Denver Background Checks: An Employer’s Guide [2025]

Comprehensive pre-employment background checks enable businesses in Denver, Colorado, to hire qualified candidates while ensuring compliance with state and federal laws.

At iprospectcheck, we specialize in providing accurate, legally compliant background screening solutions for companies across Denver and throughout Colorado.

This guide outlines the key requirements and best practices for conducting employment background checks in Denver while maintaining compliance with state and federal laws.

What Is a Denver Employment Background Check?

A Denver employment background check reviews a job candidate’s criminal history, education, work experience, professional certifications, and other key details to determine their suitability for a role.

Employers in Colorado use these screenings to confirm applicant information and ensure hiring decisions are based on verified data rather than just resume claims.

Why Do Employers in Denver Conduct Background Checks?

Employers in Denver conduct background checks for several key reasons:

1. Ensure Workplace Safety

Background checks help Denver businesses identify potential risks by uncovering criminal records or past behavior that may pose a safety concern for employees, clients, or the public.

Screening candidates for relevant offenses can help ensure a safer work environment.

2. Support Fair Hiring Practices

A standardized background check process allows employers to evaluate all candidates fairly while minimizing the impact of unconscious bias in hiring decisions.

Following consistent screening procedures promotes equal employment opportunities while reducing legal risks.

3. Comply with Regulations

Employers in Denver, Colorado, must follow federal, state, and industry-specific laws related to background checks.

For instance, employers governed by the U.S. Department of Transportation (DOT) are required to conduct DOT background checks and DOT drug testing for applicants in safety-sensitive positions.

Denver’s largest industries, including aerospace, healthcare, and transportation, enforce strict screening standards. For example:

• Lockheed Martin requires federal security clearance screenings for sensitive positions.
• Denver International Airport (DEN) mandates TSA security threat assessments and fingerprint-based background checks.
• Denver Health requires pre-employment screenings to protect patient safety.

4. Reduce Negligent Hiring Risks

Employers who fail to conduct proper background checks may face legal liability if an unvetted hire causes harm in the workplace.

Comprehensive background screenings demonstrate due diligence, which helps to protect businesses from negligent hiring lawsuits.

5. Build Trust with Clients

Many job roles require employees to handle sensitive customer information in the finance, healthcare, legal, and other industries.

Background checks help employers confirm a candidate’s integrity and ensure they can responsibly manage confidential data, which helps reduce risks of fraud or security breaches.

6. Protect Corporate Reputation

Employees represent their company, particularly in public-facing roles.

Thorough screenings help employers avoid hiring individuals with a history of misconduct that could negatively impact the company’s reputation or customer trust.

What Information Appears on a Denver Background Check?

The details included in an employment background check in Denver depend on the specific screenings requested.

These often include:

Criminal History

If a candidate has a criminal conviction or an open case, a criminal background check may reveal:

• Criminal case number
• Jurisdiction
• Date of the offense
• Nature of the charges
• Classification level (misdemeanor or felony)
• Case disposition
• Disposition date
• Sentence (if applicable)

Employers should not automatically reject candidates based on criminal records.

Instead, each case should be evaluated based on its relevance to the job’s responsibilities and workplace safety.

Additionally, consumer reporting agencies (CRAs) cannot disclose sealed, expunged, or pardoned records.

Employment Verification

Employment verification confirms a candidate’s work experience, including:

• Company names and locations
• Employment start and end dates
• Job titles and positions held

Employers use this screening to ensure that candidates have accurately reported their work history and to identify any unexplained employment gaps.

Education Verification

Education verification ensures that candidates meet the academic qualifications for a position. This screening includes:

• Institution name(s) and location(s)
• Enrollment periods
• Degrees or diplomas earned

This step helps employers verify that applicants have accurately listed their educational credentials.

Professional License Verification

For roles requiring certification, professional license verification provides details such as:

• License validity
• License type
• License number
• Issuing organization
• Issuance and expiration dates
• Public disciplinary records

This process ensures that candidates in regulated industries hold the proper credentials for their positions.

Identity Verification

Identity verification confirms a candidate’s identity and provides jurisdictional insights for further screenings. It includes:

• Full legal name and aliases
• Address history
• Date of birth

This check helps ensure background screenings are conducted on the correct individual.

Motor Vehicle Records (MVR) Check

MVR background checks provide detailed insights into a candidate’s driving history, including:

• Driver’s license number
• License class
• Issuance and expiration dates
• Legal name and registered address
• Traffic infractions and major traffic crimes
• License suspensions or revocations

For roles that require driving, MVR checks help confirm that candidates are safe, responsible drivers and meet insurance eligibility requirements.

Important Laws and Regulations

Federal Laws

Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA) is a federal statute designed to protect consumer privacy by overseeing how consumer reporting agencies (CRAs) collect, maintain, and distribute background check data. It also regulates how employers use these reports when making hiring decisions.

