Employee Background Check Laws in Tennessee

The Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq., is the primary federal law governing background checks. It applies to all employers using third-party consumer reporting agencies to obtain information about job applicants or employees. Under the FCRA, employers must:

(1) Obtain clear and conspicuous written authorization from the applicant before obtaining a background check; (2) Provide a separate, standalone document that discloses the employer's intent to use the information for employment purposes; (3) Ensure the consumer reporting agency complies with accuracy and fairness standards; and (4) Provide written notice of adverse action if the employer intends to take action based wholly or partly on information in the report.

The adverse action notice must include a copy of the report and a description of the applicant's rights under the FCRA. Applicants have the right to dispute inaccurate information. The Equal Employment Opportunity Commission (EEOC) enforces the FCRA for employment purposes. Additionally, the FCRA prohibits employers from obtaining certain types of information, such as medical records or investigative consumer reports, without specific additional authorization and notice.

Tennessee does not have comprehensive state-specific background check laws that are separate from federal FCRA requirements. However, Tennessee employers must still comply with all federal FCRA standards when conducting background checks.

Unlike many other states, Tennessee has not enacted a ban-the-box law that restricts when employers can ask about criminal history. This means Tennessee employers can ask applicants about criminal convictions on initial job applications without timing restrictions. However, employers must still comply with federal law when considering criminal history in hiring decisions.

Tennessee's Public Records Act, Tennessee Code Annotated § 8-4-101 et seq., governs public access to criminal records. Employers accessing criminal history through public records systems must comply with FCRA requirements and use the information only as permitted under federal law.

While Tennessee does not restrict criminal history inquiries, employers must still follow FCRA procedures: obtaining written consent before conducting checks, providing adverse action notice if denying employment based on criminal history, and ensuring fair consideration of individualized circumstances. The EEOC's enforcement guidance applies in Tennessee, meaning employers cannot automatically disqualify applicants with criminal convictions; they must evaluate the nature, seriousness, and recency of the offense, the time elapsed since the conviction, and the job relevance.

Tennessee does not provide additional state-level remedies beyond federal FCRA enforcement. Private right of action under the FCRA is available to job applicants harmed by violations, and attorneys' fees may be awarded in willful violations.

Tennessee employers are not required to comply with ban-the-box restrictions because Tennessee has not enacted such a law. This means employers can legally inquire about criminal history at any stage of the hiring process, including on initial applications.

However, exceptions under the FCRA do apply in Tennessee: (1) Employers may request criminal history information without a written disclosure if the employer uses an in-house consumer report (prepared by the employer's own employees using public records only), though the FCRA's adverse action notice requirement still applies; (2) Certain background check restrictions apply to specific professions regulated by Tennessee, such as childcare facilities, healthcare providers, and schools, which may have additional state licensing requirements beyond the FCRA; (3) Employers in positions involving access to sensitive information or vulnerable populations may conduct more extensive checks if business-justified.

The FCRA permits employers to consider criminal convictions in hiring decisions if there is a legitimate business reason, but employers cannot use blanket policies that automatically disqualify anyone with a conviction record. Employers must assess individual circumstances, including the nature and seriousness of the offense, time elapsed since conviction, rehabilitation evidence, and job relevance. Additionally, employers cannot consider arrests that did not result in conviction unless specific circumstances apply, such as pending charges directly related to the job.

Private individuals who conduct background checks without using third-party consumer reporting agencies may not be subject to all FCRA requirements, but they must still comply with accuracy obligations if information is used in employment decisions. Employers cannot obtain certain prohibited information, such as medical records or investigative consumer reports, without explicit additional authorization beyond the standard consent form.

Step 1 — Document Everything: Keep detailed records of all communications with the employer regarding the job application and background check process. Save copies of any consent forms signed, job postings, email communications, offer letters, and rejection notices. Document the dates you applied, when the background check was conducted, and when you received notice of adverse action. Maintain records of your actual criminal history and any disputes or corrections you filed with credit reporting agencies. Take screenshots of online applications showing any criminal history questions asked at each stage of the hiring process.

Step 2 — Internal Complaint and Company Response: Before pursuing legal action, contact the employer's HR department or hiring manager in writing (email or certified mail) to request: (1) A copy of the background check report used in the adverse employment decision; (2) Written explanation of why the background check resulted in denial of employment; (3) Clarification of whether proper FCRA disclosure and authorization forms were provided; (4) An opportunity to dispute inaccurate information in the report. Under the FCRA, applicants have the right to obtain a free copy of their background check report from the employer or consumer reporting agency. Request this in writing. The employer must provide the report within 15 days. If the employer refuses or delays, document this in writing.

Step 3 — File with the Appropriate Agency: If the employer violated FCRA requirements, you have two options. First, contact the Federal Trade Commission (FTC) Consumer Sentinel (online at reportfraud.ftc.gov or by calling 1-877-438-4338). File a complaint detailing the FCRA violation (failure to obtain consent, lack of adverse action notice, inaccurate report, or failure to provide dispute rights). The FTC will forward complaints to relevant agencies. Second, file a complaint with the EEOC (Nashville office: 615-736-5820 or online at eeoc.gov). The EEOC has concurrent jurisdiction over FCRA violations in employment contexts. Provide the employer's name, your dates of application and check, copies of consent forms or their absence, and the adverse action notice or lack thereof. No filing fee is required. Deadline: You have 180 days to file with the EEOC in Tennessee (as a non-deferral state), though FCRA claims may have different federal deadlines (generally two years from violation).

Step 4 — Investigation and Resolution Process: The EEOC will acknowledge your complaint within five days and typically investigate within 90 days, though investigation can take longer. During investigation, the EEOC will contact the employer, request the background check report and related documents, and review the consent forms and adverse action notice. The EEOC will assess whether FCRA procedures were followed and whether the information used was accurate and job-related. You will be contacted for additional information. The FTC does not conduct individual investigations but uses complaint data to identify patterns of violations; individual FTC complaints may lead to broader investigations if multiple complaints are filed. Expect 60-180 days for initial resolution attempts.

Step 5 — When to Consult an Attorney: Contact an employment law attorney if: (1) The EEOC does not resolve your complaint within 180 days and issues a Right to Sue notice; (2) You believe the background check report contained inaccurate information that affected your employment; (3) The employer failed to provide required FCRA disclosures or adverse action notices; (4) You received rejection based on a criminal conviction without individualized assessment; (5) The violation was willful (intentional non-compliance), which allows for statutory damages of $100-$1,000 per violation plus attorneys' fees. Consult a Tennessee employment law attorney who specializes in FCRA cases. Many offer free initial consultations. Attorneys can file suit in federal court under 15 U.S.C. § 1681p within two years of FCRA violation (three years for willful violations). Tennessee attorneys with FCRA experience can recover actual damages, statutory damages, and attorneys' fees, making the case potentially worthwhile even for single-applicant disputes.