An Employer’s Guide to Colorado Background Checks

Employers use several tools to hire the right people for the job. Background checks are one tool that helps employers evaluate potential hires. These screenings check candidates’ history to determine their qualifications and eligibility for the role.

Background checks return essential information about a potential hire’s criminal, employment, and educational history, among many other things. Employers must understand how these screenings work and the laws that apply before implementing them.

This guide covers everything you need to know about Colorado background checks: what they show, how extensive they are, how long they take, and how regulations affect them.

What Is a Colorado Background Check?

A Colorado background check is a screening tool for examining an applicant or employee’s past. These checks confirm a candidate’s identity and complete a thorough examination of information relevant to the position, including, but not limited to, their criminal, employment, and educational background.

HR personnel often use background checks to screen individuals, but anyone can conduct these screenings to verify someone’s identity or learn more about their history. Employers typically hire a third party to perform these searches. They implement background check programs for several reasons.

Companies typically use background checks while onboarding new hires. They use various searches to confirm an applicant’s identity and investigate their past to make educated hiring decisions. Background checks verify a candidate’s qualifications for a position and show valuable insight outside of what is given on an application.

While most checks occur before hiring, employers also conduct background checks on managerial candidates. Managerial roles require greater responsibility than entry-level positions and, therefore, require more extensive searches.

Applicants for caring professions also require extensive screenings. EMS personnel, caregivers, first responders, and other similar roles work with vulnerable populations such as children and the elderly. To protect these communities, caring professionals need to be thoroughly vetted.

Background checks encourage a safe and efficient workplace, lessen risk, and uphold the company’s reputation. Common searches include criminal background, credit, and education checks. Conducting the proper search for certain positions is vital to hiring highly qualified individuals.

What Does a Background Check Show In Colorado?

Colorado background checks show different information depending on the types of searches conducted. Typical checks include criminal history, education verification, employment verification, driving records, professional license verification, and sex offender registry checks.

• Criminal History: Criminal history checks help employers discover a candidate’s criminal convictions and pending criminal cases. Results show the offense date, type, and severity. Employers use these details to determine if an applicant is ideal for a position.
• Civil Court Checks: Employers conduct civil court checks to find lawsuits, foreclosures, restraining orders, and other civil matters. These types of searches are often performed to fill financial and managerial roles.
• Credit Background Check: Credit background checks examine an applicant’s credit history, including payment history, accounts in collections, and bankruptcies. These checks are typically used for jobs requiring financial responsibility. The instances in which employers can perform credit reports are limited by Colorado law.
• Employment Verification: Employment verification verifies the information an applicant provides regarding their past employment. These searches reveal past employers’ names, addresses, contact information, dates of employment, and held job positions. Employers can see gaps in employment and omitted employers to verify if an applicant has been truthful.
• Education Verification: Education verification confirms the information provided by an applicant regarding their education. These checks show past schools, including each institution’s name, address, contact information, attendance dates, and any degrees, diplomas, or certificates awarded. Employers use education verification to confirm an applicant’s qualifications and whether they have been honest.
• Identity Verification: Employers use identity verification to confirm an applicant’s name, address, Social Security number, and birth date. Identity verification curbs identity theft by proving a candidate is who they claim to be. These checks also reveal if a stolen identity has been used to apply.
• Social Security Number Trace: A Social Security number (SSN) trace shows the date and state an applicant’s SSN was issued, the names and addresses associated with it, and its validity. Employers use this verification to confirm the number belongs to the applicant.
• Professional License Verification: Employers conduct professional license verifications for positions requiring a professional license. This check shows the issue date, license type, expiration date, and license validity. Employers confirm applicants’ qualifications and avoid negligent hiring claims with professional license verifications.
• Sex Offender Registry Search: Sex offender registry searches reveal if an applicant is registered as a sex offender at the time of the search. These checks indicate the individual’s aliases, address, conviction state, and unique characteristics. Employers conduct these searches to fill roles where employees work with vulnerable populations such as children.
• Pre-Employment Drug Test: Many employers implement a pre-employment drug test program to uphold a drug-free environment. These programs typically use 5-panel drug tests that detect amphetamines, cocaine, opiates, PCP, and THC in the examinee’s urine. Drug test results will reveal if an applicant has recently used drugs, not if they have or will abuse substances.
• Motor Vehicle Records Check: Employers conduct Motor Vehicle Records (MVR) checks for positions requiring vehicle operation. MVR checks provide the applicant’s driver’s license information, traffic violations and crimes, and any points or suspensions. Employers use MVR checks to verify a candidate’s driving record and ensure they are qualified and insurable.
• Social Media Checks: Employers can conduct social media checks to gain insight into an applicant’s behavior. While not a typical part of background check programs, social media checks can provide a more relaxed view of an individual in comparison to their application. Be wary of Colorado’s Social Media and the Workplace Law when conducting social media checks.

