Indiana Background Check Laws - The Complete Guide for 2025 - 2026

Indiana background check and screening laws include requirements and restrictions around pre-employment screening, background checks, what information is accessible, protections against discrimination, and special considerations for childcare staff.

The following is a complete overview of Indiana background checks and screening, along with requirements when it comes to criminal history and discrimination.

Indiana Background Checks & Screening Laws

Indiana is one of many states that regulate the use of arrest and conviction records (criminal history) when it comes to hiring new employees, as part of an effort to eliminate discrimination in the hiring process. Employers must adhere to these state regulations as well as the federal regulations regarding background checks and criminal history usage that are all part of Indiana Labor Law compliance.

These rules and legislation apply to conducting background checks and general pre-employment screening of applicants, candidates, and / or new hires.

Indiana Pre-employment Screening

The background check process typically starts with the pre-screening of potential candidates. The pre-screening process is used to verify a candidate's background and general information. 

It is important, however, to be aware of the rules and regulations that are in place to help protect employees from discrimination during this part of the recruitment process.

Depending on the type of job, and the employer, certain types of pre-employment screening tests may be performed that are more common than others. These screens include:

• Pre-employment assessments
• Criminal history screenings
• Public record screenings
• Lie detector or polygraph tests
• Social Security number (SSN) tracing
• Controlled substance screenings

Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA) is a federal law that regulates background checks and access to criminal information by employers. 

Under the FCRA, information collected in a background check may only be provided to those specified by the law.

Employers requesting a background check have certain legal requirements as well, such as:

• The duty to investigate any disputed information
• Informing the candidate of the background check, in writing, before the screening process begins 
• Provide information on any third-party background check company, in writing
• In addition, employers using the information for credit, insurance, or employment purposes must notify the employee when an adverse action is taken as a result of a background check. An adverse action refers to an employer’s decision not to hire a candidate based on a background check.

How Far Back Do Indiana Background Checks Go?

According to the FCRA, background checks and criminal history requests can go back seven years. Information regarding non-convictions or arrests after seven years may not be legally reported. However, there are a few cases in which there are exceptions.

Exceptions include:

• Executive / Management Positions
• Federal Contractor Positions
• Positions with annual salaries greater than $75,000

What Criminal History Information Can I Access in Indiana?

Employers will see the following information on background checks and criminal history reports in Indiana: 

• Case Number
• Arrest Date
• Charge
• Charge Severity (Felony or Misdemeanor)
• Case Disposition
• Case Disposition Date
• Sentence

When Can Employers Access Criminal History in Indiana?

Indiana employers may obtain arrest and conviction records for potential new hires if:

• The records relate to an arrest of charge for a felony or class A misdemeanor, AND;
  • The arrest or charge occurred less than one year before the date of the request
  • The arrest or charge occurred one year or more before the date of the request if the associated criminal proceedings have been concluded or indefinitely postponed
  • The arrest or charge regards a sex or violent offender obtained through sex or violent offender registration

Prohibited Uses of Criminal History in Indiana

Indiana employers are prohibited from using or accessing criminal history in the following situations:

• Employers may not use such records for any purpose other than those stated in the request for the information, or for purposes that would deny any civil right of the person that is the subject of the records.
• An employer may not ask whether the person's criminal records have been sealed or restricted.  Additionally, information relating to certain infractions will not be disclosed and applicants may state that there has not been a conviction for the infraction.
• An employer may not suspend, expel, refuse to employ, refuse to admit, refuse to grant, or renew a license, permit, or certificate necessary to engage in any activity, occupation, or profession.
  • Employers also may not discriminate against any person because of a conviction or arrest record expunged or sealed under the law.
• In any application for employment, license, or other right or privilege, a person may be questioned about a previous criminal record only in terms that exclude expunged convictions or arrests.

Criminal History Exceptions from Background Checks in Indiana

A criminal history provider may not knowingly provide a criminal history report that provides information relating to:

• Expunged records
• Records restricted from public access
• A record indicating a conviction of a Class D felony
  • for a crime committed before July 1, 2014
    • Only if such a conviction has been entered as (or converted to) a Class A misdemeanor conviction
• A record indicating a conviction of a Level 6 felony
  • for a crime committed after June 30, 2014
    • Only if such a conviction has been entered as (or converted to) a Class A misdemeanor conviction
• A record that the criminal history provider knows is inaccurate

Indiana Background Checks for Childcare Staff

The state of Indiana requires a criminal background check be conducted on all current and prospective childcare staff members, employed by a childcare provider including licensed homes and centers, unlicensed registered ministries, legally licensed exempt homes and centers, and in-home / nanny care providers.

For those employees, a criminal background check must be completed every three years. If the applicant has not been employed in childcare within the last 180 days, a new criminal background check must be completed.

Additionally, an Indiana state sex offender registry check and Child Protection Index check must be completed yearly.

If disqualified, the child-care staff member may challenge the completeness or accuracy of the record but is not eligible to work in childcare during the challenge process.

How to Request Criminal History Information in Indiana

To request a criminal records check, employers can contact the Indiana State Police Department's Central Records Division. However, if this process seems scary, know that businesses don’t need to go about it alone.

Businesses in Indiana should consider reaching out to an Indiana HR provider for assistance in the hiring process and criminal history access, as well as modern recruitment and onboarding solutions, in order to make hiring compliance simple, easy, and streamlined. 

If you are a business in Indiana, get connected today with an HR provider today.

Guest Author: Scott Holland

Scott Holland is the Executive Vice President at TruPay, an Indiana human capital management solutions company serving medium and large employee-size organizations throughout the United States. Scott earned a B.S. from Bethel College, majoring in accounting and business administration. He is a member of the AICPA and Indiana CPA Society and has been invited to speak at the Independent Payroll Provider’s Association (IPPA) tax and operations conference.