At-a-Glance Compliance Overview

State Mini-FCRA Laws

New Jersey does not maintain a comprehensive state consumer reporting law comparable to the “mini-FCRA” statutes adopted in states such as California, Massachusetts, or Colorado. Employment background checks obtained from consumer reporting agencies are governed primarily by the federal Fair Credit Reporting Act (FCRA).

Employers must comply with federal consumer reporting requirements when ordering background checks, including:

• providing a clear written disclosure before obtaining a consumer report
• obtaining written authorization from the applicant or employee
• providing a pre-adverse action notice if information in the report may negatively affect an employment decision
• issuing a final adverse action notice if the employer proceeds with the decision.

New Jersey regulates employment screening primarily through hiring practice statutes rather than through consumer reporting regulation.

Criminal Record Reporting Rules

New Jersey does not impose a state lookback limitation on the reporting of criminal convictions by consumer reporting agencies. As a result, criminal convictions may generally be reported without time limitation under FCRA §605(a)(5) unless another law restricts access to the records.

Non-conviction information is governed by federal law. Under the Fair Credit Reporting Act, consumer reporting agencies generally may not report arrests, indictments, or other adverse non-conviction information that is more than seven years old.

Expunged Records

New Jersey allows individuals to remove criminal records from public access through its expungement statutes. Once a record has been expunged, it generally may not appear in employment background checks.

Expungement laws are codified at:

N.J.S.A. 2C:52-1 through 2C:52-32

These statutes govern the expungement of:

• arrests not resulting in conviction
• disorderly persons offenses
• certain criminal convictions
• marijuana offenses.

Fair Chance / Ban-the-Box Law

New Jersey regulates criminal history inquiries through the Opportunity to Compete Act, codified at:

N.J.S.A. 34:6B-11 – 34:6B-19

Employer Coverage

The law applies to public and private employers with 15 or more employees doing business in New Jersey.

Criminal History Inquiry Timing

Employers may not make any criminal history inquiry during the initial employment application process.

The “initial employment application process” includes:

• job advertisements
• employment applications
• initial interviews.

Employers may inquire about criminal history only after the initial application process has concluded, which generally occurs after the first interview.

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

Credit Check Restrictions

New Jersey does not impose a general statutory restriction on employer use of consumer credit reports for employment purposes.

Employers may obtain credit reports for employment purposes if they comply with the Fair Credit Reporting Act, including disclosure, authorization, and adverse action requirements.

Employers should ensure that credit checks are relevant to the duties of the position and consistent with federal anti-discrimination guidance when using credit history in hiring decisions.

Cannabis Use and Drug Testing Rules

New Jersey legalized recreational marijuana through the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA).

The statute is codified at N.J.S.A. 24:6I-31 et seq.

Employment Protections

Employers generally may not refuse to hire or take adverse employment action against an individual solely because the person uses cannabis outside the workplace.

Employers may still:

• maintain drug-free workplace policies
• prohibit possession or use during working hours
• prohibit impairment during work.

Marijuana Drug Testing

Under N.J.S.A. 24:6I-49, employers relying on marijuana drug testing must follow additional procedures when taking adverse employment action based on cannabis use.

These procedures include conducting a physical evaluation to determine impairment, in addition to a positive drug test.

New Jersey regulations anticipate that the evaluation will be performed by a Workplace Impairment Recognition Expert (WIRE), although the state has not fully implemented the WIRE certification program.

Pay Equity and Salary History Rules

New Jersey prohibits employers from requesting or relying on an applicant’s salary history during the hiring process.

The salary history ban appears in:

N.J.S.A. 34:6B-20

Under this law, employers may not:

• screen applicants based on salary history
• require disclosure of past wages
• rely on wage history when determining compensation.

Applicants may voluntarily disclose wage history without prompting.

New Jersey also strengthened wage equality protections through the Diane B. Allen Equal Pay Act, which amended the New Jersey Law Against Discrimination. These provisions prohibit pay discrimination based on protected characteristics and require equal pay for substantially similar work.

Local Fair Chance or Screening Ordinances

New Jersey does not currently maintain municipal fair chance hiring laws that apply to private employers.

Earlier municipal ordinances, such as Newark’s ban-the-box law, were effectively superseded when the Opportunity to Compete Act established a statewide framework governing criminal history inquiries.

The state law also preempts conflicting local regulations, meaning employers follow the statewide rules when hiring in New Jersey.

Record Sealing / Clean Slate Laws

New Jersey provides one of the most comprehensive expungement frameworks in the United States.

Expungement laws appear in N.J.S.A. 2C:52-1 et seq.

In addition to traditional petition-based expungement, New Jersey created Clean Slate expungement, which allows individuals to clear multiple eligible criminal records after a defined waiting period if they have remained conviction-free.

Clean Slate provisions allow individuals to remove entire criminal histories from public access once eligibility requirements are satisfied.

Once a record has been expunged, individuals may generally state that the arrest or conviction did not occur in most employment contexts.

Employers should ensure that background screening providers exclude expunged records from employment reports.

Key Statutes

• Opportunity to Compete Act — N.J.S.A. 34:6B-11 – 34:6B-19
• New Jersey Salary History Ban — N.J.S.A. 34:6B-20
• New Jersey Expungement Statutes — N.J.S.A. 2C:52-1 et seq.
• Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act — N.J.S.A. 24:6I-31 et seq.
• New Jersey Law Against Discrimination (Equal Pay Amendments) — N.J.S.A. 10:5-12

Employer Compliance Checklist

Employers conducting background checks in New Jersey should implement several compliance practices.

Remove criminal history questions from initial job applications.

Delay criminal history inquiries until after the initial application process is completed.

Ensure background screening providers exclude expunged criminal records from employment reports.

Avoid requesting salary history during the hiring process.

Follow federal Fair Credit Reporting Act disclosure and adverse action procedures when ordering background checks.

Review drug testing policies to ensure compliance with New Jersey’s cannabis employment protections and testing procedures.

Train hiring managers on the timing restrictions imposed by the Opportunity to Compete Act.