California employers must follow strict background check laws when hiring in 2025 to maintain compliance and fair employment practices. This guide outlines key legal requirements, background check components, and lawful hiring practices across various industries.
By Brad Nakase, Attorney
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Conducting background checks is one of the integral components of the employment process. It’s not easy to understand the regulations surrounding them.
This is especially the case for California background investigations conducted before employment, where the focus is acute.
Did you know that there are believed to be 8 million people with criminal records in California?
For this reason, prior arrests and convictions are almost inevitable to find during the hiring process.
Everything you need to understand about laws, regulations, and procedures is included in this guide.
A California work background check evaluates a candidate’s qualifications for a job by looking at their professional licenses, employment history, education, criminal history, and other pertinent data.
Employers around California utilize such screenings to confirm candidate information and base their hiring decisions on accurate and trustworthy data.
The majority of businesses in California ask about an applicant’s work history, criminal record, and educational background.
As per the position, other background data might also be examined.
1. Details of Criminal History
The following could be included in the California background check if the candidate has an identifiable criminal history:
It is advised that employers consider criminal histories contextually instead of automatically rejecting applicants.
The duties of the position and safety at work should be taken into account in each case to guarantee equitable recruiting procedures.
The disclosure of sealed, erased, or pardoned details is prohibited by consumer reporting companies.
2. Educational records
Verification of education demonstrates that applicants are academically qualified for the role.
These could consist of:
Employers can confirm that an applicant’s educational background is accurate with the aid of this procedure.
3. Employment Verification
This verification examines a candidate’s employment history by looking at:
Employers can use this to verify a candidate’s employment history and find any odd gaps in employment.
4. Verification of Professional Licenses
It confirms the following for positions requiring licenses or certifications:
This guarantees that applicants in regulated fields possess the qualifications necessary for their roles.
5. Identity Verification
Verification of identity verifies the candidate’s personal data, such as:
By doing this, the chance of mistakes or misidentification is decreased and the California background verification is performed on the right person.
6. MVR (Motor Vehicle Records) Check
The following information regarding a candidate’s driving history is provided by an MVR assessment:
In positions involving driving, this assessment helps verify that the applicant is a responsible, safe driver who complies with safety and insurance regulations.
1. FCRA (Fair Credit Reporting Act)
The FCRA, or Fair Credit Reporting Act, was created to safeguard both applicants and employers.
The FCRA specifically encourages authenticity, equity, and confidentiality for data in consumer report agency files.
When it comes to background checks for employment, the FCRA represents the federal standard. It ensures that candidates have the privilege of a record of the investigation’s findings.
Additionally, if a background check yields false or insufficient information, the applicant may contest the results.
Under the FCRA’s 7-year reporting regulation, a CRA (consumer reporting agency) is prohibited from disclosing the following data if the job generates under $75,000 a year and the information is 7 years old or older:
California law, as detailed below, restricts the publishing of conviction details that are older than 7 years, even if the FCRA does not.
Like other businesses, California employers must abide by FCRA regulations.
Today, when a recruiting employer utilizes background checks created via third-party sources, it must adhere to federal FCRA regulations.
The employer is required to perform the following in these situations:
The FCRA does not apply to employers who create their own background check reports.
2. The 1964 Civil Rights Act’s Title VII
1964 Civil Rights Act (Title VI), among other laws that forbid discrimination at the place of work, is enforced by the EEOC (Equal Employment Opportunity Commission).
Title VII prohibits businesses from discriminating against candidates or workers on the basis of the some protected traits:
Protections have been extended by other statutes to include:
EEOC regulations mandate that employers evaluate criminal history information separately when it is discovered during a background verification.
Before deciding to hire someone based only on their past, employers must see how their conviction pertains to the particular job tasks and safety.
3. The Fair Opportunity to Compete for Employment Act
A federal legislation known as the Fair Chance to Compete for Jobs Act went into effect on 20th December 2021.
Private businesses that enter into contracts with the government (federal) are also subject to this regulation, as are federal agencies & federal contractors.
Employers who are covered by this law are not allowed to ask applicants about their criminal backgrounds on their job applications.
Additionally, until they receive conditional job offers, they are unable to conduct criminal record checks.