Under the FCRA, CRAs are prohibited from reporting certain types of information older than seven years for job roles with salaries below $75,000 annually, including:

• Arrests that did not lead to convictions
• Paid tax liens
• Civil judgments
• Civil lawsuits
• Chapter 13 bankruptcies (Chapter 7 bankruptcies can be reported for up to 10 years)
• Debt collection accounts

Employers must provide candidates with a clear and separate disclosure form that outlines the background check process.

Additionally, employers are required to secure written authorization from candidates before conducting a background check.

If a hiring decision is negatively impacted by the findings of a background check, the employer must adhere to the FCRA’s adverse action process before making the decision final.

Fair Chance to Compete for Jobs Act

The Fair Chance to Compete for Jobs Act (FCA) restricts federal employers and contractors from asking about a candidate’s criminal record until after a conditional job offer has been extended.

Federal agencies are also prohibited from granting contracts to businesses that violate the FCA by inquiring about criminal history before providing a conditional employment offer.

Title VII of the Civil Rights Act of 1964

Title VII makes it unlawful for employers to discriminate in hiring, employment, or termination decisions based on protected characteristics, including race, gender, religion, color, and national origin.

The Equal Employment Opportunity Commission (EEOC) enforces this law and provides enforcement guidance on evaluating criminal record information found in background checks.

Before rejecting a candidate based on a criminal conviction, employers must perform an individualized assessment, taking into account the relevance of the offense to the job role and any potential implications for workplace safety.

Colorado Laws

Ban-the-Box Law for Private Employers

Colorado’s “Chance to Compete” Act (C.R.S. § 8-2-130) limits when employers can ask about an applicant’s criminal background:

• Employers are not allowed to advertise that individuals with criminal records will not be hired.
• Employers cannot include criminal history questions on the initial job application.
• Background checks may be conducted at any stage of the hiring process.

Certain jobs that legally require background checks are exempt from this law.

This regulation ensures that employers first evaluate a candidate’s qualifications before considering any past criminal convictions.

Ban-the-Box Law for Public Employers

A separate ban-the-box law applies to public employers in Colorado, codified under C.R.S. § 24-5-101.

State employers are not permitted to ask about criminal convictions on job applications.

They may only conduct a background check once an applicant has been designated as a finalist.

This law provides exceptions for the following:

• Colorado Department of Corrections
• Law enforcement officers
• Applicants for positions working with vulnerable populations
• Colorado Department of Revenue
• Colorado Department of Public Safety
• Public Employees’ Retirement Association

If an applicant has a conviction, the employer must assess its relevance to the role before making a hiring decision.

Fingerprint-Based Background Checks

Certain industries in Colorado require fingerprint-based background checks to ensure the safety of the workforce and the public.

Childcare workers must complete fingerprint-based checks through both the FBI and the Colorado Bureau of Investigation (CBI) before being hired.

According to C.R.S. § 12-135-502, individuals applying for a mortuary science license must undergo a fingerprint-based criminal history check.

First-time applicants for EMS certification must complete FBI and CBI fingerprinting. However, renewals require fingerprinting only if the applicant has lived outside Colorado within the last three years.

These checks help verify that individuals in sensitive professions meet legal and safety requirements.

Employment Discrimination Laws

The Colorado Anti-Discrimination Act (CADA) prohibits workplace discrimination based on:

• Disability
• Race
• Creed
• Color
• Sex
• Sexual orientation
• Gender identity
• Gender expression
• Religion
• Age
• National origin
• Ancestry

Colorado employers must ensure their hiring policies align with CADA to prevent discrimination in the workplace.

Credit Check Law

Under the Colorado Employment Opportunity Act, there are strict limitations on how employers can use credit history checks in hiring decisions.

Employers generally cannot use a candidate’s credit history unless the information is directly relevant to the position.

Exceptions exist for:

• Banks and financial institutions
• When the report is required by law
• The information substantially relates to the position

Record Sealing and Expungement Laws

Under C.R.S. § 24-72-706, individuals with certain criminal convictions in Colorado may petition to seal their records after a set waiting period:

• Petty offenses – 1 year
• Class 2 or 3 misdemeanors or any drug misdemeanors – 2 years
• Class 1 misdemeanors or Class 4, 5, or 6 felonies – 3 years
• Other eligible felonies – 5 years

Sealed records are not accessible to employers and cannot be used in hiring decisions.

Additionally, C.R.S. § 18-13-122 permits the expungement of some juvenile records and certain marijuana-related offenses.

Once a record is expunged, neither background check providers can’t report it.

Employers can’t base hiring decisions on expunged records even if they learn about them from other sources.

Marijuana and Employment Background Checks

Although recreational marijuana use is legal in Colorado, employers still have the right to enforce drug-free workplace policies:

• Employers may conduct drug tests for marijuana, even if it was consumed legally off-duty.
• Employees can be terminated if they fail a drug test, as marijuana remains illegal under federal law.

However, under C.R.S. § 24-34-402.5, employers cannot discriminate against employees for lawful off-duty conduct unless it directly affects job performance or workplace safety.