How Far Back Can a Background Check Go In Colorado?

Under the FCRA, background checks can extend seven years into an applicant’s history for arrests, accounts in collections, civil lawsuits, judgments, and liens. However, there are some conditions.

The seven-year lookback period applies to positions paying less than $75,000 a year, and bankruptcies cannot be reported after ten years. For those paying more, employers can review records ever since the applicant turned eighteen. Information such as employment, education, or professional license can be viewed anytime.

Under C.R.S. § 5-18-109(1)(e), the salary threshold does not apply to arrests, indictments, or convictions. Therefore, after seven years, these types of information cannot be reported in Colorado regardless of the salary being offered.

Under the Clean Slate Act, arrest records without a conviction and other information are automatically sealed. These sealed records will not appear on background checks. Colorado residents can also seek to have other records sealed or expunged.

If an employer comes across a sealed record, they’re advised not to take it into account when considering potential hires. Even when able, employers often do not extend their search past seven years to avoid making decisions based on outdated information.

How Long Does a Colorado Background Check Take?

The turnaround time for Colorado background checks depends on the type of search conducted and its extent. Common background checks yield results in a few hours to a few days.

Conducting background checks on your own can greatly slow down turnaround times. Contacting past employers, sifting through court records, and confirming information can significantly hinder your HR team.

Outsourcing your background checks to a reputable background check company can streamline the process. ScoutLogic boasts an extensive background check program that maximizes efficiency, accuracy, and compliance.

Colorado Background Check Laws & Requirements

Some Colorado employers are required to conduct background checks by law, while others choose to conduct them to maintain a safe workplace. Regardless of the reason, Colorado employers must adhere to federal and state laws when conducting background checks to maintain legal compliance.

Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) is a federal law targeting background check providers reporting information for employment background checks. Enforced by the Federal Trade Commission (FTC), the FCRA protects consumer privacy in the information collected by consumer reporting agencies.

Under the FCRA, CRAs cannot report arrests without a conviction, liens, judgments, or civil lawsuits to jobs paying less than $75,000 annually if they are seven or more years old. They also cannot report ten-year-old bankruptcies. Jobs paying more than $75,000 yearly are exempt.

Consumer reporting agencies can report an applicant’s other background information. Colorado employers working with third parties for background check services must comply with FCRA regulations.

Employers must provide written notification of their intent to perform a background check and receive the applicant’s consent. The FCRA also guides employers when faced with negative information on an applicant’s background check.

Before an employer can refuse an applicant based on background check results, they must complete the adverse action steps and provide the applicant with their FCRA rights.

Title VII of the Civil Rights Act of 1964

Title VII of the Civil Rights Act of 1964 prohibits employers from discriminating against applicants based on race, color, religion, sex, or national origin. The Equal Employment Opportunity Commission (EEOC) enforces this law and advises employers on handling arrest and conviction information found in background check results.

Under the EEOC’s advisement, employers must consider a criminal record individually and compare it to the job description before refusing an applicant based on background check information.

Fair Chance to Compete for Jobs Act

The Fair Chance to Compete for Jobs Act prohibits federal agencies and contractors from requesting criminal history on applications. Affected employers cannot ask about an applicant’s criminal records until after offering conditional employment.

Employers hiring for roles requiring criminal history checks under federal or state law are exempted from this law.

Colorado Chance to Compete Act (C.R.S. § 8-2-130)

The Chance to Compete Act is a ban-the-box law for private employers in Colorado. This law prohibits employers from advertising that they will refuse applicants with criminal records or inquiring about criminal records on applications.