It is illegal for federal agencies to enter into contracts with businesses that request criminal histories prior to extending a conditional offer of employment.
1. ICRAA/CCRAA
Some employer screenings are now subject to both the CCRAA (Consumer Credit Reporting Agencies Act) and the Investigative Consumer Reporting Agencies Act (ICRAA), per a California Supreme Court decision upholding the Court of Appeals’ ruling in Connor versus First Student, Inc.
Employers may therefore have to abide by both regulations along with making sure their California background checks continue to be in compliance with all relevant state and federal legislation.
Here is all the information you require on the CCRAA and ICRAA.
The ICRAA
Among other things, the ICRAA (Investigative Consumer Reporting Agencies Act) contains particular reporting limitations and notification obligations.
Several provisions in the ICRAA are more stringent than those in the FCRA. Wherever its regulations are more confining, the ICRAA takes precedence over the FCRA.
For instance, only criminal convictions within the previous seven years & open cases may be reported under Section 1786.18 in the ICRAA.
Additionally, the ICRAA sets limitations on the methods and timing of California background check report generation by employers.
Section 1786.16 (2)(B)(iv) states:
An investigatory consumer report cannot be obtained or caused to be generated by any of the individuals listed in Section 1786.12, subdivision (d) unless the below-mentioned relevant circumstances are satisfied:
(2) In the event that an investigatory consumer assessment report is requested for employment-related reasons other than the doubt of misconduct or wrongdoing by the issue of the examination, the person requesting the report may only obtain it or have it prepared if each of the conditions are met:
(B) At any point prior to the report being obtained or causing it to be created, the individual who is doing so gives the consumer a written, unambiguous, and conspicuous declaration in a written form that only contains a statement that:
(iv) Provides the address, telephone number, and name of the consumer reporting agency that is carrying out the investigation.
ICRAA also mandates compliance with the seven-year regulation. Notwithstanding the subject’s expected income, it “restricts the conviction data to a period of seven years following the release, disposition, or parole.”
This is significant because employees who earn below $75,000 per year are exempt from the FCRA’s more general 7-year limits.
Investigative reporting organizations are required to provide a number of notifications on the initial part of the reports they produce, as the ICRAA further explains (see Section 1786.29).
Most notably, the clause mandates that reporting agencies state that the analysis is not responsible for the veracity or completeness of its contents in a notice that is written in 12-point bold font.
Furthermore, it mandates that the notification state that the data in the report is based on public records and that criminal activity and identity theft could change the veracity of the findings.
Compliance-minded companies should carefully review Section 1786.22 of the ICRAA, which spells out additional obligations for independent consumer reporting institutions.
CCRAA
In most aspects, the CCRAA is similar to the ICRAA, although it differs with regard to credit reports.
Credit reports & investigative reports on consumers are classified as background reports under CCRAA Sec 1785.20.5.
“Both the user as well as the subject matter of the investigation shall get the report simultaneously and at zero cost.”
2. Rule of 7-Year Lookback in California
Under the ICRAA, California has a 7-year limit on reporting convictions. The legal code’s section 1786.18(a) (7) contains this law.
On the other hand, there is no time restriction on reporting conviction records under the federal FCRA (Fair Credit Reporting Act).
The FCRA is superseded by a further limitation in the ICRAA, which states that convictions that are over seven years old cannot be disclosed on California background verifications.
Another distinction is that, even if they took place during the previous seven years and did not result in convictions, this clause forbids CRAs from disclosing non-conviction details, such as arrests or indictments.
Reports on pending cases are accepted.
The limitation imposed by California is applicable irrespective of the desired wage. The 7-year limitation under the FCRA, on the other hand, only pertains to positions that pay at least $75,000 per year.
Lastly, California’s expungement & clean slate legislation may have an effect on the seven-year regulation’s implementation, as explained below.
3. CCPA
CCPA, or The California Consumer Privacy Act, builds upon the FCRA’s baseline privacy protections for employees.
Voters’ ratification of the CPRA (Consumer Privacy Rights Act) in the election (2020) further revised the CCPA by extending the safeguards available to consumers. In California, the CPRA increased the rights of applicants and other consumers. It went into effect on January 1, 2023.
The CCPA, similar to the FCRA, imposes stringent limitations on businesses that opt to outsource their California background investigations to third-party firms rather than doing it themselves.
