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Are Your Background Screenings Compliant? Keep These Practices in Mind

By Kerry Owsley posted 07-30-2025 08:00 AM

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Laws in some states restrict the types of questions organizations can ask job applicants. In Colorado, for example, the Chance to Compete Act states, among other things, that private employers cannot inquire into an applicant's criminal history on an initial application.

Despite such limitations on inquiries into a job applicant’s history, rigorous pre-employment background screens performed post-job offer remain vital. Employment and degree verifications and running a thorough records search for county and federal crimes can be beneficial for reasons that include the following:

To give you peace of mind that you’re hiring someone who is honest and has made verifiable claims on their application.

To help prevent a potentially costly negligent hiring lawsuit if something unforeseen, such as a violent crime, is committed by the person after being hired.

Considerations for Employers

Positions where employees have access to safety-sensitive equipment, are responsible for minors or the elderly, are medical professionals, or positions that involve unaccompanied home visits are a few examples of when a rigorous background check is necessary.

While there are costs associated with conducting an extensive background check, doing so is typically much less expensive than the cost of facing a negligent hiring claim.

Reporting Time Limits

Many reputable background screening services, including Employers Council’s in-house Pre-employment Screening Services, have a reporting time limit of seven years to abide by state laws, as well as the federal reporting requirements under the Fair Credit Reporting Act (FCRA).

In some states, including California and Colorado, there may be stricter guidelines on when it is permissible to report a felony or misdemeanor than federal law requires. If you conduct automated background checks in your applicant tracking system or recruiting module, ensure your reports are set to only provide you with information that is reportable under federal and state laws and abide by the adverse action requirements under the FCRA.

If you have employees in Colorado, make sure you are aware of the requirements under the Colorado Artificial Intelligence Act, which takes effect on February 1, 2026.

Help Is Available

Learn more about pre-employment screening best practices in this Employers Council whitepaper and in this previous article. Click here for more information about the comprehensive background screening and drug testing services we offer to both members and nonmembers. If you have any questions, please email us at screeningservices@employerscouncil.org.