An Employer’s Guide to Montana Background Checks

This guide covers what Montana background checks include, how far back they go, how long they take, and the key laws every employer needs to know.

What Is a Montana Background Check?

It’s likely that if you’re involved in the hiring process, you’ll be interested in what goes into a background check in Montana. Understandably, you want to get the best employee possible and retain your company’s culture, which is why it’s important to clarify, verify, and establish crucial components of a prospective employee’s background before you hire them.

From criminal background checks to simply educational verification, it’s vital that you know what goes into each type of background check depending on the industry you work within.

While they can be conducted yourself, a background check in Montana involves searching through different databases as well as contacting different departments or organizations to verify qualifications, education, and other important details.

So, before diving in, you must understand all the laws and legislation that accompany the process to avoid any accidental illegalities.

What Does a Background Check Show in Montana?

What a background check consists of largely depends on what information you need verification or reassurance on. 

For example, if the job role you’re hiring for hinges on specific academic qualifications, then you must conduct an education verification. Whereas, in this specific role, a driving record check might be less applicable. 

• Criminal History — A criminal history check involves looking into the prospective employee’s criminal records to see if they have any listed misdemeanors or felonies, pending sentences, or reported incarcerations. Doing this can help protect your company culture as well as ensure that you hire the right candidate for the job. Second chance laws are vital to reduce recidivism, so any criminal record found needs to be discussed with the candidate. 
• Employment Verification — A huge part of a candidate’s readiness to take on a role comes from their previous employment experience. While not all previous employment roles need to be exactly suited to the new role, the transferable skills are hugely important to ensuring that you’re hiring the best employee. That’s why employment verification involves contacting previous employers to get clarification of previous employment companies, job roles, and sometimes role responsibilities. 
• Education Verification — Education verification involves looking into the prospective employee’s previous educational history. This includes listing previous schools or colleges that they attended and diplomas or other qualifications that were attained during that time. 
• Driving Record Check — Not all job roles will need a driving records check conducted; however, for those roles that do involve driving under the company name, it’s essential. While in recent years driving fatalities have decreased, accidents still happen, and mitigating the risks of an accident is crucial to avoiding costly insurance claims further down the line. That’s why a driving record check will show information such as any traffic violations, accidents, DUI convictions, or points on the candidate’s license. 
• Credit Records — Credit records can be particularly important to understand your prospective employee’s financial responsibility. In particular, if the prospective employee is likely to be representing the company or handling company finances, it’s understandable to seek extra reassurance. It’s vital to communicate to prospective employees that a credit records check doesn’t reveal their credit score, nor does it affect it. 

How Far Back Does Montana Go on Background Checks?

How far back a background check goes is all related to local and federal laws that dictate what information can and cannot be revealed in a background check. 

The main federal law governing background check reporting is the Fair Credit Reporting Act (FCRA). Under the FCRA, certain non-conviction information, including lawsuits, judgments, liens, debts, and arrests, is generally subject to a seven-year reporting period. However, the FCRA provides an exemption for positions with an annual salary of $75,000 or more, meaning these federal time restrictions may not apply to those roles.

However, Montana law imposes a stricter requirement. Under Montana Code Annotated (MCA) § 31-3-112, consumer reporting agencies are prohibited from reporting criminal convictions that are more than seven years old, regardless of the position’s salary. Unlike the federal FCRA, Montana law does not provide a salary-based exception for criminal or non-criminal searches.

This means that even when a position pays $75,000 or more, Montana’s seven-year reporting restriction still applies. Employers conducting background checks in Montana must therefore follow the more restrictive state requirement when applicable.

It is also important to distinguish criminal and non-criminal background information from employment and education verification. Employment and education records are not subject to the FCRA’s seven-year reporting limitation in the same way, so relevant verification information may generally be reported regardless of the position’s salary.

How Long Does a Montana Background Check Take?

When considering how long it takes to conduct a background check, you need to think about the two leading factors: whether you are doing this independently and the type of background check you want to conduct. 

