Review background screening laws in Texas. Find out what hiring regulations apply to your Texas organization.
What Texas laws regulate employment background checks?
Texas employment screening regulations include restrictions on the timing of criminal inquiries, frames of searchability, trade requirements, and use of AI. They create a framework that takes consideration and a trusted screening partner to navigate. This article will cover relevant governing legislation, the limits of record retrieval, profession-specific mandates, and AI in hiring.
Key Takeaways
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Texas has a robust collection of rulings that affect background screening, requiring planning and thorough knowledge of applicable laws during hiring.
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The state limits the reportable time frames of some records and the conditions in which employers can screen candidates.
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Use of AI systems in hiring is highly scrutinized for fear of introducing bias, intentional or otherwise.
What limits apply to reporting criminal records in Texas?
Limits applied to reporting criminal records in Texas consist of a mix of Fair Chance restrictions, commerce codes, overlapping Acts, and multiple industry-specific laws. This web of laws can be confusing to parse, so we’re breaking them down here:
Texas Regulatory Consistency Act (TRCA)
Passed in 2023, House Bill 2127 overrode a previous ruling that allowed municipalities to designate when criminal history inquiries could be made in the hiring process. This bill asserts that employers must adhere to statewide rules versus local laws when they conflict.
Fair Hiring Restrictions
To clarify criminal history procedures at the state level, House Bill 2466 later introduced a new ban-the-box law in Texas. As of April 15, 2026, the bill has been sent to a subcommittee. If passed, this would to all public employers and private employers with 15 employees or more. Two conditions must be met to request a criminal history record:
Forbes notes that no provisions are made for freelance or contract labor, making independent professionals and gig workers exempt. Additional exemptions are made where state or federal law require background checks early in the hiring process.
Texas Business & Commerce Code § 20.05
This section of Chapter 20 places limits on lookback timeframes related to criminal history searches. So how far back can background checks go in Texas? That depends on the type of record:
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Federally-declared bankruptcies are capped at a ten-year timeframe.
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Paid tax liens, civil lawsuits and judgements, medical collections, and arrest, indictment, or conviction records cannot be reported past seven years.
These restrictions don’t apply to job roles with a yearly salary of $75,000 or more. In such cases, employers may be provided with criminal history past those timeframes.
Industry-Specific Screening Mandates
The state of Texas regulates criminal history screening in various occupations. Below are a few prominent examples. For a full list, visit the Texas State Law Library.
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Texas Human Resources Code § 42.056 mandates background checks for licensed childcare facility or family home staff. This mandate also applies to prospective foster and adoptive parents, in addition to persons over 14 years of age residing in such homes.
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Texas Education Code § 44.034 necessitates the screening of contractors that access school districts. Individuals or businesses are required to report the details of felony conviction findings to the district for determination of contract termination.
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The Civil Practice & Remedies Code, in sections § 145.002–145.004, declares that in-home service companies shall screen individuals before sending them into personal residences. Employers falling under this designation include companies offering appliance repair, HVAC, plumbing, or electrical services.
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The TFC requires contractors and subcontractors to be vetted for on-site work at state-owned properties. Individuals may be permanently disqualified if convictions or deferred adjudications are found relating to Texas Penal Code violations.
Does Texas enforce any regulations for AI in employment?
As of January 1, 2026, the Texas Responsible Artificial Intelligence Governance Act (TRAIGA) went into effect. Following California, Colorado, and Utah, Texas House Bill 149 establishes a governing body and creates a framework for the use of Artificial Intelligence (AI) systems in business. For employers, this means that intent matters when deploying such systems to automate candidate viability for job placement. If intentional discrimination against protected classes or political viewpoints is found, the organization can incur high financial and administrative penalties.
