Does Costco hire people with felonies?
No published policy
Unclear.
Costco hasn't published a policy on hiring people with criminal records.
Costco posts the San Francisco Fair Chance Ordinance notice for applicants there, as that law requires, but we found no Costco statement of its own about considering applicants with records.
Checked October 21, 2026 against 16 sources, then by a second reader
- Coalition or pledge
- None found
- Background check
- Yes2
- Screening company
- Not named
- How far back
- Not published
- Typical wait
- Not published
What Costco has said
We found no Costco statement on hiring people with criminal records, and Costco is not on the Second Chance Business Coalition member list. Costco's job applicant privacy notice says it runs background checks through screening providers when applicants authorize them. Costco's published drug- and alcohol-free workplace policy says all final applicants must pass a drug test before an unconditional offer or starting work, and it treats marijuana as a prohibited drug even where state law allows it, except where local or state law requires otherwise.
- Local fair-chance notice
Costco hosts a San Francisco Fair Chance Ordinance notice for applicants seeking work in San Francisco. This is a legally required notice, not a company policy statement.1
Does Costco do background checks?
Costco runs background checks. Costco's applicant privacy notice (effective January 1, 2026) says it collects reference and background check information from third parties, including background screening providers, when the applicant authorizes it. It doesn't say what the check covers, so we don't list criminal history as confirmed, and it doesn't say when the check happens.2
Does Costco drug test?
Costco drug tests applicants. Costco's drug- and alcohol-free workplace policy says all final applicants, including rehires (with narrow exceptions for recent layoffs and seasonal returns), must pass a drug test before getting an unconditional offer or starting work. The policy counts marijuana as a prohibited drug even where state law allows it, except where local or state law requires otherwise. The posted policy has no date.2,3
Rules for specific jobs
- All warehouse and hourly positions
Costco's careers resources page says some positions require a skills or business-related test and that Costco uses E-Verify nationwide. It says online applications expire after 90 days.4
Your rights, and how far back a check can go
- Under the federal Fair Credit Reporting Act (FCRA), an employer must get your written permission before it gets a background report about you from a background screening company.6,7,8
- Before an employer decides not to hire, keep, or promote you because of something in a background report, it must give you a copy of the report and a document called "A Summary of Your Rights Under the Fair Credit Reporting Act."6,7
- You have the right to dispute inaccurate or incomplete information in your background report directly with the company that made it.6,9
- The FCRA's seven-year limit does not apply to criminal convictions, so under federal law a conviction can show up on a background report no matter how old it is.10,11
- Under the FCRA, background and credit reports generally cannot include arrest records, civil lawsuits, or civil judgments that are more than seven years old (or older than the statute of limitations, if that is longer).10,12
Before you apply
- You can ask a background screening company for the information it has on you, and the CFPB keeps a list of consumer reporting companies, including employment screening companies, with their contact details.6,9,13
- According to the Clean Slate Initiative, 14 states and Washington, D.C. have passed Clean Slate laws that meet its criteria for automatically clearing eligible records: Pennsylvania, Utah, New Jersey, Connecticut, Michigan, Delaware, Virginia, California, Oklahoma, Colorado, Minnesota, New York, Illinois, and Missouri, plus D.C.14
- The Federal Bonding Program, run by the U.S. Department of Labor, lets states give employers free fidelity bonds that protect them against losses from a newly hired worker's dishonest acts, for job seekers with past justice involvement or in recovery from substance use.15,16
Applied to Costco recently and had a different experience? Tell us at contact@secondchanceindex.com. We check every report against Costco's own sources before we change a page.
Cite this page
Second Chance Index, "Does Costco hire people with felonies?" https://secondchanceindex.com/employers/costco, checked October 21, 2026.
Sources
Each source was opened and checked on October 21, 2026.
- San Francisco Fair Chance Ordinance | CostcoCostco Wholesale Corporation
- Costco Wholesale Corporation Job Applicant Privacy Notice (effective January 1, 2026)Costco Wholesale Corporation
- Drug and Alcohol-Free Workplace PolicyCostco Wholesale
- Resources for Applying | Costco CareersCostco Wholesale Corporation
- Costco Wins Bid to Annul Discrimination Finding (New York Law Journal, reprinted by the New York City Bar)New York Law Journal / New York City Bar Association
- Employer Background Checks and Your RightsFederal Trade Commission
- Using Consumer Reports: What Employers Need to KnowFederal Trade Commission
- Background Checks: What Job Applicants and Employees Should KnowU.S. Equal Employment Opportunity Commission and Federal Trade Commission (joint publication)
- What Employment Background Screening Companies Need to Know About the Fair Credit Reporting ActFederal Trade Commission
- 15 U.S. Code § 1681c - Requirements relating to information contained in consumer reportsLegal Information Institute, Cornell Law School (U.S. Code text)
- Advisory Opinion to Nadell (12-10-98)Federal Trade Commission (staff advisory opinion)
- How long does information stay on my credit report?Consumer Financial Protection Bureau
- List of consumer reporting companiesConsumer Financial Protection Bureau
- StatesClean Slate Initiative (nonprofit)
- Federal Bonding ProgramU.S. Department of Labor, Employment and Training Administration
- US Department of Labor awards $725K to help at-risk workers overcome barriers to employmentU.S. Department of Labor