California employers must follow strict state and federal laws when conducting pre-employment background checks to ensure fair and lawful hiring practices. This guide explains background check types, timelines, costs, and compliance requirements for conducting screenings in California.
By Brad Nakase, Attorney
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When recruiting, a lot of California companies use background checks to confirm a candidate’s background and assess their suitability for the position. Employers in California, however, have to exercise due care to abide by a complex network of national, state, and local rules governing pre-employment background checks in California.
Learn more about the standards for California background checks, what may be revealed on a state-level background check, and how to obtain a California background check by reading on.
Employment investigations in California go through documents and conduct screenings to learn about a candidate’s past. Criminal histories, driving records, credit histories, prior work and educational experiences, drug tests, and other information may be examined during employment background checks. To obtain quicker and more reliable background screening reports, employers have the option of doing their own background checks. They can use a certified background check company.
The employer, the role, and other variables may influence the background checks. Some background checks might be required to adhere to industry standards. There could also be a requirement from local, state, or federal legislation. For example, commercial drivers’ employers are required by California law to perform a motor vehicle history check as part of the employment process.
Criminal background checks are frequently conducted by employers to ensure that applicants have no pertinent criminal convictions that could exclude them from employment. Verification of schooling, employment, and drug use is an additional frequent test.
Employers in California can evaluate a candidate’s suitability for a position. They will be able to reduce risk and make well-informed hiring decisions by running a pre-employment background check in California.
Industry rules, like those set by the United States Department of Transportation, mandate MVR examinations for commercial drivers. Employers in the healthcare industry that receive federal funding might be obliged to verify that there are no charges against a candidate that would prohibit them from employment by using the Office of Inspector General’s Exclusion List.
Background checks are not solely performed for legal compliance. Employers use background checks to confirm a candidate’s credentials. This aids in the hiring process’s effectiveness. They are better enabled to make well-informed decisions. Background checks can reduce risk, improve worker safety, & safeguard the reputation of your company.
California pre-employment background checks can reveal a variety of information, including credit history, job and school history, driving records, convictions for crimes, civil court histories, drug test outcomes, and more.
What exactly is revealed by a pre-employment background check in California? A more detailed look at what various background check formats might reveal is provided here.
3 to 5 business days is the industry average response time for the majority of background checks. Some checks can be finished in just a few moments, while others require several days, depending on their extent.
Additionally, conducting a California background check online is much quicker than obtaining data in person or sending a request. Online searches may not always be an option. For instance, certain California courthouses require in-person courthouse visits to see court records.
Checks for criminal records in California may present extra challenges. Some courts in California have redacted a defendant’s complete date of birth & driver’s license number from public records. It was a result of a California Court of Appeals ruling (2021). This makes it more difficult to verify that a candidate’s legal documents match (more in large counties).
For example, in Los Angeles County, a legal researcher must go to a courthouse to validate the date of birth (DOB) by collecting case records for inspection or verifying the date of birth with a court clerk anytime a search indicates a potential match between an applicant and a court document in Los Angeles County. A background check’s processing time might be greatly increased by this kind of manual verification.
There could be delays if you perform your own background checks. It can be difficult & time-consuming. You have to search through government databases and file requests for court and MVR information. You may have to locate previous employers and physically visit county courthouses. It is not always possible to take out time to understand the federal, state, & local rules regarding background checks.
In California, hiring a consumer reporting agency (CRA) to perform an employment background check is typically quicker and more effective than doing it yourself. Databases that CRAs can access to help expedite California’s background check procedure. More quickly than any human searcher could, their sophisticated data retrieval system searches thousands of databases, including national records of crime checks & National Sex Offender Registry checks. Actually, 89% of criminal checks are finished in an hour.
Employers can hire a seasoned background check vendor, which is usually more efficient, or perform a background investigation in California on their own, which might take a lot of time.
1. Doing screenings yourself
Individuals can access public documents; however, the California Public Documents Act does not apply to state or local criminal histories. Employers in California who need a criminal record check, however, can seek records using the Department of Justice’s computerized program. The person must be fingerprinted in order to use this service.
