blanket policy that rejects every applicant with a felony record regardless of the job or how long ago it occurred runs against EEOC guidance, which calls for an individualized assessment of the offense’s nature, how much time has passed, and its relationship to the job duties.
What is the difference between a felony arrest and a felony conviction on a report?
An arrest is a record that charges were filed, with no finding of guilt. A conviction means the case concluded with a guilty finding or plea. The FCRA treats them differently for reporting purposes, and the EEOC guidance treats them differently for hiring decisions, since an arrest alone is not proof of conduct.
Do all industries allow individualized assessment for felony convictions?
No. Some industries have statutory bars that remove discretion, such as FDIC-insured banks under Section 19, certain healthcare roles subject to federal exclusion lists, and commercial driving positions subject to federal disqualification rules for specific offenses.
What happens if a candidate disputes a felony record on their report?
The pre-adverse action notice gives the candidate an opportunity to review the report and raise a dispute before a final decision is made. If the record is inaccurate, outdated, or belongs to someone else, the consumer reporting agency must investigate and correct verified errors before the employer proceeds.
Related Reading
This article is general information, not legal advice. Background screening rules vary by state and industry, and employers should consult qualified employment counsel before adopting or applying a criminal history policy.
