How the 7-Year Limit & State Laws Affect Employment Background Checks

Employers should understand the federal and state laws that restrict what is reported on employment background checks.

The FCRA’s seven-year rule restricts the reporting of certain types of information for jobs paying less than a minimum salary threshold.

Additionally, several states have seven-year restrictions on reporting criminal convictions.

Our strict adherence to the FCRA’s seven-year rule and the rules for reporting convictions in every state make iprospectcheck an invaluable compliance partner.

Here’s everything you need to know about these important laws.

The Fair Credit Reporting Act and Background Checks

The Fair Credit Reporting Act (FCRA) is a federal consumer privacy law that applies to employers in all 50 states.

This law protects consumers’ privacy regarding the information consumer reporting agencies (CRAs) gather and report on credit reports and background checks.

The FCRA includes a seven-year rule that prohibits background check companies from reporting certain types of adverse information that is older than seven years when the position the applicant has applied for pays a salary of less than $75,000 per year, which will be explained below.

When employers learn negative information from background checks and want to deny employment, they must first complete the adverse action process before making a final decision.

What is the FCRA’s Seven-Year Lookback Period?

The FCRA’s seven-year lookback period is codified at 15 U.S.C. § 1681c and restricts CRAs from reporting the following information on an employment background check when the job pays an annual salary under $75,000:

• Arrests that didn’t end in a conviction
• Chapter 13 bankruptcies (10 years for Chapter 7 bankruptcies)
• Debt collection accounts
• Civil lawsuits
• Civil judgments
• Paid tax liens
• Any other adverse information

If a background check provider uncovers any of this type of information while conducting a background check when the job pays less than $75,000 per year, the provider will not report the information to the employer.

Exemptions to the Seven-Year Lookback Period

The FCRA exempts the following information from its seven-year rule:

• Jobs paying annual salaries of $75,000 or more
• Employment history
• Educational attainment
• Professional license information
• Other relevant background information

The Federal Trade Commission (FTC) considers education and employment information to be facially neutral, so they do not fall into the category of any other adverse information.

This means that employers can ask for employment verification, education verification, and professional license verification going back to when the applicant first turned 18.

However, most employers generally only ask for three to seven years of employment verification for practical purposes.

The FCRA also doesn’t restrict CRAs from reporting criminal convictions regardless of how old they might be or the salary of the job for which the applicant has applied.

However, state laws might restrict the reporting of old conviction information as discussed further below.

When Does the Seven Years Start on a Background Check?

Calculating the seven-year lookback period is more complex than it might first appear.

CRAs must use the correct date to start the seven-year clock to avoid violating the FCRA.

Non-Convictions

Non-conviction information about arrests for criminal cases that are still pending can be reported since the case hasn’t yet been disposed.

For those cases, the date of arrest is the date the clock begins to run, and it continues running until the case is disposed.

If the case ultimately results in a conviction, the date of the conviction will be used to calculate the seven years in states that follow the seven-year rule for reporting conviction records.

If an arrest ultimately leads to a dismissal, or the prosecutor chooses not to pursue criminal prosecution, the arrest information cannot be reported since the case was dismissed if the arrest is older than seven years.

In summary, the seven-year period starts to run on the file date for non-conviction arrests.

Convictions

For conviction records, the clock begins to run on the disposition date, release from incarceration, or the start of the individual’s parole in seven-year states. Probation doesn’t count, however.

Instead, if the individual was sentenced to probation, the seven-year clock begins to run from the disposition date rather than the start of probation.

What States Follow the Seven-Year Rule for Convictions?

While the FCRA doesn’t restrict the reporting of criminal conviction records, most states place seven or 10-year limits on the reporting of criminal convictions.

However, 10 states have passed clean slate laws. These laws automatically seal or expunge certain criminal convictions, which prevents CRAs from reporting them.

CRAs can’t report sealed or expunged criminal convictions even if they fall within the state’s criminal conviction reporting rule.

Seven-Year Rule States for Criminal Convictions

California

California prohibits CRAs from reporting convictions older than seven years under Cal. Civ. Code 1786.18(a)(7).

This law also prohibits CRAs from reporting arrests not leading to convictions even if they occurred within the last seven years, but pending cases can be reported.

However, California also has a clean slate law that affects its seven-year rule.

