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California's Department of Fair Employment and Housing announced they will be watching for and acting on violations of the Fair Chance Act.

Ban The Box

In January 2018, California legislators implemented a “Ban the Box” law as part of the state’s Fair Chance Act (FCA). It prohibits employers that have five or more employees from asking questions about criminal history on job applications. The law notes that organizations may not inquire about an applicant’s conviction history, either directly or indirectly, or run criminal background checks until they have made a conditional job offer.

The Fair Chance Act also created limitations regarding what content can be used for help wanted ads. For example, organizations cannot indicate that they will not hire individuals who have a criminal history by using statements such as “no felons” or “people with a conviction need not apply.”

If a hiring manager runs a background check and sees a record that causes them to consider an adverse action, like revoking the conditional offer, they must follow a process established by the Fair Credit Reporting Act. California law requires additional steps, such as specifying which record(s) caused the concern. Candidates are allotted time to review their background report and accompanying documents. If they indicate an intent to file a dispute, their prospective employer must give them five days to follow up.

FCA Violations

The Department Of Fair Employment and Housing (DFEH) is responsible for enforcing CA’s Fair Chance Act. Since a Ban the Box section was implemented, they have logged numerous complaints from consumers. A common example involves allegations about job ads that suggest the organization will not consider individuals who have criminal records.

Tracking And Enforcement

During a recent announcement, the DFEH noted that they will be closely track violations of the FCA. They will begin by documenting each complaint and sending notices which ask the organization to remove any unlawful statements.

The DFEH released a Toolkit to help employers comply. It provides sample forms along with information about how they are used, suggestions on how advertisements should be written, frequently asked questions and a video that explains the FCA. Learn more.

Remaining Compliant

Human Resources professionals are encouraged to document their hiring policies and include details about how they will comply with federal, state and other laws that are in effect where they operate. We recommend consulting with counsel when creating this documentation. Once it is complete, share it with everyone who will be part of the hiring process. Best practice is to review these policies at least annually and update them as needed.

Running Background Checks

Employers in the Golden State and throughout the country are encouraged to run comprehensive background checks on applicants, contractors and volunteers. These reports help hiring managers make informed decisions and maintain safe workplaces.

When you need employment background checks, please contact us. Our team can help you customize screening packages for any position and we provide sample compliance forms and educational resources. We are available to assist you Monday through Friday from 5am to 6pm PT.