At-a-Glance Compliance Overview

State Mini-FCRA Laws

Colorado maintains a consumer reporting statute that supplements the federal Fair Credit Reporting Act. The law is known as the Colorado Consumer Credit Reporting Act and is codified at C.R.S. §5-18-101 et seq.

This statute regulates consumer reporting agencies operating in the state and establishes requirements governing consumer reports used for employment screening.

Key provisions include:

• obligations requiring consumer reporting agencies to maintain reasonable procedures to ensure report accuracy

• restrictions governing the types of adverse information that may appear in consumer reports

• consumer rights to dispute inaccurate or incomplete information

• procedural requirements for maintaining and furnishing consumer reports.

Employers that obtain background checks from third-party screening providers must ensure that reports comply with both the federal Fair Credit Reporting Act and Colorado’s consumer reporting statute.

Criminal Record Reporting Rules

Colorado law includes provisions governing the reporting of criminal records in consumer reports.

Conviction Records

The federal Fair Credit Reporting Act (FCRA) governs the reporting of criminal convictions in consumer reports.

Under FCRA §605(a)(5), consumer reporting agencies may report records of criminal convictions without a time limitation. As a result, criminal convictions may appear in employment background reports regardless of age.

Non-Conviction Records

The FCRA limits the reporting of non-conviction criminal records.

Under FCRA §605(a)(2), arrest records, criminal charges, and other non-conviction criminal information generally may not be reported when the information is more than seven years old.

Sealed and Expunged Records

Colorado law allows certain criminal records to be sealed under C.R.S. §24-72-701 et seq. Once a record is sealed, the case generally may not be disclosed in consumer reports and employers may not rely on the sealed record when making hiring decisions.

Fair Chance / Ban-the-Box Law

Colorado enacted a statewide fair chance hiring law known as the Chance to Compete Act, codified at C.R.S. §8-2-130.

The law regulates how employers may inquire about criminal history during the hiring process.

Employer Coverage

The statute applies to both public and private employers operating in Colorado.

Criminal History Inquiry Timing

Employers may not:

• ask about criminal history on the initial job application, or

• include statements in job postings indicating that individuals with criminal records are automatically disqualified from employment.

Employers may inquire about criminal history later in the hiring process, such as during interviews or after determining that an applicant meets the minimum qualifications for the position.

The statute therefore delays criminal history inquiries until after the initial stage of the hiring process.

Individualized Assessment

Colorado’s Chance to Compete Act does not require a formal individualized assessment process similar to laws in some other jurisdictions. However, employers must still ensure that criminal history screening policies comply with federal anti-discrimination standards.

Credit Check Restrictions

Colorado restricts employer use of consumer credit information in hiring decisions.

The governing statute is the Colorado Employment Opportunity Act, codified at C.R.S. §8-2-126.

General Rule

Employers may not obtain or use consumer credit information for employment purposes unless one of the following conditions applies:

• the employer is a bank or financial institution

• the credit information is required by law

• the information is substantially related to the employee’s current or potential job duties.

Substantially Related Standard

A credit report is considered substantially related to a job when the position involves responsibilities such as:

• access to money or financial assets

• fiduciary responsibility

• authority over financial accounts

• access to confidential financial information.

Employers must disclose the reason credit information is sought and explain how it relates to the position.

Cannabis Use and Drug Testing Rules

Colorado permits both medical and recreational marijuana use.

Recreational Marijuana

Recreational marijuana became legal under Colorado Amendment 64.

Despite legalization, Colorado courts have held that employers may enforce workplace drug policies that prohibit marijuana use.

Employment Policies

Employers may:

• maintain drug-free workplace policies

• conduct drug testing

• discipline employees who violate workplace substance policies.

Colorado law does not require employers to accommodate recreational marijuana use.

Safety-Sensitive Positions

Employers may apply stricter drug testing standards to safety-sensitive roles or positions governed by federal regulatory requirements.

Pay Equity and Salary History Rules

Colorado enforces comprehensive pay equity laws that affect hiring practices and job postings.

Salary History Ban

Under C.R.S. §8-5-102, employers may not ask applicants about wage history or rely on wage history when determining compensation.

Applicants may voluntarily disclose wage history, but employers may not rely on the information when setting pay.

Pay Transparency

Colorado’s Equal Pay for Equal Work Act, codified at C.R.S. §8-5-101 et seq., requires employers to include compensation information in job postings.

Employers must disclose:

• the hourly wage or salary range for the position

• a general description of benefits and other compensation offered.

The law applies to positions performed in Colorado and has influenced how employers structure remote job postings connected to the state.

Local Fair Chance or Screening Ordinances

Colorado primarily regulates criminal history inquiries at the state level through the Chance to Compete Act.

No major municipal fair chance hiring ordinances currently apply to private employers beyond the statewide statute.

Employers hiring throughout Colorado generally follow the same criminal history inquiry timing rules statewide.

Record Sealing / Clean Slate Laws

Colorado allows individuals to seal certain criminal records under C.R.S. §24-72-701 et seq.

Record sealing laws permit individuals to petition courts to seal qualifying arrest records and convictions after defined waiting periods.

Once a record is sealed:

• the record generally may not be disclosed in background checks

• employers may not rely on the sealed record when making hiring decisions.

Colorado also allows expungement for certain juvenile records and limited adult offenses.

Key Statutes

• Colorado Consumer Credit Reporting Act — C.R.S. §5-18-101 et seq.
• Reporting Restrictions for Consumer Reports — C.R.S. §5-18-109
• Chance to Compete Act — C.R.S. §8-2-130
• Employment Credit Check Restrictions — C.R.S. §8-2-126
• Equal Pay for Equal Work Act — C.R.S. §8-5-101 et seq.
• Salary History Restrictions — C.R.S. §8-5-102
• Record Sealing Statutes — C.R.S. §24-72-701 et seq.

Employer Compliance Checklist

Employers conducting background checks in Colorado should implement several compliance practices.

Remove criminal history questions from initial job applications. Criminal history inquiries must occur later in the hiring process.

Confirm that credit checks meet statutory exceptions. Employers must document why consumer credit information is substantially related to the position or otherwise permitted under law.

Follow federal reporting limits for non-conviction information. Arrests and other non-conviction criminal records generally may not appear in background reports when older than seven years.

Ensure compliance with pay transparency requirements. Job postings must include compensation ranges and benefits information.

Review workplace drug testing policies. Employers may maintain drug-free workplace policies but should clearly communicate testing requirements and discipline standards.

Exclude sealed criminal records from hiring decisions. Background screening providers should not report sealed cases, and employers should not rely on sealed records when making employment decisions.