State law · For employers
Texas background check laws for employers
What Texas 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
4 laws cited
At a glance
The Texas rules on each topic, in one line. Federal law applies to every topic.
| Topic | Texas rule |
|---|---|
| Criminal history questions | No state rule. Federal law applies. |
| Limits on what a report includes | Texas has its own 7-year rule. A consumer reporting agency may not report a record of arrest, indictment, or conviction when the date of disposition, release, or parole is more than seven years before the report. |
| Sealed and expunged records | Texas uses orders of nondisclosure (Gov’t Code ch. 411, subch. E-1), not expungement of convictions. |
| Credit checks | No state rule. Federal law applies. |
| Salary history | No state rule. Federal law applies. |
| Cannabis | No state rule. Federal law applies. |
| Drug testing procedures | No Texas statute constrains private-employer drug-testing procedures. |
| State consumer reporting law | Texas regulates consumer reporting agencies under Bus. & Com. Code ch. 20 (Regulation of Consumer Credit Reporting Agencies). |
What a background check report may include
Who it covers: Consumer reporting agencies and other private sellers of criminal history record information.
In force since: May 31, 2019
Texas has its own 7-year rule. A consumer reporting agency may not report a record of arrest, indictment, or conviction when the date of disposition, release, or parole is more than seven years before the report. The limit does not apply when the report is for employment at an annual salary that is, or is reasonably expected to be, $75,000 or more. Bankruptcies drop after 10 years; suits and judgments after seven years or the limitations period, whichever is longer; paid tax liens and any other item after seven years. Certain medical collection accounts may not be reported. Medical information may not be furnished for employment without the consumer’s consent. Separately, a private company that sells criminal history must destroy and stop disseminating a record once it gets notice of an expunction or nondisclosure order; it is liable for damages, costs, and attorney’s fees if it does not (Gov’t Code 411.0851).
Exceptions
- Employment at an annual salary of $75,000 or more (20.05(b)(3))
- Credit transactions and life insurance of $150,000 or more (20.05(b)(1)-(2))
- Information needed to avoid a violation of 18 U.S.C. 1033 (20.05(b-1))
Tex. Bus. & Com. Code 20.05(a)(4), as amended by S.B. 1037 (86th Leg., 2019), enrolled text · Tex. Bus. & Com. Code 20.05(b)(3) (official statutes file server) · Tex. Gov't Code 411.0851(a)
Sealed and expunged records
Who it covers: All employers; governs what public records show and what an applicant must disclose.
In force since: September 1, 2015
Texas uses orders of nondisclosure (Gov’t Code ch. 411, subch. E-1), not expungement of convictions. A first-time deferred adjudication for most nonviolent misdemeanors gets a nondisclosure order without a petition once the person is discharged and meets 411.074 (411.072). Other categories need a petition and a waiting period. A person with a nondisclosure order need not state on an application for employment, information, or licensing that they were the subject of the proceeding. Certain arrests (acquittals, dismissals, pardons for innocence, some others) can be expunged under Code Crim. Proc. ch. 55A. After a final expunction order, the person may deny the arrest and the order.
Exceptions
- Criminal justice agencies may still give nondisclosed records to listed noncriminal-justice entities, including school districts, private schools, commercial transportation companies, and many licensing boards (411.0765(b))
Tex. Gov't Code 411.0755 · Tex. Gov't Code 411.072(b) · Tex. Code Crim. Proc. art. 55A.401
Drug and alcohol testing procedures
No Texas statute constrains private-employer drug-testing procedures.
We checked this against an unofficial copy of the law. The official text was not freely available online. Check the official code before you rely on it.
The state consumer reporting law
Who it covers: Consumer reporting agencies; users are not given new duties beyond the FCRA.
In force since: October 1, 1997
Texas regulates consumer reporting agencies under Bus. & Com. Code ch. 20 (Regulation of Consumer Credit Reporting Agencies). It lists permissible purposes (including employment), requires written file disclosures and a copy of the file on request, sets the 7-year limits in 20.05, provides a dispute procedure, and gives consumers a civil action with attorney’s fees. It adds no employer disclosure or authorization form beyond the FCRA, no investigative-report rule, and no CRA registration.
Exceptions
- Check verification and check guarantee services are excluded from the CRA definition (20.01(5), 20.021)
Tex. Bus. & Com. Code 20.01(5) · Tex. Bus. & Com. Code 20.03(c) · Tex. Bus. & Com. Code 20.05(a)
Where federal law alone applies
We found no Texas rule for private employers on these topics. The FCRA and other federal laws still apply.
- Criminal history questions
- Credit checks
- Salary history
- Cannabis
Local rules
Some places in Texas add their own rules. A local rule applies on top of the state rule.
- Austin (city). Fair Chance Hiring: employers with 15+ employees in Austin may not ask about criminal history on the application or before a conditional offer; must do an individualized assessment before adverse action and tell the individual in writing that the adverse action rests on criminal history; civil penalty up to $500 per violation; effective April 4, 2016.
Austin Ordinance No. 20160324-019; Austin City Code ch. 4-15 - DeSoto (city). Fair Chance Hiring: employers with 15+ employees in DeSoto may not ask about criminal history on the initial job application; exempt where law or a mandated bond/insurance requirement disqualifies; written warning for a first violation, then up to $500 per violation; effective January 1, 2022.
DeSoto Ordinance No. 2231-21; DeSoto Code art. 4.2100 (URL is the city newsletter announcing the ordinance, not the ordinance text)
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 Texas 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, Texas sets these for each new hire.
- State withholding. No state withholding certificate: Texas has no personal income tax. Collect only the federal Form W-4.
- New hire report. Report each new hire to Texas within 20 days; some independent contractors must be reported too. State new hire reporting
- Notices at hire. Notice to New Employees of workers’ compensation coverage status.
Build the new hire checklist for Texas, with city rules, special cases and a due date for each item.
Sources
- Tex. Bus. & Com. Code 20.05(a)(4), as amended by S.B. 1037 (86th Leg., 2019), enrolled text
- Tex. Bus. & Com. Code 20.05(b)(3) (official statutes file server)
- Tex. Gov’t Code 411.0851(a)
- Tex. Code Crim. Proc. art. 55A.401
- Austin Ordinance No. 20160324-019; Austin City Code ch. 4-15
- DeSoto Ordinance No. 2231-21; DeSoto Code art. 4.2100 (URL is the city newsletter announcing the ordinance, not the ordinance text)
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.