Colorado Seven-Year Reporting Rule for Convictions

C.R.S. § 5-18-109(1)(e) limits how long criminal history information can be reported: Convictions, arrests, and indictments older than seven years cannot be included in background checks.

Unlike the Fair Credit Reporting Act (FCRA), this law applies to all jobs, regardless of salary level.

However, the Colorado Clean Slate Act may affect this rule.

Colorado Clean Slate Act

Signed into law in 2022 (C.R.S. § 13-3-117), the Clean Slate Act allows for automatic record sealing once a required period has passed:

• Civil infractions – 4 years
• Petty offenses and misdemeanors – 7 years
• Felony offenses – 10 years

Automatic sealing does not require individuals to petition the court. Once sealed, records cannot be reported. However, violent crimes are not eligible for sealing.

Social Media Privacy Law

Colorado’s social media privacy law (C.R.S. § 8-2-127) restricts employers from the following activities:

• Asking or requiring an applicant or employee to disclose their social media account information or password
• Requiring an applicant or employee to add the employer to their contact lists
• Asking or requiring an applicant or employee to change their privacy settings so the employer can view their social media accounts

Salary History Inquiry Ban

Under the Equal Pay for Equal Work Act in Colorado, employers are prohibited from asking applicants about their salary history or using any pay information they find to determine the salary amount.

They also must inform current employees about job openings and their pay scales.

Local Laws

Denver Ban-the-Box Law

On Oct. 26, 2018, former Denver Mayor Michael Hancock signed Executive Order No. 135, which is a local ban-the-box law.

Under this executive order, all city employers must conduct background checks when hiring.

However, they can’t ask about criminal history on applications and must wait to ask about it or to perform a criminal background check until after they have determined the applicant is otherwise qualified and has been extended a conditional employment offer.

This law includes an exception for positions that require information about criminal history under other laws or regulations.

For those, city employers can inquire about criminal history earlier in the hiring process.

Denver Prevailing Wage Ordinance

Under Council Bill No. 23-1046, the Denver City Council voted to amend Denver Ord. Sec. 20-76 on Aug. 8, 2023.

This law requires contractors and subcontractors that contract with the city of Denver to pay their workers the prevailing wage for their job class as determined in accordance with the federal Davis-Bacon Act.

The city publishes a list of prevailing wages for different professions on the city auditor’s website.

How to Conduct Employment Background Checks in Denver

1. Establish a Screening Policy

Develop a clear background check policy before screening applicants.

Ensure your policy follows federal, Colorado, and local laws, and include details about which roles require background checks.

Outline what HR must do to maintain legal compliance.

Define the step-by-step process HR personnel should follow.

2. Train HR Personnel

Provide thorough training for your hiring team to ensure they understand legal requirements and company policies for conducting background screenings.

3. Provide Candidate Disclosure and Obtain Consent

Use a standalone disclosure form to inform candidates about the background check, following Fair Credit Reporting Act (FCRA) requirements.

Obtain written consent from candidates before proceeding with the screening process.

4. Partner with a Reputable Provider

Work with a trusted background check provider, such as iprospectcheck, to ensure screenings are accurate, legally compliant, and efficient.

5. Time Screenings Appropriately

Under Colorado’s “Chance to Compete” Act (ban-the-box law), employers cannot ask about criminal history on an initial job application.

To comply, conduct background checks only after an applicant has progressed in the hiring process—typically after an interview or a conditional job offer.

This ensures compliance, reduces screening costs, and streamlines hiring.

6. Customize Screenings for the Role

Select background checks tailored to the specific position to avoid unnecessary screenings and costs.

7. Review and Communicate Results

Keep candidates informed during the background check process. Once results are received, review them carefully.

If moving forward with a candidate, communicate the next steps, onboarding details, and start date.

8. Assess Criminal Convictions Individually

If a background check reveals a criminal conviction, evaluate its relevance to the job role and workplace safety before making a hiring decision.

Colorado law and the EEOC require an individualized assessment of convictions rather than automatic disqualification.

9. Follow the Adverse Action Process

If you decide not to hire a candidate based on their background check, follow the FCRA’s adverse action process:

• Send a Pre-Adverse Action Notice: Provide a copy of the background check report and highlight any concerning findings.
• Allow Time for a Response: Give the candidate a chance to dispute inaccuracies or submit evidence of rehabilitation.
• Issue a Final Adverse Action Notice: If you proceed with a rejection, send a final notice including a summary of the candidate’s FCRA rights.

Get a Denver Background Check with iprospectcheck

Denver is home to a diverse range of industries, including aerospace, healthcare, finance, and technology—each with unique compliance and risk management requirements.

At iprospectcheck, we offer accurate, compliant, and tailored background screening solutions to help Denver businesses make confident hiring decisions.

Our expertise ensures thorough and legally compliant reports that meet your industry’s needs.

For more information or a free quote, call us today: 888-509-1979.

DISCLAIMER: The resources provided here are for educational purposes only and do not constitute legal advice. Consult your counsel if you have legal questions related to your specific practices and compliance with applicable laws.