State law · For employers
North Carolina background check laws for employers
What North Carolina 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
On this page
At a glance
The North Carolina rules on each topic, in one line. Federal law applies to every topic.
| Topic | North Carolina rule |
|---|---|
| Criminal history questions | No state rule. Federal law applies. |
| Limits on what a report includes | No state rule. Federal law applies. |
| Sealed and expunged records | Expunction is mostly petition-based (G.S. 15A-145 to 15A-152). |
| Credit checks | No state rule. Federal law applies. |
| Salary history | No state rule. Federal law applies. |
| Cannabis | No cannabis legalization, medical or adult-use. No employment protection for cannabis use. |
| Drug testing procedures | The Controlled Substance Examination Regulation Act (G.S. 95-230 to 95-235) sets procedures for any employer that tests applicants or employees for controlled substances. |
| State consumer reporting law | No state rule. Federal law applies. |
Sealed and expunged records
Who it covers: All employers and educational institutions
In force since: December 1, 2021
Expunction is mostly petition-based (G.S. 15A-145 to 15A-152). The Second Chance Act added automatic expunction: charges disposed on or after December 1, 2021 that are dismissed or end in not guilty or not responsible are expunged by operation of law 180 to 210 days after final disposition, except felonies dismissed under a plea agreement (G.S. 15A-146(a4), as revised by S.L. 2024-35). Since July 9, 2025 (S.L. 2025-71), a person may petition to expunge one nonviolent misdemeanor three years after conviction or completion of the sentence, down from five. Effect on employers (G.S. 15A-153): an applicant need not disclose expunged arrests, charges or convictions; an employer may not require disclosure in an application, interview or otherwise, and may not knowingly and willingly ask about a record it knows was expunged. Employers may still ask about charges and convictions that have not been expunged. The Commissioner of Labor enforces: a written warning for a first violation, then a civil penalty of up to $500 for each later violation (15A-153(f)). No private cause of action.
Exceptions
- 15A-153(c) does not apply to State or local law enforcement agencies authorized by G.S. 15A-151 to obtain confidential expunction information for employment purposes
- 15A-153(e): certification applicants before the Criminal Justice and Sheriffs’ Education and Training Standards Commissions must disclose some expunged convictions
N.C. Gen. Stat. 15A-153(c) · N.C. Gen. Stat. 15A-153(c) · N.C. Gen. Stat. 15A-146(a4) · N.C. Gen. Stat. 15A-146(a4)(1) · N.C. Gen. Stat. 15A-153(f) · N.C. Gen. Stat. 15A-145.5(c)(1)a. (as amended by S.L. 2025-71, sec. 12) · S.L. 2025-71 (SB 311), sec. 12(b)
Cannabis use and testing
Who it covers: Private employers with three or more regularly employed employees (95-28.2 only)
No cannabis legalization, medical or adult-use. No employment protection for cannabis use. G.S. 95-28.2 protects lawful off-duty use of lawful products (for example tobacco) by private employers with three or more employees; cannabis is not a lawful product in North Carolina, so the statute does not reach it. Hemp-derived THC products are lawful under federal and state hemp law but no employment protection attaches.
Exceptions
- 95-28.2(c)(1): restriction relates to a bona fide occupational requirement
- 95-28.2(c)(2): restriction relates to the fundamental objectives of the organization
Drug and alcohol testing procedures
Who it covers: Any employer or prospective employer doing business in North Carolina that tests applicants or employees, including state, county and municipal employers
The Controlled Substance Examination Regulation Act (G.S. 95-230 to 95-235) sets procedures for any employer that tests applicants or employees for controlled substances. Samples must be collected under sanitary conditions that preserve dignity and prevent substitution, with chain-of-custody procedures. Applicants may be screened with a single-use test device; screens of current employees must be done by an approved laboratory. A positive applicant screen must be confirmed by an approved laboratory using GC/MS or an equivalent method, unless the applicant signs a written waiver. Every positive employee screen must be confirmed the same way. The confirming laboratory must keep part of each confirmed-positive sample for at least 90 days. The examinee may have it retested at the same or another approved laboratory, on written request and at the examinee’s expense. Penalty: up to $250 per affected examinee, capped at $1,000 per Department of Labor investigation. The Act does not require anyone to test.
Exceptions
- 95-235: tests required by the U.S. Department of Transportation or the U.S. Nuclear Regulatory Commission
N.C. Gen. Stat. 95-230 · N.C. Gen. Stat. 95-232(c)(2) · N.C. Gen. Stat. 95-232(c1) · N.C. Gen. Stat. 95-232(d) · N.C. Gen. Stat. 95-232(f) · N.C. Gen. Stat. 95-232(c)(1) · N.C. Gen. Stat. 95-232(c1) · N.C. Gen. Stat. 95-232(d) · N.C. Gen. Stat. 95-234(a) · N.C. Gen. Stat. 95-235
Where federal law alone applies
We found no North Carolina rule for private employers on these topics. The FCRA and other federal laws still apply.
- Criminal history questions
- Limits on what a report includes
- Credit checks
- Salary history
- State consumer reporting law
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 North Carolina 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, North Carolina sets these for each new hire.
- State withholding. Have each new hire complete Form NC-4 (or NC-4 EZ); without it, withhold as Single with no allowances. Form NC-4
- New hire report. Report each new hire to North Carolina within 20 days. State new hire reporting
- Notices at hire. Written notice of promised wages and the day and place for payment.
- E-Verify. Employers with 25 or more NC employees must run each new hire through E-Verify after hiring and keep the verification record while the person is employed and one year after. Employees whose term is under nine months in a calendar year are excluded.
Build the new hire checklist for North Carolina, with city rules, special cases and a due date for each item.
Sources
- N.C. Gen. Stat. 15A-153(c)
- N.C. Gen. Stat. 15A-146(a4)
- N.C. Gen. Stat. 15A-145.5(c)(1)a. (as amended by S.L. 2025-71, sec. 12)
- S.L. 2025-71 (SB 311), sec. 12(b)
- N.C. Gen. Stat. 95-28.2(b)
- N.C. Gen. Stat. 95-230
Last reviewed · General information, not legal advice.
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.