If you’re starting or refining an employment screening program in Texas, it’s essential to align your policies with both state and federal laws. Understanding what information you can legally consider and what you can’t will help your business stay compliant, avoid lawsuits, and make fair, informed hiring decisions.
Here are two key areas of focus: the Texas seven-year rule and the appropriate use of arrest vs. conviction records.
The Seven-Year Rule in Texas
Under Texas law, background check providers, formally known as Credit Reporting Agencies (CRAs), are generally limited to reporting criminal history information that’s no more than seven years old. This rule helps ensure that older offenses don’t unfairly impact employment opportunities.
However, there are important exceptions:
- If the role pays more than $75,000 per year, employers may review the applicant’s full criminal history from age 18 onward.
- The seven-year limit does not apply to certain industries, including:
- Insurance roles
- Positions with state or local government agencies
- In-home service and residential delivery companies
You can find more details in the Texas Civil Practice and Remedies Code. For complex situations or evolving case law, it’s best to consult legal counsel to ensure full compliance.
Arrest Records vs. Conviction Records
A common misconception is that employers can consider any criminal record, including arrests, in hiring decisions. However, the law draws a clear distinction.
- Convictions (e.g., guilty verdicts or pleas) are generally permissible to consider.
- Arrests (with no conviction) are much more sensitive and legally risky to use.
While Texas does not have a statewide law explicitly banning the use of arrest records in hiring, federal guidelines from the Equal Employment Opportunity Commission (EEOC) strongly caution against it.
Why? Because relying on arrest records may have a disparate impact, particularly on Black and Hispanic applicants, potentially violating Title VII of the Civil Rights Act. Additionally, individuals are presumed innocent until proven guilty, so using arrests as a basis for rejection may be seen as both unfair and discriminatory.
Best Practices for Texas Employers
To stay compliant and protect your organization, consider these steps:
- Focus hiring decisions on relevant conviction records, not arrests.
- Understand the seven-year rule and its exceptions based on role and compensation.
- Partner with a reputable, FCRA-compliant background screening provider.
- Review your hiring policy regularly to reflect current state and federal guidance.
Hiring in Texas means balancing opportunity with responsibility. By staying informed and applying criminal history information carefully and legally, you can make smarter, fairer hiring decisions without exposing your company to unnecessary risk.
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.
Contact us today to streamline your screening process with confidence.