The highest court in every one of the fifty-eight California counties must be contacted directly to get court records. Depending on the rules of the court, you might be able to obtain court records completely online, or you might need to physically visit the courtroom.
There are two methods to acquire MVR checks from the California DMV:
You need to find the right person or office at the company or school for employment/educational verification.
2. Use a background check service
There are numerous advantages to working with a reputable CRA as opposed to conducting background checks independently. Modern technology streamlines procedures and produces quick, accurate criminal record check reports by combining automatic data extraction with human evaluation.
By enabling compliance with California’s numerous rules, their compliance filtering helps guarantee that you only see information that is legally reportable. The amount of time spent responding to inquiries from candidates or encouraging them to finish tasks is decreased via automated correspondence with candidates and an intuitive candidate site. A California background check’s scope can be chosen by employers according to their requirements.
There will be limitations on how far back information may be submitted for several types of job background checks in California. Depending on the kind of background investigation, the data being reported, the role at hand, and whether you hire a CRA or do it yourself, there may be limitations on the review timeframes for background checks.
According to the federal FCRA, you can only report non-conviction information for a seven-year retrospective period if you work with a CRA to perform background checks. This is applicable to tax liens, legal judgments, and the majority of credit report data. The reporting period for bankruptcy, however, is ten years. These restrictions might not be applicable if the candidate anticipates earning more than $75,000 a year.
While criminal convictions are not subject to a time limit under the FCRA, companies that use CRAs for employment purposes are subject to more stringent California state rules. In general, California’s Investigative Consumer Reporting Agency Act prohibits CRAs from disclosing conviction records that are older than seven years.
Furthermore, regardless of the age of the record, this legislation forbids disclosing non-convictions, which include misdemeanor charges, indictments, and non-pending arrests. Also, marijuana convictions for misdemeanor offenses that occurred more than two years ago are typically not disclosed.
Accidents up to three years ago may be reported by California MVR inspections. It is possible to record offenses relating to driving that date back 3 to 7 years, based on the offense. California MVRs typically record traffic infractions from between 3 and 7 years.
Certain screenings, including proof of job and education, are not subject to lookback restrictions.
The sort of screening that is done and whether the company itself or a background check agency conducts the screening will determine how much a job background investigation in California costs. For instance, a certified duplicate of a California MVR check could cost $20, an unofficial copy obtained online by the company may cost $5, or an unofficial version sought by the applicant may cost $2. The cost of a check for criminal records that includes a Live Scan biometric check can reach $42.
Particularly if you are looking through court records in multiple California areas, the costs involved with obtaining a candidate’s documents on your own are erratic and may mount up rapidly. Performing background checks on your own also raises overhead costs for the time your HR staff spends driving to courthouses, physically contacting government organizations, and previous employers and schools. Important roles that remain empty also represent a lost cost of opportunity.
Employers’ use of credit, criminal, and driving record investigations is governed by California background check regulations. Employers ought to be aware of California’s background check laws. It includes the California Fair Chance Act & the Investigative Consumer Reporting Agency Act. It might also be necessary to abide by federal laws (FCRA).
To reduce risk, employers who are unclear which regulations apply to them might choose to speak with their own attorney.
1. The ICRAA (Investigative Consumer Reporting Agency Act)
The ICRAA, which is outlined in California Civil Code sections 1786.10–1786.640, is similar to the federal FCRA but has additional rules that Californians must abide by. Background reports that contain convictions that are more than 7 years old, charges or arrests that do not result in sentences, or any closed, dismissed, or purged convictions are typically prohibited by the ICRAA from being provided by CRAs. There may be ongoing criminal cases mentioned in reports. These limitations typically hold true irrespective of the position’s anticipated remuneration.
2. California FCA (Fair Chance Act)
Under California Government Code Section 12952, private and public companies in California with five or more workers are not allowed to inquire about an applicant’s criminal conviction history on their application or prior to making an employment offer. Companies are not allowed to ask about sealed, expunged, or erased convictions, involvement in pre-trial and post-trial diversionary services, and the charges that accompanied them, or arrests that did not result in convictions.
