Background Check Error Lawsuits in North Carolina

North Carolina does not have its own consumer reporting agency law for employment or tenant screening, and it has no statewide ban-the-box law for private employers. Background checks for jobs and apartments are governed mainly by the federal FCRA. A 2020 executive order, EO 158, removed criminal history questions from state agency job applications and delayed background checks until after an initial interview, but it did not cover private employers.

North Carolina's Second Chance Act (S.L. 2020-35) expanded expunction. For charges disposed of on or after December 1, 2021, cases where all charges were dismissed or the person was found not guilty are generally expunged automatically, with exceptions such as some plea-agreement dismissals. The General Assembly revised the automatic process in 2024. Under G.S. 15A-153, employers and schools may not require an applicant to disclose an expunged arrest, charge or conviction, and the applicant does not have to mention it. The Commissioner of Labor enforces this rule. It does not create a private right to sue.

North Carolina also offers a Certificate of Relief. Under G.S. 15A-173.5, an employer that relied on a certificate is protected from negligent hiring claims, which can make it easier for a person with a record to be hired. Tenant screening in North Carolina is governed mainly by the FCRA. A screening company that reports an expunged case, lists a dismissed charge as a conviction, or mixes in another person's record may be liable under the FCRA.

Where North Carolina FCRA cases are filed

FCRA claims are federal, so they go to a United States District Court. Cases from North Carolina are heard in 3 federal districts:

Eastern District of North CarolinaCourthouses: Elizabeth City, Fayetteville, Greenville, New Bern, Raleigh, Wilmington.Filed with local or cooperating counsel
Middle District of North CarolinaCourthouses: Durham, Greensboro, Winston-Salem.Filed with local or cooperating counsel
Western District of North CarolinaCourthouses: Asheville, Bryson City, Charlotte, Statesville.Filed with local or cooperating counsel

Our attorneys are licensed in Texas, California, and Georgia. Where they aren't admitted in your local federal court, we work with local or cooperating counsel who are. You may also be able to sue where the company that reported you is based, in a court where our attorneys are admitted:

Checkr: HQ in N.D. California
First Advantage and Sterling: HQ in N.D. Georgia
RealPage: HQ in N.D. Texas

Which court is right depends on your facts. We'll tell you at your free case review.

North Carolina laws that add to the FCRA

Expunged records in employment and school applications (N.C. Gen. Stat. § 15A-153)
Employers and educational institutions may not require applicants to disclose expunged arrests, charges or convictions, and applicants need not mention them. The Commissioner of Labor enforces it with warnings and civil penalties of up to $500 per later violation. It does not create a private right to sue. Read it
Automatic expunction of dismissed charges and acquittals (N.C. Gen. Stat. § 15A-146(a4))
Provides for automatic expunction when all charges in a case are dismissed or end in a not guilty verdict, for dispositions on or after December 1, 2021, with exceptions. Revised by S.L. 2024-35. Read it
Certificate of Relief, effect on negligent hiring claims (N.C. Gen. Stat. § 15A-173.5)
A Certificate of Relief bars negligent hiring claims against an employer or landlord that relied on the certificate when dealing with the person. Read it

Common background check errors

Someone else's criminal or eviction record matched to you by name
Dismissed, sealed or expunged cases still reported
Charges reported as convictions, or misdemeanors as felonies
The same case listed several times
Eviction filings reported without the dismissal or outcome

Learn how these cases work on our background check lawsuits page, or read our lawsuit guides for Checkr, Sterling, HireRight, First Advantage, RealPage, SafeRent, RentGrow and TransUnion Rental Screening.

Frequently asked questions

Do I have to tell a North Carolina employer about an expunged record?

No. Under G.S. 15A-153, an employer may not require you to disclose an expunged arrest, charge or conviction, and you may leave it out when answering questions. There are exceptions for certain law enforcement and criminal justice jobs.

My charges were dismissed. Why do they still show up on a background check?

Dismissed charges may be expunged automatically for cases disposed of on or after December 1, 2021, but older cases may need a petition. Private screening companies sometimes keep old court data even after a record is cleared. If a report shows an expunged or dismissed case in a misleading way, you can dispute it, and you may have a claim under the FCRA.

Can North Carolina private employers ask about criminal history on an application?

North Carolina has no statewide ban-the-box law for private employers. The 2020 executive order covered only state agencies under the Governor. Private employers still must follow the FCRA when they use a background check company, including giving you a copy of the report before taking adverse action.

How long do I have to file an FCRA lawsuit in North Carolina?

FCRA deadlines are the same everywhere: generally two years from when you discover the violation, and no more than five years from when it happened (15 U.S.C. § 1681p). Waiting can cost you the claim.

Sources

Updated November 2026. This page is general information, not legal advice.