However, employers can access publicly available criminal records at any point.

Credit History Check Law

In Colorado, employers can only require a candidate to consent to a credit history check in the following three instances:

1. The report is being requested by an employer of a bank or financial institution.
2. The report is required by law.
3. The report is directly related to the job position for which the candidate is applying.

Banks and financial institutions must run a credit report, and the information should be used to make hiring decisions. Hiring for an executive, manager, or federal contractor also allows you to request a credit report and use the information in your decision.

Employers must have a genuine purpose for running a credit history check, and consent must be provided to the candidate in written form before any check is conducted. Per the FCRA, employers must complete the adverse action steps if they decide not to hire a candidate based on information found on the credit report.

Colorado’s Seven-Year Rule on Reporting Conviction Records (C.R.S. § 5-18-109(1)(e))

Under C.R.S. § 5-18-109(1)(e), consumer reporting agencies cannot report arrests, indictments, or convictions that predate the check more than seven years from disposition, release, or parole date.

Unlike the FCRA, Colorado’s seven-year rule does not have a salary stipulation.

Colorado Clean Slate Act (SB22-099)

The Clean Slate Act states that arrest records without a conviction are automatically sealed. Other automatically-sealed records include four-year-old civil infractions, seven-year-old petty offenses and misdemeanor convictions, and ten-year-old felony convictions. Violent crimes cannot be sealed under this act.

Consumer reporting agencies cannot report sealed conviction records in background checks. Employers who come across sealed records are advised not to consider them when hiring.

Equal Pay for Equal Work Act (C.R.S. § 8-5-101 et. seq.)

Colorado’s Equal Pay for Equal Work Act prohibits employers from paying employees differently based on gender or a combination of gender and other protected characteristics, such as race or religion. This law also restricts employers from asking applicants about their salary history or using any of their previous salaries to determine what to offer.

Employers must notify current employees about job openings and promotion opportunities with information regarding the pay scales. Employers must also conduct analyses of existing pay inequalities to correct gender-based pay differences.

Name-Based Criminal Records Check Law (C.R.S.§ 12-310-107)

Under C.R.S.§ 12-310-107, applicants who must be registered for professional occupations must submit fingerprints for fingerprint-based screenings. If a fingerprint-based screening reveals an arrest without disposition, the applicant must undergo a name-based search of court records to verify the disposition.

Social Media and the Workplace Law (C.R.S. § 8-2-127)

Colorado’s Social Media and the Workplace Law states that employers are restricted from doing the following:

• Require, ask, or suggest that an applicant or employee share their username, password, or other access method to their social media accounts.
• Compel the applicant or employee to add the employer or employer’s agent as a contact for their personal social media accounts.
• Require, ask, or suggest that an applicant or employee change their privacy settings to allow the employer or employer’s agent to view the social media accounts.

Frequently Asked Questions

What Is the 7-Year Rule for Background Checks in Colorado?

Under C.R.S. § 5-18-109(1)(e), consumer reporting agencies cannot report arrests, indictments, or convictions that are seven years old. Under the FCRA, CRAs cannot report civil lawsuits, judgments, paid tax liens, or medical collections to jobs with annual salaries less than $75,000 until after seven years.

Final Thoughts

Background checks give employers a lot to think about. From choosing what type of search to conduct to knowing what regulations apply, screening potential hires can be overwhelming. Partnering with a qualified consumer reporting agency ensures top-quality results while adhering to rules and regulations.

Streamline your background check process with ScoutLogic. Our screening services cater to your every need, so you have all the information necessary to find high-quality talent and maintain compliance. Request a quote today or learn more about our background check services.

David Garcia

David Garcia, co-founder and CEO of Scout Logic, is an industry leader in the bulk background check world. With his strategic acumen and expertise in the HR sphere, specifically in hiring, recruiting, legal compliance, background checks, and resume screening, he’s an invaluable asset and consultant.

David's counsel extends across the boards of ScoutLogic, YipitData, and Supplier.io, drawing from his impactful stints on the boards of Infutor and Avetta. With an extensive 25-year journey, he champions unparalleled B2B commercial leadership within data & analytics, significantly shaping the HR landscape.