North Carolina does not have a single, comprehensive state statute that governs how private employers use background checks the way some other states do. That does not mean employers in the state operate without rules. Federal law sets the floor for every hiring decision that relies on a background check, and North Carolina layers a handful of state specific pieces on top of it, including how certain criminal records can be cleared or shielded and how some local governments handle their own hiring. This guide walks through what applies statewide, what is limited to public employers, and the federal steps that apply no matter where in North Carolina the job is located.
The federal baseline every North Carolina employer still has to meet
Any employer that orders a background check through a third party consumer reporting agency is subject to the Fair Credit Reporting Act, regardless of state. The statute, codified at 15 U.S.C. 1681b, limits the “permissible purposes” for which a report can be obtained and requires a chain of specific steps before and after the check is used in a hiring decision:
- A clear, standalone written disclosure to the applicant that a background check will be obtained, separate from the job application itself.
- The applicant’s written authorization before the report is pulled.
- A pre-adverse action notice, a copy of the report, and a copy of the Summary of Rights before the employer finalizes a decision to deny employment based on the report.
- A waiting period that gives the applicant a reasonable chance to dispute inaccurate information.
- A final adverse action notice if the employer proceeds with the denial after that waiting period.
None of this changes because the job is in North Carolina. State rules described below sit on top of this federal structure; they do not replace it.
What North Carolina adds on top of federal law
No statewide ban the box law for private employers
North Carolina has not enacted a statewide law that restricts when a private employer may ask about criminal history on a job application. Executive action has directed state cabinet agencies to remove the criminal history question from initial applications for many state government positions, moving that inquiry later in the hiring process. That directive governs hiring inside the executive branch of state government. It does not bind private businesses, nonprofits, or most local governments, and it does not change the FCRA steps described above. Employers hiring for private sector roles in North Carolina should not assume any state law restricts the timing of a criminal history question, because currently none does for the private sector.
Local fair chance hiring policies
Several North Carolina cities and counties have adopted fair chance hiring policies for their own municipal or county government positions, removing the criminal history question from the first stage of their own job applications. These policies apply to that local government as an employer. They are not countywide or citywide mandates on private businesses operating within those boundaries. Employers should check with their own city or county human resources office if they want to know whether a local policy applies to them specifically, rather than assuming a neighboring city’s internal hiring practice extends to private payrolls. For a broader look at how ban the box and fair chance rules work across different states, see our guide to ban the box and fair chance hiring laws.
Expunged records
North Carolina law allows certain records to be expunged, meaning the record is removed from public access. The eligibility rules are specific and vary by offense type, age at the time of the offense, and criminal history. One of the more commonly used provisions, N.C. Gen. Stat. 15A-145, allows a first time offender convicted of certain misdemeanors to petition for expunction after a waiting period and a showing of good behavior, subject to conditions set out in the statute, including that the offense was not an impaired driving charge or one requiring sex offender registration. Once a record is properly expunged, state law generally treats the underlying charge as if it did not occur for most purposes, and a background check should not report it. A consumer reporting agency that continues to report an expunged record risks an FCRA accuracy violation, independent of the state expunction order itself.
Certificate of relief
North Carolina also allows some people with limited felony or misdemeanor records to petition for a certificate of relief under N.C. Gen. Stat. 15A-173.2. A certificate of relief does not erase or expunge the conviction and it is not a pardon. What it does is relieve many of the automatic collateral consequences that would otherwise attach to that conviction, such as certain licensing bars, and it requires that an administrative agency, government official, or court weigh the certificate favorably when deciding whether the conviction should disqualify the person from a license, permit, or similar benefit. A certificate of relief can be revoked if the person is later convicted of another felony or misdemeanor. Because the underlying conviction still exists and is not sealed, it can still appear on a standard criminal history search; the certificate instead works as a weight on the employer’s or licensing body’s disqualification decision, not a filter on what shows up in the report.
