State law · For employers

Kentucky background check laws for employers

What Kentucky law says about background checks for employment, beyond the federal Fair Credit Reporting Act (FCRA). Each section shows the rule, who it covers, its exceptions and the law it comes from.

Reviewed
Primary sources
6 laws cited

At a glance

The Kentucky rules on each topic, in one line. Federal law applies to every topic.

TopicKentucky rule
Criminal history questionsNo state rule. Federal law applies.
Limits on what a report includesKentucky adds one CRA-side limit. A consumer reporting agency may not keep any information in its files about a criminal charge in a Kentucky court unless the charge resulted in a conviction.
Sealed and expunged recordsKentucky has no automatic expungement. Relief is by petition: KRS 431.073 (certain felonies, vacate and expunge), 431.076 (acquittals and dismissals), 431.078 (misdemeanors, violations, traffic).
Credit checksNo state rule. Federal law applies.
Salary historyNo state rule. Federal law applies.
CannabisMedical cannabis is legal from January 1, 2025, but employers keep their drug policies.
Drug testing proceduresNo state statute sets private-employer testing procedures. An employer may not make an applicant pay for a required medical examination (KRS 336.220); whether a drug test counts as a medical examination under that section is not settled by its text.
State consumer reporting lawKentucky has no general consumer-reporting act.

What a background check report may include

Who it covers: Consumer reporting agencies (charges in Kentucky courts)

In force since: July 15, 1980

Kentucky adds one CRA-side limit. A consumer reporting agency may not keep any information in its files about a criminal charge in a Kentucky court unless the charge resulted in a conviction. So non-conviction Kentucky charges may not appear in a report at any age or salary level. Out-of-state charges are outside the section’s words. There is no Kentucky seven-year rule; the federal FCRA time limits apply.

Exceptions

  • None stated in the section; no salary threshold

KRS 367.310

Sealed and expunged records

Who it covers: All employers (the rule governs what the applicant must disclose)

In force since: June 29, 2023

Kentucky has no automatic expungement. Relief is by petition: KRS 431.073 (certain felonies, vacate and expunge), 431.076 (acquittals and dismissals), 431.078 (misdemeanors, violations, traffic). After an order, the matter is deemed never to have occurred and the person does not have to disclose it on an employment application. The statutes do not bar an employer from asking.

KRS 431.078(6) · KRS 431.076 · KRS 431.073(8)

Cannabis use and testing

Who it covers: All employers

In force since: January 1, 2025

Medical cannabis is legal from January 1, 2025, but employers keep their drug policies. KRS 218B.040 says the chapter does not require an employer to accommodate medical cannabis at work, does not stop drug-testing, drug-free workplace, or zero-tolerance policies, and creates no wrongful-discharge claim. An employer may judge a cardholder impaired using a behavioral assessment plus a cannabis test; the burden then shifts to the employee. Pre-employment THC testing is not limited.

Exceptions

  • None stated; federal programs unaffected

KRS 218B.040(1)(f) · KRS 218B.040(1)(d) · KRS 218B.040(3)

Drug and alcohol testing procedures

Who it covers: None

No state statute sets private-employer testing procedures. An employer may not make an applicant pay for a required medical examination (KRS 336.220); whether a drug test counts as a medical examination under that section is not settled by its text.

KRS 336.220(1)

The state consumer reporting law

Who it covers: Consumer reporting agencies

In force since: July 15, 1980

Kentucky has no general consumer-reporting act. KRS Chapter 367 carries two CRA rules only: the non-conviction-charge bar in KRS 367.310 (see reporting_limits) and the security-freeze sections (KRS 367.363 to 367.365). There is no added employer disclosure or authorization step, no investigative-report rule, no free-copy rule beyond federal law, and no CRA registration.

KRS 367.310

Where federal law alone applies

We found no Kentucky rule for private employers on these topics. The FCRA and other federal laws still apply.

  • Criminal history questions
  • Credit checks
  • Salary history

Local rules

Some places in Kentucky add their own rules. A local rule applies on top of the state rule.

  • Louisville/Jefferson County Metro (city-county). Public employer and city vendors. LMCO § 112.30 (Ordinance, Series 2014) bars Metro Government from asking about conviction history until the applicant is found otherwise qualified; applications carry no criminal-history box; the city must weigh eight factors before denying on a conviction; listed sensitive jobs are exempt. Vendors (§ 112.30(D)): the city prefers vendors with no criminal-history question on the initial application, the standards are part of the performance criteria for awarding city contracts, and the city may deny, rescind, or end a contract for failing to comply. It does not reach private employers without city contracts. Louisville Metro Code of Ordinances § 112.30 (Ord. Series 2014)

Coming changes

Laws already passed that take effect later.

  • From April 30, 2027. KRS 431.073 as amended by 2026 Ky. Acts ch. 126, sec. 31, effective April 30, 2027: adds a cross-reference to KRS 286.13-150 only; employment-application rule unchanged KRS 431.073 (effective April 30, 2027)

Every state’s changes, in date order: What changed.

Adverse action notices

Before you reject or act against someone because of a background check report, the FCRA requires a pre-adverse action notice, a wait, and then a final notice. The adverse action letter generator writes both notices and adds the Kentucky requirements where they apply.

The waiting period calculator gives the date under the federal rule.

Paperwork at hire

Besides the federal Form I-9 and W-4, Kentucky sets these for each new hire.

  • State withholding. Collect a 2026 Form K-4 from each new hire and keep it on file. Kentucky uses a flat 3.5% rate, so the form mainly records an exemption or extra withholding. Form K-4 (42A804)
  • New hire report. Report each new hire to Kentucky within 20 days. State new hire reporting
  • Notices at hire. Kentucky adds none beyond the federal forms that every employer gives.

Build the new hire checklist for Kentucky, with city rules, special cases and a due date for each item.

After the hire

Once a background check clears, payroll and onboarding come next. Rippling (paid link) runs payroll, benefits and onboarding from one employee record.

State law

Background check laws by state

Pick a state to see what its law adds to the federal FCRA. A darker state has state law on more of the eight topics we cover.

  • State law on 1 to 3 topics
  • 4 or 5 topics
  • 6 to 8 topics

Every state, with its review date