California Employment Background Screening Laws in 2025

Navigating California’s employment laws in 2025 can feel overwhelming. Employers must comply with strict background screening regulations. These rules ensure fair hiring practices. They also protect job applicants from discrimination. This guide breaks down key laws, including criminal history limits, Ban-the-Box rules, credit report restrictions, and AI usage. Let’s dive into the details.

Why Compliance Matters

California’s employment background screening laws aim to promote fairness. The Fair Chance Act, often called “Ban-the-Box,” is central. It restricts when employers can ask about criminal history. Additionally, laws limit credit report use and regulate AI in hiring. Non-compliance risks lawsuits and fines. Understanding these rules helps employers stay compliant.

Key 2025 Employment Screening Laws in California

California’s Fair Chance Act leads the pack. It’s often called the “Ban the Box” law. Employers with five or more employees can’t ask about criminal history until after a conditional job offer. This gives applicants a fair shot to showcase their skills first. Once an offer is made, employers can run a criminal background check. But there’s a catch: the conviction must relate directly to the job’s duties to justify rejecting an applicant.

The Fair Credit Reporting Act (FCRA) applies too

Before running a background check, employers must get written consent from the candidate. They must also provide a clear disclosure that a check will be conducted. If the check leads to a rejection, employers must send a pre-adverse action notice, including a copy of the report, and give the applicant five business days to respond.

The Investigative Consumer Reporting Agencies Act (ICRAA)

In California there is a more restrictive law called Investigative Consumer Reporting Agency Act (ICRAA). Under the ICRAA a consumer is given greater protections than the FCRA.
It limits how far back checks can go among other laws. Employers can’t see convictions older than seven years. Non-conviction records, like arrests without charges, are off-limits too. This ensures outdated or irrelevant information doesn’t block job opportunities.

Local laws

Like those in Los Angeles, add more rules. For example, employers must provide a written assessment linking a candidate’s criminal history to job duties if they plan to rescind an offer.
The Fair Chance Ordinance for Employers went into effect September 3, 2024. Los Angeles County Requires Workplace Posting.
The Ordinance prohibits covered employers from preventing or discouraging applicants or employees with a criminal history from applying for or responding to job solicitations, postings, announcements, and advertisements.

How many years back to consider criminal offenses?

California generally limits criminal conviction lookback periods. For most employers, criminal convictions can be reported for seven years. This rule applies from the date of disposition. It also applies from release from prison or parole.

• However, certain exceptions exist. Specific jobs might have different rules. For example, positions requiring specific licenses may differ. Also, some roles with direct access to vulnerable populations might vary.
• The general 7-year limitations under the FCRA do not apply to employee’s whose salary is $75,000.00 or more
• Non-conviction information is typically excluded. This includes arrests not leading to conviction. Sealed, dismissed, or expunged records are also excluded. Participation in diversion programs is similarly protected.

Ban-the-Box Laws in California

California’s Ban-the-Box laws prevent early criminal history inquiries. The Fair Chance Act applies to employers with five or more employees. Here are the key rules:

• No criminal history questions before a conditional job offer.
• Employers cannot state “no felons” in job ads.
• An individualized assessment is required before denying a job based on convictions.
• Applicants get five business days to respond to pre-adverse action notices.
• Certain convictions, like expunged records or juvenile offenses, are off-limits.
• Los Angeles County’s Fair Chance Ordinance adds stricter rules. Employers must provide written rationale for background checks. They also face extended response periods for applicants.