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California’s Fair Chance Act, which restricts when and how employers may consider an applicant’s criminal history, has been in effect for just over 7 years. However, the law is always changing, and in 2025, new local laws are adding additional prohibitions.
A QUICK SUMMARY OF CALIFORNIA’S FAIR CHANCE ACT
In general, the California Fair Chance Act aims to reduce barriers to employment for individuals with criminal histories. Generally, the law prohibits employers with five (5) or more employees from asking applicants about criminal conviction history before making a job offer.
When an employer wishes to withdraw a job offer due to criminal background information, employers must adhere to the following criteria:
- Conduct an individualized assessment of the offense and its relation to the offered job
- Provide the potential employee with written notice explaining the concern
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Give the potential employee at least five (5) business days to respond to the concern
- Consider the potential employee’s explanation before making a final decision on rescinding the offer
IMPORTANT CHANGES TO THE ACT AND EMPLOYER REQUIREMENTS IN LOS ANGELES COUNTY
Beginning on September 3, 2025, more restrictive requirements are being imposed by the Los Angeles County Fair Chance Ordinance (FCO) on employers. Below is a list of changes:
1. Employers must provide applicants with their background report prior to discussing the criminal history of such applicant. This means that even after an offer of employment is made, employers may not even ask an applicant about their criminal history until after the applicant has been provided with their background report and the applicant has had the opportunity to review it.
2. While California state law allows for email notice of preliminary and final adverse employment action notices to applicants, LA County requires that each notice be physically mailed to applicants. As mentioned above, the applicant has five (5) business days to respond. The response clock starts from the date on which the notice is mailed. Also, employers must retain proof of mailing and track these timelines carefully.
3. Employers must complete two (2) distinct written assessments during the process of determining if an offer will be rescinded. This includes the initial assessment, which is provided with the preliminary notice, and the final assessment, which is completed after reviewing the applicant’s response and before issuing a final decision on the applicant’s employment. These documents must include each reason for rescinding the offer and be maintained and kept for at least 4 years.
4. Penalties for Non-Compliance: Violations may result in $5,000 per violation for first offenses, and $10,000–$20,000 per applicant for repeat violations.
EFFECT ON EMPLOYERS AND HUMAN RESOURCES PROFESSIONALS
The changes in the law in Los Angeles County have some important practical effects on employers and human resources professionals. Depending on current hiring and onboarding processes, important changes may be necessary to ensure compliance with the updated laws. Here are some helpful tips to take into consideration:
- Review and remove any questions on job applications and other pre-offer materials relating to an applicant’s criminal history.
- Refrain from asking about or discussing an applicant’s criminal background until after a conditional offer has been made and providing the criminal history report to the candidate.
- Update all offer letters to clearly reflect that employment is contingent upon a review of background results.
- Implement processes to physically mail (not only email) both preliminary and final adverse action notices to applicants. Be sure to keep all copies and proof of mailing for at least 4 years.
- Implement training for all team members who will be involved in the hiring and onboarding process of new applicants and potential employees.
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