A January 2026 decision by the U.S. Court of Appeals for the Third Circuit clarifies and expands how Pennsylvania’s Criminal History Record Information Act (CHRIA) applies in the hiring context.

Under Section 1925 of CHRIA, when “an employer is in receipt of information which is part of an employment applicant’s criminal history record information file, the employer may use the applicant’s prior convictions for the purpose of deciding whether or not to hire the applicant[.]” 18 Pa. C.S. § 1925(a) (emphasis added). The information can be used only to the extent to which the convictions relate to the applicant’s suitability for the job. Id. § 1925(b).

Employers who reject an applicant must provide written notice to the applicant if the decision not to hire is based in whole or in part on criminal history record information. Id. § 1925(c).

For years, many employers operated under the assumption that CHRIA applied only when criminal history information was obtained through an official source, such as a background check from a state agency. But in Phath v. Central Transport LLC, the Third Circuit rejected that view. Instead, the Court held that Section 1925 applies whenever an employer receives information that qualifies as “criminal history record information,” even when that information is disclosed directly by the applicant himself. This interpretation shifts the focus from where the information came from to what the information is.

Case Background
In Phath, an individual applied for a commercial truck driver position at Central Transport LLC. He had a commercial driver’s license, relevant experience, and federal clearance to access secure ports. But when Central Transport said it would check Phath’s criminal history, he disclosed a 15-year-old felony conviction for which he had spent time in prison. After learning of the conviction, the employer declined to hire him. Phath sued, alleging that Central Transport violated CHRIA by improperly relying on his criminal history.

The district court dismissed the case, reasoning that CHRIA did not apply because the employer learned about the conviction directly from the applicant instead of from a state criminal records repository.

On appeal, the Third Circuit reversed. The Court reasoned that Section 1925(a) applies when an employer “is in receipt of” information, but the statutory language does not limit how or from whom the employer must receive that information. 165 F.4th 780, 783 (3d Cir. 2026). “What matters in § 1925(a) is the type of information that the employer received, not its source.” Id. In other words, the statute turns on the nature of the information, not the method by which it is obtained.

Employer Takeaway
The Phath decision significantly broadens the practical reach of CHRIA for many employers. If an employer learns of information that would appear in an applicant’s criminal history – even if the employer learns of that information by checking publicly available sources such as the Megan’s Law list or by performing Google searches – the employer’s use of that information is still governed by CHRIA.

Employers should review their hiring policies and practices to ensure compliance with CHRIA’s notice requirements and limitations on the use of criminal history information, regardless of how that information is obtained. If you have questions, please contact attorney Hannah Schroer or any member of Barley Snyder’s Employment Group Practice Group