Hawaii

Hawaii has a different lookback period for felonies and misdemeanors as codified in HRS §378-2.5 (a)-(d).

Felony convictions can be reported for seven years, but misdemeanors can only be reported for five years from the date of disposition. Arrests not leading to conviction can’t be reported regardless of whether they occurred within five or seven years of the application date.

Hawaii exempts multiple employers from its rule, including schools, daycares, law enforcement agencies, financial institutions, regulated airport screening companies, state agencies, libraries, and insurance companies.

Kansas

Under KSA 50-704, convictions older than seven years can’t be reported for jobs paying less than $20,000 per year in Kansas.

Since most jobs pay more than $20,000 per year, this law’s scope is limited.

Maryland

Maryland’s law restricting CRAs from reporting convictions older than seven years is found at Md. Code, Com. § 14-1203.

Like Kansas, this law only applies to jobs paying less than $20,000 per year.

Since Maryland’s minimum wage is $12.80 per hour for small employers and $13.25 for large employers as of 2023, this means that any full-time position is exempted from Maryland’s seven-year rule.

Massachusetts

Massachusetts has a seven-year rule restricting CRAs from reporting convictions older than seven years found in M.G.L. ch. 93, § 52(5). This law also prohibits CRAs from reporting arrests no matter their age.

Montana

Montana’s seven-year restriction for reporting convictions on employment background checks is found in MCA 31-3-112.

This law also prohibits CRAs from reporting any arrests that didn’t lead to convictions even if they occurred more recently.

New Hampshire

New Hampshire’s seven-year rule prohibiting the reporting of old convictions is found at N.H. Rev. Stat. § 359-B:5.

Like Maryland and Kansas, however, the state’s rule only applies to jobs paying less than $20,000 per year, so it effectively doesn’t apply to most positions.

New Mexico

New Mexico’s seven-year rule restricting the reporting of old criminal convictions is found at N.M. Stat. § 56-3-6. Under this law, non-conviction criminal records can’t be reported regardless of age.

New York

New York has a seven-year rule restricting CRAs from reporting convictions older than seven years codified at NY Gen. Bus. L. § 380-J.

This law exempts any job that pays an annual salary of at least $25,000 annually. Since New York’s state minimum wage is $14.20 as of 2023, this means that any full-time position is exempt from the seven-year reporting rule.

Washington State

Washington’s law restricting CRAs from reporting criminal convictions older than seven years is found at RCW 19.182.040.

However, like several of the other states with seven-year rules, Washington’s rule only applies to jobs paying salaries of less than $20,000.

Since the minimum wage in Washington State is $15.74 per hour as of 2023, this means that any full-time position is exempt from the state’s seven-year rule for reporting criminal convictions.

Rules for Non-7 Year States for Reporting Convictions

All of the other states allow CRAs to report convictions regardless of age.

However, if a state has a clean slate law, it will affect the reporting of certain criminal conviction information regardless of the state’s seven-year rule.

States With Clean Slate Laws

Clean slate laws automatically expunge or seal certain criminal records once a specific period has elapsed.

Expunged or sealed records can’t be reported no matter how old they are.

California

California’s clean slate law was effective on July 1, 2023.

Under this law, most felonies, misdemeanors, and non-conviction arrests are automatically sealed after four years have passed from the date the individual completed the sentence as long as they haven’t been charged with additional crimes.

This law doesn’t apply to sex offenses requiring registration, any position in K-12 education, serious felony crimes, or violent crimes.

If someone has an old conviction for a serious felony, they can still file a petition with the court to ask for sealing, but the record won’t be automatically sealed.

Colorado

Colorado’s clean slate law will be effective on June 1, 2024.

Under this Colorado law, any arrest not resulting in a conviction will be automatically expunged.

The law also provides for the automatic sealing of criminal convictions on the following schedule:

• Infractions – Four years
• Misdemeanors – Five years
• Certain felonies – 10 years

The lookback period for automatic sealing runs from the date the individual completed their sentence and paid all restitution.

Any crime that falls under the Crime Victims Rights Act is excluded and will not be sealed.

Connecticut

Connecticut has two clean slate laws. One law applies to certain marijuana convictions, and the other applies to other convictions.