The CCPA mandates that employers who conduct their own investigations must provide candidates with the opportunity to “opt in” to obtain a duplicate of the investigation results.
As mandated by the FCRA, the checkbox has to be found in the notification of the California background investigation or the employment application.
If the candidate chooses to opt in, a duplicate of the review must be sent to them within 3 days of the employer receiving it.
Employers are required by the CCPA to provide what it refers to as a “clear & prominent” notice if they decide to use a third-party service to perform California background checks.
This written notice needs to explain the “scope & nature” of the investigation.
Employers who want to check the candidate’s references through a third-party investigation provider must:
There’s a noteworthy exception. According to the CCPA, the company is exempt from having to notify the applicant and get their agreement for a California background check if they believe the candidate has committed misconduct or wrongdoing.
4. Labor Code 432.7 in California
CA Labor Code 432.7 prohibits CA employers (both private and public) from asking an applicant about certain factors related to his or her criminal background, including:
Furthermore, it is unlawful for a business to base its recruitment decisions on those factors above.
5. Removing birthdates from court documents
The ruling in All of Us or None of Us versus. Hamrick is important for employers in California to be aware of.
The California Court of Appeal overturned the trial court’s ruling that clerks of court are exempt from having to remove driver’s license information and birth dates from court documents.
After the case was returned to the inferior court, it rendered a decision in favor of the litigants, concluding that redacting driver’s license numbers and birthdates from court documents is required by law.
All the information that will identify a person in these criminal court files will therefore need to be removed by the courts, except names.
This reform will immediately affect the state’s job background checks because, in order for consumer reporting companies to confirm the applicant’s criminal record, they are required to verify at least two identities.
It is not possible to report criminal history that cannot be verified.
6. SB-731
Gavin Newsom, Governor of California, signed SB-731 into legislation on 29th September 2022.
For non-violent, non-sex offender-related charges that fit the following requirements, the new law will immediately seal felony files:
7. Fair Chance and Ban the Box Hiring Laws
The Californian Fair Chance Law
1st January 2018 saw the implementation of the Fair Chance Act. In California, unless a special circumstance exists, this statute is applicable to both public and private enterprises that employ 5 or more people.
The Fair Chance Act also prohibits companies from asking about a job candidate’s criminal record until after it extends a conditional offer of employment.
Companies must also conduct a differentiated evaluation once it’s concluded that a candidate’s criminal record exists.
Some of the Fair Chance Act provisions were recently changed and effective October 1, 2023.
The specifics of these interesting changes are given in the next section.
Fair Chance Ordinance of Los Angeles County
On September 3rd of 2024, the Fair Chance Ordinance of Los Angeles County went into effect and is applicable to both public and private companies with a minimum of five employees that work for at least 2 hours a week in the unincorporated areas.
Legislation even applies to the company if it isn’t based in the unincorporated territory.
Employers, not consumer reporting agencies (CRAs), are responsible for adhering to the Fair Chance Ordinance of the county as CRAs won’t be able to determine whether a company has a staff member working in the unincorporated region for at least two hours each week.
CRAs are not permitted to report:
Caregiving jobs relating to the care of any dependent, person over 65, and minors are exempted from the 7-year lookback period.
Additionally, it does not apply to positions that deal with managing public funds or benefits.
The following individuals are exempt from disclosing convictions for positions involving the management of public money or benefits:
The LA County Fair Chance Ordinance requires employers to abide by a number of regulations, including:
8. Requirement for Special Notice
The following must be included in the special notification:
This specific warning must be given by employers even when they plan to conduct social media or Google searches outside of the background assessment procedure.
A permission form isn’t accessible since the notice needs to be employment-specific. An initial paperwork can be made by an employer and customized for every employment, though.
All employment advertisements must disclose that employers are legally required to perform background checks.
If the regulation only mandates checks for certain crimes, the company must identify those violations in the public employment notice.
9. Requirement for Written Assessment
If an employer decides not to hire a candidate because of their criminal history, they must fill out a written evaluation and give the candidate a copy.
The evaluation has to address at least one of the requirements for the role and be precise.
An additional evaluation must be completed by the employer if the candidate presents proof of rehabilitation.