For the latter, the more thorough the background check, the longer it’s likely to take to ensure that all the necessary information is included. 

It’s possible to get the information you need without enlisting the help of background check expertise. However, this can be lengthy and stressful, as you’ll need to search through unfamiliar databases to find the information you need, researching and contacting the relevant companies directly. 

That's why ScoutLogic's dedicated Scouts handle the entire process from start to finish, so you're not navigating complex databases and can stay focused on finding the right candidate.

Montana Background Check Laws & Requirements

The following is an overview of key laws and is not exhaustive legal advice. Employers are encouraged to consult legal counsel for guidance specific to their situation.

FCRA

The federal law governing background checks is the Fair Credit Reporting Act (FCRA). It establishes requirements for obtaining and using background check information, as well as federal limits on how certain information may be reported.

Under 15 U.S.C. § 1681c, certain non-conviction information, such as arrests and indictments that did not result in a conviction, is generally subject to a seven-year reporting limit. However, criminal convictions may generally be reported indefinitely under federal law, regardless of the position’s salary. The FCRA also includes a salary-based exemption for certain reporting restrictions for positions paying $75,000 or more.

For employers hiring in Montana, state law imposes a stricter reporting requirement. Under Montana Code Annotated (MCA) § 31-3-112(5), consumer reporting agencies are prohibited from reporting records of an arrest, indictment, or conviction of a crime that is more than seven years old, measured from the date of disposition, release, or parole. Unlike federal law, Montana does not provide a $75,000 salary exception to this limitation. Therefore, the seven-year reporting restriction applies regardless of the salary associated with the position

The FCRA also establishes important requirements for the background screening process. Before obtaining a background check from a consumer reporting agency, employers generally must provide the required disclosures and obtain the prospective employee’s written authorization.

If the background check may lead to an adverse employment decision, employers must follow the FCRA adverse action process. This generally includes providing the candidate with a copy of the report and the required Summary of Rights, giving them an opportunity to dispute potentially inaccurate or incomplete information, and completing the required steps before making a final adverse decision.

Employers should also be aware that expunged or sealed records may be subject to different reporting and disclosure rules. Candidates generally should not be required to disclose records that have been legally expunged or sealed when applicable law prohibits their use or disclosure, and properly removed records should not appear in compliant background reports.

Following both federal and applicable state requirements is essential to conducting background checks lawfully and protecting both employers and candidates.

The Montana Human Rights Act

This state law aims to prevent unfair discrimination against candidates in employment, housing, and education, protecting prospective employees from discrimination based on race, sex, age, disability, or religion.

Reporting Limitations

If you are looking to employ someone for your Montana-based company, it’s important to understand that Montana has its own laws when it comes to the reporting of information on background checks. 

While the FCRA's 7-year rule applies to non-conviction records (such as arrests that did not lead to a conviction) and certain non-criminal adverse items (such as civil judgments and debt collections) when the position pays less than $75,000 annually, Montana imposes an additional restriction. Under Montana law, arrests, indictments, and convictions are limited to the past seven years, regardless of the salary associated with the position.

Social Media Privacy Law

While this isn’t a federal law, the state law on social media privacy is vital to understand. 

Montana's social media privacy law generally prohibits employers from requesting access to a candidate's social media accounts, including passwords or usernames. This helps prohibit employers from making discriminatory judgments on a prospective employee prior to hiring them for their skills and previous experience.

Final Thoughts

Conducting a background check in Montana is an essential part of the hiring process and is best obtained as soon as it’s legally possible. 

However, conducting this research on your own can be time-consuming, lengthy, and often stressful because it involves searching through a lot of unfamiliar databases. 

That’s why it’s best to enlist the help of professionals in Montana to ensure that the process is efficient; it also gives you a chance to focus on your onboarding processes while ScoutLogic takes care of the rest. 

For employers who want a faster, compliant screening process without the administrative burden, ScoutLogic's background check services are built to handle it. Explore ScoutLogic's background check services to get started.