The Cannabis Erasure law was effective as of Jan. 1, 2023, and automatically erases criminal convictions for the following marijuana-related crimes:

• Simple possession
• Possession with intent to sell of up to six plants or less than four ounces of marijuana
• Possession of marijuana drug paraphernalia

The Clean Slate law won’t be effective until the state updates its technology. At that time, qualifying misdemeanor convictions will be erased after seven years, and qualifying felonies will be erased after 10 years.

This law excludes sex offenses, domestic violence crimes, class A misdemeanor assault of elderly, pregnant, disabled, or blind victims, Class D felony assault of elderly, pregnant, disabled, or blind victims, Class D felony assault using a firearm, Class A misdemeanor abuse of blind, disabled, or elderly victims, serious felonies, and violent crimes.

This law will give the right to individuals to sue for employment discrimination based on a violation of the Clean Slate Act.

Delaware

Delaware’s clean slate law will be effective beginning on Aug. 1, 2024, and provides for the automatic expungement of certain qualifying convictions.

Automatic expungement will occur in Delaware according to the following schedule:

• Drug possession – Five years
• Other drug crimes – 10 years
• Selling counterfeit controlled substances – 10 years
• Possessing burglary tools – 10 years
• Unauthorized use of a credit or debit card – 10 years

The state provides that DUIs, domestic violence, all felonies other than those previously listed, sex offenses, and crimes of violence can’t be expunged.

Michigan

Michigan’s clean slate law was effective as of April 11, 2021, and automatic record set-asides began on April 11, 2023.

The Michigan clean slate law provides for the following offenses to be automatically set aside once the corresponding period has elapsed:

• Misdemeanors with a sentence up to 92 days – Seven years
• Up to four misdemeanors with a sentence of 93+ days – Seven years
• Up to two eligible felonies – 10 years

The law excludes assaults, crimes of dishonesty, sex offenses, serious misdemeanors, human trafficking, DUIs, CDL violations, vehicular manslaughter, and violent crimes.

New Jersey

New Jersey greatly expanded its expungement laws, which now also include some clean slate provisions.

Once 10 years have passed, a person with a qualifying criminal record can ask the court to expunge everything.

The law also allows certain marijuana convictions to be immediately expunged, including possession with intent to distribute marijuana/hashish, simple possession, and possession of marijuana-related drug paraphernalia.

Oklahoma

Oklahoma’s clean slate law will be effective on Nov. 1, 2025, and will allow certain convictions to be automatically expunged according to the following schedule:

• Non-conviction records – Immediate
• Misdemeanors – One year

Felony convictions in Oklahoma won’t be automatically expunged, but individuals can file petitions to ask the court to expunge the following eligible felony convictions:

• Up to two non-violent/non-sex felonies – 10 years
• Any pardoned felony
• Felonies reclassified as misdemeanors – 30 days
• One non-violent/non-sex felony – Five years

Pennsylvania

Under Pennsylvania’s clean slate law, qualifying criminal convictions are automatically sealed according to the following schedule:

• Non-violent misdemeanors – 10 years
• Summary offenses – 10 years
• Simple assaults – 10 years

Utah

In Utah, the clean slate law provides for the automatic expungement of qualifying criminal records according to the following schedule:

• Infractions – five years
• Class C misdemeanors – five years
• Class B misdemeanors – six years
• Misdemeanor drug possession – seven years

Virginia

In Virginia, the clean slate law will be effective on Oct. 1, 2025. This law provides that the following convictions will be automatically sealed after seven years:

• Minor in possession of alcohol
• Misdemeanor trespass
• Petit larceny
• Misdemeanor marijuana possession
• Misdemeanor marijuana possession with intent to sell
• Disorderly conduct

Individuals can file a petition with the court to ask for expungement of the following convictions, but the expungement won’t be automatic:

• Class 5 or 6 felonies
• Felony larceny

The state doesn’t allow DUIs, domestic violence crimes, DUI maiming, DUI manslaughter, and any Class 1 to Class 4 felony to be expunged.

iprospectcheck: Your Dependable Partner for Compliant Background Checks

Employers and CRAs must comply with the FCRA and state laws when conducting background checks.

Violating the law can lead to serious civil penalties and fines.

At iprospectcheck, we always comply with the FCRA and state laws when we conduct employment background checks and can help your organization maintain compliance.

To get a free employment background check 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.