What can be reported, and when
| Record type | Can it generally appear on a report | North Carolina specific point |
|---|---|---|
| Criminal convictions | Yes, the FCRA places no time limit on reporting convictions | Available through North Carolina court records and the State Bureau of Investigation’s criminal history services |
| Arrests that did not lead to conviction | Reportable only within limits set by the FCRA | North Carolina does not add an additional statewide reporting limit beyond the federal rule |
| Expunged records | Should not appear once expunction is granted and processed | Governed by the expunction provisions in Chapter 15A of the General Statutes |
| Convictions covered by a certificate of relief | Still appears on the criminal history itself | The certificate affects how a disqualification decision must weigh the conviction, not whether it is reported |
| Pending charges | Yes, as a public record of a current case | Reflects the case status at the time of the search; employers should confirm the case is still active before relying on it |
Because expunction eligibility and timelines are fact specific, employers should not assume a dismissed or old charge has actually been expunged. A dismissal and an expunction are not the same thing, and only a completed expunction changes what should be reported.
How EEOC guidance factors into the decision
Even where North Carolina law is silent, federal nondiscrimination law still constrains how a criminal record can be used. The EEOC’s guidance on arrest and conviction records explains that an employer can violate Title VII either by treating applicants with similar records differently based on a protected characteristic, or by applying a criminal history exclusion that is neutral on its face but falls more heavily on a protected group, unless the employer can show the exclusion is job related and consistent with business necessity. The agency has pointed to individualized factors, including the nature of the offense, the time that has passed, and the nature of the job, as a more defensible approach than a blanket exclusion rule. The EEOC’s broader overview of prohibited employment policies and practices covers how these protections interact with hiring criteria generally. Employers should document the reasoning behind any criminal history based decision, not just the outcome.
The FCRA process North Carolina employers still have to run
None of the state specific points above remove the obligation to follow the federal adverse action process correctly. A North Carolina employer that decides not to hire someone, in whole or in part, because of information in a background check must still issue a pre-adverse action notice with a copy of the report and the Summary of Rights, wait a reasonable period, and then send a final adverse action notice if the decision stands. Skipping any of these steps is a federal violation independent of anything North Carolina state law does or does not require. Our step by step breakdown of the FCRA adverse action process covers the timing and required content of each notice in more detail.
Practical steps for North Carolina employers
- Use a standalone disclosure form, separate from the job application, and obtain written authorization before ordering any report.
- Do not assume a criminal record has been expunged just because an applicant says it was dismissed; expunction and dismissal are legally distinct outcomes.
- If an applicant presents a certificate of relief, weigh it as the statute requires rather than treating the underlying conviction as determinative on its own.
- Apply criminal history criteria consistently across applicants for the same role, and be able to explain how a given offense relates to the job’s duties.
- Confirm whether your own city or county government has adopted a fair chance policy only if you are hiring for that government itself; it does not extend automatically to private employers nearby.
- Run every pre-adverse and adverse action notice through the full federal process, every time, regardless of how confident you are in the result.
Working with a consumer reporting agency that understands both the federal FCRA framework and how North Carolina’s expunction and certificate of relief provisions affect what should and should not appear on a report, such as Reveal Background, helps reduce the risk of reporting a record that state law says should no longer be visible.
Frequently asked questions
Does North Carolina have a ban the box law for private employers
No. North Carolina has not enacted a statewide law restricting when private employers can ask about criminal history. Executive action limiting the timing of that question applies to state government hiring, not to private businesses.
Can a North Carolina employer see an expunged record
Once a record is properly expunged under the applicable provision of Chapter 15A of the General Statutes, it generally should not appear on a background check or in court records available to the public. An employer should not treat a dismissed charge as automatically expunged without confirmation.
What does a certificate of relief actually do
A certificate of relief under N.C. Gen. Stat. 15A-173.2 does not erase the conviction or remove it from a background check. It relieves many automatic collateral consequences and requires that licensing bodies, agencies, and courts weigh the certificate favorably when a disqualification decision is based on that conviction.
Do North Carolina’s fair chance hiring policies apply to private companies
Generally no. The fair chance hiring policies adopted by some North Carolina cities and counties apply to that local government’s own hiring process, not to private employers operating in the area.
Does the FCRA adverse action process still apply in North Carolina
Yes. The Fair Credit Reporting Act’s disclosure, authorization, pre-adverse action, and final adverse action requirements apply to every employer using a third party background check, in every state, including North Carolina.
Where can a North Carolina employer confirm criminal record details
North Carolina’s court system provides information on criminal records and expunction procedures through its public help topics, and the state’s background check should be sourced through a properly licensed consumer reporting agency rather than informal searches.
This article is general information, not legal advice. Employers should consult qualified counsel about how these rules apply to their own hiring practices.
