Texas Background Check Laws for Employers: The 7-Year Rule, Fair Chance Hiring and DPS Records

The short answer

Texas employers follow the federal Fair Credit Reporting Act plus a short list of Texas rules. The biggest one is the Texas 7-year rule: a background screening company generally may not report arrests, indictments or convictions whose disposition, release or parole date is more than seven years old, unless the job pays, or is reasonably expected to pay, $75,000 a year or more (Tex. Bus. & Com. Code §20.05). Texas has no statewide ban-the-box law for private employers. Austin's local fair chance ordinance is still on the books but its enforceability is in dispute. Texas DPS conviction and deferred adjudication records are public, and records under an expunction or nondisclosure order may not be reported.

This guide covers Texas-specific rules only. For the federal basics of disclosure and authorization, see our FCRA basics primer. For a nationwide view of fair chance laws, see our ban-the-box guide.

1. The Texas 7-year reporting limit (Bus. & Com. Code §20.05)

Chapter 20 of the Texas Business and Commerce Code regulates consumer reporting agencies, which includes background screening companies. Section 20.05(a) says a consumer reporting agency may not furnish a consumer report containing, among other things:

“a record of arrest, indictment, or conviction of a crime in which the date of disposition, release, or parole predates the consumer report by more than seven years” (§20.05(a)(4));
a suit or judgment entered more than seven years before the report, or beyond the governing statute of limitations, whichever is longer (§20.05(a)(2));
a bankruptcy case more than 10 years old (§20.05(a)(1)); and
another item or event that predates the report by more than seven years (§20.05(a)(6)).

The salary exception

Section 20.05(b)(3) lifts those limits when the information is provided in connection with “the employment of a consumer at an annual salary that is or may reasonably be expected to be $75,000 or more.” For those roles, older records can be reported, subject to federal law and any other restriction.

How it differs from the federal rule

The federal FCRA's seven-year limit (15 U.S.C. 1681c) does not apply to criminal convictions; it applies to arrests and other non-conviction items. The Texas statute's text covers convictions too, measured from the date of disposition, release or parole. Texas's definition of “consumer” is an individual who resides in Texas (§20.01(2)). How the state and federal rules interact for a particular report can be a legal question, so screening companies and employers often apply the stricter Texas reading for Texas residents in roles under the salary threshold.

Practical effect: for a Texas resident applying for a job expected to pay under $75,000 a year, expect older criminal records to be left off the report. Set your hiring policy with that in mind rather than assuming a lifetime lookback.

Medical information

Section 20.05(c) also bars a consumer reporting agency from furnishing medical information in a report obtained for employment purposes unless the consumer consents.

2. Fair chance hiring in Texas: no state law, a contested Austin ordinance

Statewide

Texas has no statewide law restricting when private employers may ask about criminal history. Private employers in most of the state can lawfully include a criminal history question on an application, though many choose to wait until later in the process. Federal EEOC guidance on the use of criminal records still applies.

Austin

The City of Austin's Fair Chance Hiring Ordinance took effect April 4, 2016. The city describes it as placing restrictions on certain private employers on when they can ask about an applicant's criminal history and how that information can be used, with complaints handled by the city's Office of Civil Rights.

In 2023 the Legislature passed HB 2127, the Texas Regulatory Consistency Act. It added Texas Labor Code Section 1.005, which says a city or county may not adopt, enforce or maintain a rule regulating conduct in a field the Labor Code occupies, and lists “hiring practices” as part of that field for employers other than a city or county. Several cities challenged the law. A state appeals court dismissed their challenge in 2025 without deciding whether the law is constitutional, and further appeals were pending as of this writing.

Bottom line: the Austin ordinance has not been repealed and the city still describes enforcement on its website, but a state statute says local hiring-practice rules are void. Employers with Austin workers should talk to counsel, and many simply follow the ordinance's timing as a conservative practice.

3. Texas DPS criminal history records

The Texas Department of Public Safety (DPS) is the state's central repository for criminal history. Under Chapter 66 of the Code of Criminal Procedure, its Computerized Criminal History (CCH) system holds arrest, prosecution and disposition information for offenses of Class B misdemeanor or greater, as reported by Texas criminal justice agencies.

Public access: Texas Government Code §411.135 entitles any person to obtain DPS criminal history record information that relates to a conviction or a grant of deferred adjudication, including related arrest information. DPS provides this through its public Criminal History Conviction Name Search.
Name-based limits: DPS notes that a “no record” result based on the identifiers submitted does not guarantee the person has no record under other identifiers.
Texas only: DPS data covers records reported by Texas agencies. It will not show out-of-state cases.
Secure site: fuller access, including fingerprint-based results, is limited to entities the Legislature has authorized, such as certain schools, healthcare providers and government employers.

