Enacts new GS 126-20 (State agency hiring practices; criminal histories). Applies to all State agencies and State government employment, except for public employers required by State or federal law to conduct a criminal history inquiry as a preliminary qualification to be considered for public employment, positions that include law enforcement or public safety, and positions that involve direct interaction with minors or the elderly.

Provides that applicants for State jobs will not be asked to disclose information regarding the applicant's criminal record or history until the applicant has signed the appropriate waiver authorizing release, is being considered for a specific position, and has received an interview.

Establishes five criteria for the State agency to consider before either proffering or denying an offer of employment to an applicant with a criminal history, including the nature and gravity of the offense. Requires the agency to inform the applicant of the potential adverse employment decision prior to a final decision, and provide the applicant the opportunity to demonstrate that the criminal background check was inaccurate.

Provides that arrests not resulting in conviction may not be the basis of disqualification for public employment.

Authorizes applicants to file a grievance for violations of this statute under GS 126-34.01 (Grievance, resolution) and GS 126-34.02 (Grievance appeal process, grounds).

Directs the Office of State Human Resources to record and log the positions statutorily required to conduct background checks, determine compliance with this statute on a quarterly basis and report annually on its findings to the General Assembly, and to collect and make available to the public specified data related to this statute.

Encourages comparable hiring practices among local governments and private employers.

Includes General Assembly findings and defines terms used in the statute.

Amends GS 126-34.02(b) and GS 126-5 to make conforming changes.