At-a-Glance Compliance Overview

State Mini-FCRA Laws

Maryland regulates consumer reporting agencies through the Maryland Consumer Reporting Agencies Act, which supplements the federal Fair Credit Reporting Act.

The statute appears in:

Md. Code, Commercial Law §14-1201 through §14-1212

The law governs the activities of consumer reporting agencies and establishes additional requirements related to the reporting of information used in consumer reports.

Key provisions include:

• restrictions on reporting certain adverse information after specified time periods
• procedures governing disputes and corrections of inaccurate information
• regulation of consumer reporting agency practices.

Employers obtaining background checks from consumer reporting agencies must comply with both the federal FCRA and the Maryland Consumer Reporting Agencies Act.

Criminal Record Reporting Rules

Maryland imposes specific restrictions on the reporting of criminal records in employment background checks.

Under Md. Code, Commercial Law §14-1202, consumer reporting agencies may not report certain adverse information older than seven years when preparing consumer reports for employment purposes.

Convictions

Criminal convictions generally may not be reported if they are more than seven years old.

The seven-year period is measured from the date of disposition, release, or parole, whichever occurs later.

High-Salary Exception

The seven-year restriction does not apply when the position being filled has an expected annual salary of $75,000 or more.

In those cases, older convictions may be reported.

Non-Conviction Records

Arrests, indictments, and other non-conviction information are also subject to the seven-year reporting limitation.

Expunged Records

Maryland permits individuals to expunge certain criminal records under Md. Code, Criminal Procedure §10-101 through §10-110.

Once a record has been expunged, it generally may not appear in employment background checks.

Fair Chance / Ban-the-Box Law

Maryland regulates criminal history inquiries through the Maryland Job Applicant Fairness Act.

The statute appears in:

Md. Code, Labor & Employment §3-1501 through §3-1505

Employer Coverage

The law applies to private employers with 15 or more full-time employees.

Criminal History Inquiry Timing

Employers may not ask about an applicant’s criminal history until after the first in-person interview.

If the employer does not conduct an interview, the inquiry may occur after a conditional offer of employment.

Employers must therefore remove criminal history questions from initial job applications.

Credit Check Restrictions

Maryland restricts employer use of consumer credit reports under:

Md. Code, Labor & Employment §3-711 through §3-713

General Rule

Employers may not obtain or use a consumer credit report for employment purposes.

Exceptions

Employers may obtain credit reports when:

• the position involves managerial responsibility
• the position involves access to financial information
• the position involves access to confidential business information
• the employer is required by law to obtain a credit report.

Employers should ensure that credit reports are requested only when a statutory exception applies.

Cannabis Use and Drug Testing Rules

Maryland legalized recreational marijuana through the Cannabis Reform Act of 2023.

The law permits adults to use cannabis legally under state law but does not broadly prohibit employers from maintaining drug testing policies.

Employers may continue to:

• maintain drug-free workplace policies
• prohibit impairment during work
• conduct drug testing consistent with company policies.

Maryland’s medical cannabis law provides limited employment protections for registered patients, but the statute does not prohibit employers from taking employment action based on positive marijuana test results in many circumstances.

Employers should ensure that workplace drug testing policies clearly address marijuana use and impairment standards.

Pay Equity and Salary History Rules

Maryland restricts employer inquiries into wage history during hiring.

Under Md. Code, Labor & Employment §3-304.3, employers may not request or rely on an applicant’s wage history when determining compensation.

Applicants may voluntarily disclose wage history without prompting.

Pay Transparency

Maryland also requires employers to include compensation information in job postings.

Under Md. Code, Labor & Employment §3-304.2, employers must include in job postings:

• the wage range for the position
• a general description of benefits
• other compensation information.

Local Fair Chance or Screening Ordinances

Several Maryland jurisdictions have adopted fair chance hiring laws that impose stricter requirements than the statewide ban-the-box statute.

Baltimore City

Baltimore City adopted a fair chance hiring ordinance requiring employers to delay criminal history inquiries until after a conditional offer of employment and to conduct an individualized assessment before denying employment based on criminal history.

Montgomery County

Montgomery County enacted a fair criminal record screening standard requiring employers to wait until after a conditional offer of employment before conducting criminal background checks and to evaluate criminal history using specific assessment factors.

Prince George’s County

Prince George’s County adopted the Employment Fairness Act, which requires criminal history inquiries only after a conditional offer and mandates an individualized assessment of criminal history before adverse employment action.

Employers hiring in these jurisdictions must comply with the local ordinances in addition to statewide law.

Record Sealing / Clean Slate Laws

Maryland allows individuals to expunge certain criminal records under Md. Code, Criminal Procedure §10-101 et seq.

Expungement may apply to:

• charges resulting in acquittal
• dismissed charges
• certain nuisance crimes
• some misdemeanor convictions after specified waiting periods.

Expunged records are removed from public access and generally may not appear in employment background checks.

Key Statutes

• Maryland Consumer Reporting Agencies Act – Md. Code, Commercial Law §14-1201 – §14-1212
• Maryland Job Applicant Fairness Act – Md. Code, Labor & Employment §3-1501 – §3-1505
• Maryland Credit Check Restrictions – Md. Code, Labor & Employment §3-711 – §3-713
• Maryland Salary History Ban – Md. Code, Labor & Employment §3-304.3
• Maryland Pay Transparency Law – Md. Code, Labor & Employment §3-304.2
• Maryland Expungement Statutes – Md. Code, Criminal Procedure §10-101 – §10-110

Employer Compliance Checklist

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

• Remove criminal history questions from initial job applications.

• Delay criminal history inquiries until after the first interview unless a local ordinance requires a conditional offer.

• Ensure background screening providers apply Maryland’s seven-year reporting limit when required.

• Limit credit checks to positions that fall within statutory exceptions.

• Avoid requesting salary history during the hiring process.

• Include wage ranges and benefits information in job postings as required by Maryland law.

• Review hiring practices to ensure compliance with local fair chance ordinances in Baltimore City, Montgomery County, and Prince George’s County.

• Follow federal Fair Credit Reporting Act disclosure and adverse action procedures when ordering consumer reports.