These are the deadlines that employers must give candidates for submitting evidence of rehabilitation or alleviating circumstances:
If the candidate does not reply within ten days, the employer may notify them that the post will be closed and explain why it shall be too burdensome for them to keep it available.
10. Penalties
The penalties that follow may be imposed on employers who break the LA County Fair Chance Ordinance:
To ensure compliance, employers must thoroughly read the new law and get legal advice.
11. The FCA’s regulatory changes
Employers need to be aware of the following changes that were implemented by the modifications:
12. Conviction Relief: The Clean Slate Law of California
The CDOJ (California Department of Justice) is required by this new law to examine court records on a monthly basis and erase any detentions that resulted in no convictions within 3 years of the date of the arrest.
Additionally, they have to delete any records pertaining to criminal cases in which the person participated in drug diversion, pretrial diversion, or any kind of approved diversion program.
Lastly, this rule permits those convicted of felonies to ask the court to accept a not-guilty plea in place of their guilty plea.
They will withdraw the guilty pleas and file not-guilty pleas if the judiciary determines that doing it is in the best interests of justice.
This procedure does not occur automatically, but entering a not-guilty plea does have the effect of precluding reporting your prior conviction.
The clean slate rule prevents reporting automatically wiped criminal records, and they are not even assumed to be spontaneous remission and should not be reported in interviews or on resumes and applications.
13. Removal and Sealing of Some Previous Marijuana Convictions
After California legalized marijuana for recreational use, the Legislature enacted AB 1793 and the Governor signed it into law on September 30, 2018.
This statute dismisses & seals, via a 30-day period, previous convictions for possessing, farming, distributing, or transiting a maximum of 28.5 g of marijuana or a maximum of 8 grams of potent cannabis.
In other words, such dismissed & sealed convictions do not appear in the scope of criminal screening for employment.
AB-2188 became a legislative bill on the 18th of September 2022, and Governor Gavin Newsom of California signed it into law.
This law banning discrimination against job candidates and workers on the basis of their non-workplace marijuana use takes effect Monday, 1st Jan 2024.
Employers are only permitted to take action in response to positive drug screening results if the tests indicate the existence of delta-9-tetrahydrocannabinol, the psychoactive element, while AB-2188 does not forbid screening for marijuana.
Due to the identification of non-psychoactive compounds that are still present in the system long after a person has consumed marijuana & is no longer impaired, many drug tests yield positive findings for marijuana.
The following are some exceptions to the law:
In order to obtain damages, applicants and workers who feel their employers have broken this legislation may submit discrimination complaints to the CRD (California Civil Rights Department) and launch suits for discrimination against them.
14. Law on Pay Transparency
On September 27, 2022, Governor Newsom signed SB 1162 into law and it went into effect on January 1, 2023.
The law mandates that employers include salary ranges and scales for open positions when they post for jobs internally or externally.
This law applies to any employer who employs fifteen or more people.
15. The Fair Chance Law for Home Health Applicants and Caregivers
On January 1, 2023, Cal. AB 1720 went into effect.
So long as they complete the requirements and are granted an exemption by the Dept. of Social Services, this statute permits individuals with prior convictions to find employment as caretakers or home healthcare workers.
Despite licensing regulations, caregiving groups may hire applicants and potential volunteers with qualifying prior offenses who are granted exemptions.
Sexual offenses, felonies, and other convictions are among the ineligible ones.
1. Are pending charges included in California background checks?
According to California Labor Code 432.7, employers are not allowed to inquire about a candidate’s prior arrests that weren’t related to a conviction, convictions that were dismissed or sealed, or any finished diversions.
However, employers are free to inquire about any ongoing criminal charges, & California criminal record checks may reveal them.
2. Can I take into account a candidate’s criminal history while hiring them?
Yes, with a few notable exceptions. Employers are allowed to perform background assessments on candidates, but they must follow California labor rules that specify the appropriate time and method for doing so.
Additionally, after doing a background assessment, companies are required by California law to reveal specific information. Companies must educate themselves on these rules and the ways to follow them if they wish to stay in compliance.
3. What is the historical scope of California’s employment background assessments?
California has a seven-year statute of limitations on reporting criminal convictions. Background checks are not allowed to reveal any misdemeanors, arrests, indictments, complaints, or convictions that are older than that, according to the California Civil Code.