Unlike the Equal Employment Opportunity Commission’s (EEOC) suggested “nature-time-nature” approach, the FCA demands a more thorough evaluation if an employer performs a criminal history check following a conditional offer and contemplates taking negative action as a consequence. Individual evaluations must take into account:
The company must give the applicant a minimum of five days to respond. A copy of their criminal history report must be shared before notifying them in writing that the employment offer has been withdrawn.
3. Labor Code 432.7
The following are normally not subject to investigation by private/public employers:
4. Safety & Health Code 11361.5
With a few exceptions for documents that involve minors on educational premises, misdemeanor convictions involving marijuana must be deleted from the criminal history database two years following the date of conviction—or two years following the date of detention when there is no conviction—by any California court or organization that is in charge of records.
5. California Court Rules, Rule 2.507
Criminal defendants cannot be identified by their date of birth or driver’s license number. Consequently, driver’s license numbers and DOBs from publicly accessible online databases & public-access terminals have been censored in court centers.
To verify candidates’ identities, in-person trips to county courthouses are now necessary. It makes criminal background investigations in California challenging and time-consuming.
6. Vehicle Code 1808
Commercial drivers employed in California are required to submit to a driving record review during the recruiting process. They need to undergo routine MVR screenings at least once every 12 months. California’s Employer Pull Notice program is another requirement. It notifies employers about any fresh data on a worker’s driving record. It includes convictions, incidents, or suspension of licenses.
7. Civil Code Section 1785.20.5
Some basic actions are necessary while conducting a credit assessment on a job applicant.
8. Section 1024.5, Part Two, Division 2 of the California Labor Code
In general, employers are only permitted to take credit reports into account when making hiring choices for the following roles:
9. Labor Code of California, Section 222.5
In general, employers are required to pay for any pre-employment drug tests or physicals and are not permitted to deduct these expenses from an applicant’s pay.
10. Labor Code 432.3 in California
In conclusion, employers are not allowed to consider a candidate’s past pay history when making a recruiting choice or estimating the salary for the role. A salary scale for the role must be provided by the employer upon request.
11. Rule 2.507: California Court Rules
According to public records, criminal defendants cannot be identified by their date of birth or driver’s license number. Consequently, driver’s license numbers and DOBs from publicly accessible online databases & public-access terminals have been censored in court centers.
To verify candidates’ identities, in-person trips to county courthouses are now necessary. It makes criminal background investigations in California challenging and time-consuming.
1. What findings on a background check can disqualify applicants in California?
California’s hiring practices, compliance laws, and job criteria may determine whether a background investigation on an applicant disqualifies them from consideration. Based on all of these criteria, an applicant may be rejected for a number of reasons, such as a history of reckless driving, an adverse drug test, criminal convictions, or giving false information about prior job, education, or qualifications.
For example, a candidate may not be disqualified from an accounting post if their MVR report reveals a history of specific driving-related crimes, but they may be excluded from the delivery driver position. Though not always for delivery driving, a credit check that reveals a history of overdue payments, insolvency, or excessive debt may disqualify an individual from the bookkeeping position.
Laws at the federal, state, and municipal levels influence whether a candidate’s background screening results may disqualify them. The industry norms also have an influence. The employers should comply with the federal law of fair labor standards, California laws, and local hiring laws. Bear them in mind during the time you plan to reject an applicant due to the information received during a background check.
2. What can be done to ensure compliance?
California firms need to be on their toes to track the federal, state, and local employment rules to ensure that they stay within the rules. One may not be able to monitor changing regulations personally. It may be more useful and risk-mitigating to collaborate with a reputable CRA. They provide compliance optimization tools.
Eventually, it is the responsibility of the employers to comply with the rules and regulations pertaining to employment. Whether they do their own background checks or a CRA, it does not matter. The self-help approach might prove too daunting. It requires an understanding of a complex network of federal, commerce, and California laws. Having a reliable CRA at your side might make legal compliance much easier.
3. Does a background check in California reveal pending charges?
In California, a background check might reveal seven years’ worth of misdemeanor or felony records in addition to ongoing criminal accusations. It is not possible to disclose non-convictions, such as charges, indictments, or arrests that have not yet been made.
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