Hiring across multiple states can be a growth milestone for a business, but it also introduces a web of background check compliance requirements that can’t be ignored. Every state, and in some cases individual cities or counties, may have their own rules about what you can check, when you can check it, and how you must handle the results.

Failing to comply can lead to fines, lawsuits, and reputational damage. The good news? With a clear compliance checklist, you can reduce your risk and streamline hiring across jurisdictions.

Why Multi-State Compliance is So Complex

Even companies that understand federal laws like the Fair Credit Reporting Act (FCRA) can run into trouble when they overlook local regulations. For example:

Ban-the-Box Laws: Many jurisdictions restrict when you can ask about criminal history.
Salary History Bans: Some states prohibit asking about an applicant’s past pay.
Specific Disclosure Requirements: Certain areas require unique wording in consent forms.
Adverse Action Rules: Timeframes and notification requirements can vary by location.

Your Multi-State Compliance Checklist

Here’s a foundation to build on. Always verify requirements in the states where you hire:

Know Your Jurisdictions
- List every state (and major city) where you hire employees.
- Track any local ordinances affecting background checks.
Review Federal Requirements First
- Ensure FCRA compliance in all screening processes.
- Use consistent, legally vetted forms across the company.
Understand Local Timing Rules
- Identify which locations have Ban-the-Box or Fair Chance laws.
- Adjust your screening steps accordingly.
Check Consent and Disclosure Language
- Customize forms to meet state or city specific language requirements.
- Avoid combining disclosures with unrelated statements unless allowed.
Train HR and Hiring Managers
- Provide clear guidance on what can and can’t be discussed in interviews.
- Make sure everyone knows the process for each location.
Document and Audit
- Keep records of compliance actions for each hire.
- Review policies annually to stay current with changing laws.

Staying Ahead of the Curve

Laws can change quickly. Partnering with a knowledgeable background check provider ensures you receive updates on regulatory shifts, so you’re never caught off guard. Compliance is not just about avoiding penalties, it’s about showing applicants that your hiring process is fair, consistent, and trustworthy.

Need Help with Background Checks or Compliance?

Whether you’re hiring new talent or updating your screening processes, the Swailes Background Check team is here to help. From criminal background checks and FCRA compliance to drug testing, employment and education verifications, MVR reports, credit history reviews, and Social Security number validation, we provide fast enrollment and expert support every step of the way.