However, arrests that resulted in no conviction, expungements, and full pardons cannot be recorded at all.
For consistency’s sake, California law requires employers to store all employment checks from applicants for at least two years.
4. How much time does it take to run a background check in California?
The time it takes to get pre-employment screening results depends on how you employ the method.
Searching local court data on your own can be a highly time-consuming process.
In normal circumstances, this kind of activity may take weeks.
In most situations, professional agencies can provide background check results relatively quickly, depending on the details you ask for.
Your reports may occasionally arrive in a matter of hours or even days.
5. Where can someone find a sample policy for California background checks?
Establishing a background screening policy is crucial to maintaining uniformity in your testing procedure and preventing legal infractions.
Your background screenings will be in compliance with all applicable regulations if you have a robust policy in place.
For your reference, here is an example policy.
[Company name] Objectives of the background check policy
Hiring and promoting the best-qualified applicants is [COMPANY NAME’S] mission. Checks on background are a crucial component of the recruitment and advancement procedures.
The information disclosed will be utilized in accordance with all applicable state, federal, and local regulations whenever [COMPANY NAME] is required to perform a background check in order to make recruiting and other hiring decisions.
Background Check Scope
Background checks will be performed on all candidates and staff members during the recruiting process and other employment-related decisions made by the business.
Procedures
Background verification
Background checks at [COMPANY NAME] are carried out in accordance with all applicable federal and state regulations, such as the California ICRAA (Investigative Consumer Reporting Agencies Act), the FCRA (Fair Credit Reporting Act), and the CCRAA (California Consumer Credit Reporting Agencies Act), as follows:
Prior to conducting background checks on employees or applicants, [COMPANY NAME] will give written notice in advance of its intention to do so and give the employees or applicants a chance to obtain a complimentary copy of the relevant reports.
Reports on consumer credit
Although not always, [COMPANY NAME] does occasionally receive consumer credit reports.
When considering a candidate or employee for a position of leadership where access to the business’s bank account or credit card information is part of the job description, for instance, the organization may ask for the candidate’s consumer credit report.
The business always complies with all applicable federal and state rules when requesting a consumer credit report.
Use of Information and Confidentiality
Background checks shall be the only source of information used by [COMPANY NAME] for making hiring decisions. Every piece of information gathered from a background check will be kept private and in accordance with the law.
Only those selected and allowed persons with Human Resources clearance can access or review background check reports.
No data gathered from background check results will be shared with other staff members or the general public.
Reach out to Human Resources for additional details regarding [COMPANY NAME]’s policy on background checks.
6. What makes you disqualified on a California background check?
For a variety of reasons, applicants may be rejected from positions based on the results of their background checks.
Below is a description of a few of the most frequent causes.
A. Not passing the pre-employment drug test
Employment offers from some companies are contingent on clearing pre-employment drug tests. To ensure workplace safety, these kinds of testing are requested.
The preliminary offer for employment will probably be withdrawn by the business if the candidate fails a pre-employment drug test.
B. Lying About Previous Work Experiences
Finding out if a candidate has lied about their prior work is a usual explanation for why employers may choose not to hire them after they have completed background checks.
By pretending to have held more responsible roles or by manipulating their work dates to conceal gaps, some applicants attempt to exaggerate their experience.
These kinds of falsehoods are easily detected by employers who seek education verification investigations.
C. Misrepresenting Academic Background
Lying about attending famous universities or earning degrees that one never obtained is another frequent issue that can lead to job rejection.
These kinds of lies are visible to employers who require education verification checks, and they are likely to reject applicants who tell falsehoods.
D. Possessing Criminal Convictions That Preclude You
Even those with criminal backgrounds can still obtain employment. Criminal convictions do not always disqualify a person.
A criminal conviction that is directly associated with the job requirements may legally be grounds for an employer to reject a candidate for employment.
To make an adverse employment choice, the employer needs to investigate the particular conviction on an individual basis and adhere to the correct legal procedure.
E. Having a poor record of driving
Applying for driving-related employment, including truck driver jobs, usually requires applicants to have their driving histories checked. Employers are inclined to reject applicants with a history of significant traffic convictions or a large number of traffic infractions.
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