Because reporting to the state can be incomplete or delayed, a Texas statewide search works best alongside county criminal searches in the counties where the applicant has lived. Our guide to types of criminal background checks explains how the searches fit together.

4. Expunctions and orders of nondisclosure

Texas offers two main ways to limit access to a criminal record, and both affect background checks:

Rule	What it says	Source
Applicant disclosure	A person whose record is subject to an order of nondisclosure is not required to state on an employment application that they were the subject of the related criminal proceeding.	Gov't Code §411.0755
Screening company duty	A private entity that compiles and sells criminal history information must destroy, and may not disseminate, information it has been notified is subject to an expunction order or an order of nondisclosure.	Gov't Code §411.0851(a)
Liability	A private entity that disseminates information in violation of §411.0851 is liable for resulting damages, plus court costs and attorney's fees.	Gov't Code §411.0851(c)

For employers, this means a sealed or expunged record should not appear on a compliant report, and an applicant who answers “no” about a nondisclosed matter is within their rights.

5. Negligent hiring protection (Civ. Prac. & Rem. Code §142.002)

Texas limits negligent hiring lawsuits based only on an employee's criminal record. Section 142.002(a) says a cause of action may not be brought against an employer “solely for negligently hiring or failing to adequately supervise an employee, based on evidence that the employee has been convicted of an offense.”

The protection does not apply when the employer knew or should have known of the conviction and the offense was:

committed while performing duties, or under conditions, substantially similar to those of the job;
an offense listed in Article 42A.054 of the Code of Criminal Procedure; or
a sexually violent offense as defined by Article 62.001 of the Code of Criminal Procedure.

It also does not apply in certain suits over misuse of others' funds or property when the employee had a prior fraud-related conviction and the job foreseeably involved fiduciary duties (§142.002(c)). In other words, screening still matters: the safe harbor is narrowest exactly where the job risk is highest.

A Texas screening checklist

Use the federal standalone disclosure and written authorization for every applicant.
Decide each role's expected annual salary, since it controls whether the Texas 7-year limit applies.
Search county courts where the applicant has lived, plus a Texas statewide search and a national criminal database search.
Add role-specific checks such as MVR checks for drivers (state fees may apply) or healthcare sanctions checks.
If you hire in Austin, get counsel's view on the Fair Chance Hiring Ordinance and set your timing accordingly.
Apply the same job-related standards to every candidate in the same role and keep records of your process.

SaffHire is headquartered in Frisco, TX and screens Nationwide. See our Frisco, TX background screening page, criminal background checks, national criminal database search and MVR checks.

Frequently Asked Questions

How far back can a background check go in Texas?

Under Texas Business and Commerce Code Section 20.05, a consumer reporting agency generally may not report a record of arrest, indictment or conviction when the date of disposition, release or parole is more than seven years before the report. The limit does not apply when the job's annual salary is, or is reasonably expected to be, $75,000 or more. Federal law and other exceptions can also apply.

Does Texas have a ban-the-box law for private employers?

Texas has no statewide ban-the-box law for private employers. The City of Austin adopted a Fair Chance Hiring Ordinance in 2016 that covers certain private employers, but a 2023 state law, Texas Labor Code Section 1.005, declares local rules on private employer hiring practices void, and litigation over that law is ongoing. Employers in Austin should get legal advice on the current status.

Can employers in Texas search Texas DPS criminal history records?

Yes, in part. Under Texas Government Code Section 411.135, conviction and deferred adjudication records maintained by the Texas Department of Public Safety are public and anyone can obtain them through the DPS public site. Broader access through the DPS secure site is limited to entities the Legislature has specifically authorized.

What happens if a Texas record has been sealed by an order of nondisclosure?

A person with an order of nondisclosure does not have to disclose the related criminal proceeding on an employment application (Texas Government Code Section 411.0755). A private company that sells criminal history information must destroy and may not disseminate records it has been notified are subject to an expunction or nondisclosure order (Section 411.0851).

Does Texas law protect employers who hire people with criminal records?

Texas Civil Practice and Remedies Code Section 142.002 limits negligent hiring claims brought solely because an employee has a criminal conviction. The protection has exceptions, for example where the employer knew or should have known of a conviction for an offense committed in a substantially similar job, or for certain serious violent or sexually violent offenses.

Sources

Work with SaffHire

SaffHire is a Veteran-Owned background screening company based in Frisco, TX, serving employers Nationwide. It was founded by Robert Krebsbach, John Waak and Jody Thigpen. There are no minimums and no setup fees, data is protected with bank-level encryption, and the employer portal is available 24/7.

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This article is general information, not legal advice. Talk to your employment counsel about your specific situation.