California Background Check Laws for Employers (2026)
California background check laws are the strictest in the nation. Two state FCRAs, the Fair Chance Act, and local ordinances all shape every hire.
This guide explains the statutes, lookback limits, application question rules, and agencies California employers need to know before screening applicants.
California Background Check Laws at a Glance
First, scan this table to see which rules apply to your hiring. Then, read the detailed sections below.
Seventeen state and local alerts, including a new Court of Appeal decision on the Fair Chance Act, appear in the What Changed section.
| Topic | Statute or Regulation | What It Does | Administered By |
|---|---|---|---|
| Consumer reports | FCRA, 15 U.S.C. § 1681 et seq.; Cal. Civ. Code § 1786 et seq. (ICRAA) | Requires a standalone disclosure, written consent, and a box to request a report copy. | FTC and CFPB; ICRAA is enforced through civil lawsuits |
| Credit reports | Cal. Civ. Code § 1785 et seq. (CCRAA) | Requires written notice before use, plus state reporting duties for credit bureaus. | Enforced through civil lawsuits |
| State criminal records | Cal. Penal Code § 11105; DOJ Live Scan | Limits state fingerprint checks to agencies and employers authorized by statute. | California Department of Justice |
| Fair chance / ban the box | Cal. Gov. Code § 12952; 2 CCR § 11017.1 | Bars conviction questions before a conditional offer at employers with 5 or more employees. | Civil Rights Department |
| Individualized assessment | Cal. Gov. Code § 12952(c); 2 CCR § 11017.1 | Requires a written assessment, a preliminary notice, five business days to respond, and a final notice. | Civil Rights Department |
| Sealed and expunged records | Cal. Lab. Code § 432.7; Penal Code §§ 851.93, 1203.425 | Bars questions about arrests without conviction, diversion, and dismissed or sealed convictions; DOJ seals eligible records monthly. | California Department of Justice; civil lawsuits |
| Lookback limits | Cal. Civ. Code § 1786.18 | Caps reported records at seven years from disposition, release, or parole. No salary exception. | Enforced through civil lawsuits |
| Employment credit checks | Cal. Lab. Code § 1024.5 | Allows credit reports only for listed positions, such as managers and cash handlers. | California Labor Commissioner |
| Salary history | Cal. Lab. Code § 432.3 | Bars salary history questions; employers with 15 or more employees must post pay scales. | California Labor Commissioner |
| Drug and marijuana testing | Cal. Gov. Code § 12954 | Bars penalties for off-duty cannabis use and for tests that detect only non-psychoactive metabolites. | Civil Rights Department |
| Application questions | Cal. Gov. Code § 12940(d); 2 CCR § 11016(b)-(c) | Bars non-job-related questions about protected traits and photographs at employers with 5 or more employees. | Civil Rights Department |
| Driver’s license rules | Cal. Gov. Code § 12940 (SB 1100) | Postings may not require a license unless driving is reasonably expected to be a job function. | Civil Rights Department |
| Commercial drivers | Cal. Veh. Code § 1808.1 | Requires a current DMV record and enrollment in the Employer Pull Notice program. | California DMV |
| E-Verify | Cal. Lab. Code § 2814 | Bars running applicants through E-Verify before a job offer unless federal law requires it. | California Labor Commissioner |
| Social media | Cal. Lab. Code § 980 | Bars requests for applicant or employee social media passwords. | California Labor Commissioner |
| AI hiring tools | 2 CCR §§ 11008.1, 11009, 11013, 11017.1; 11 CCR § 7001 et seq. | Automated systems may not screen criminal history before an offer; ADS records are kept four years. | Civil Rights Department; California Privacy Protection Agency |
| Local ordinances | L.A. Mun. Code ch. XVIII, art. 9; L.A. County Code ch. 8.300; S.F. Police Code art. 49 | Los Angeles City, LA County, and San Francisco add stricter steps and seven-year limits. | BCA; DCBA; OLSE |
| New laws for 2027 | AB 1697; SB 947; AB 1331; AB 2495 and others | Fifteen employment laws signed in 2026 take effect in 2027 and 2028. See the employer alerts. | Labor Commissioner; Civil Rights Department |
How the FCRA Applies to California Employers
Every California employer that orders a report from a background screening company must follow the federal Fair Credit Reporting Act. The FTC and the CFPB enforce it.
California then layers two state versions of the FCRA on top. In short, the four federal steps below apply to every hire, and the state rules add to each one.
Clear Disclosure
Give the applicant a standalone written disclosure before you order the report. 15 U.S.C. § 1681b(b)(2) forbids extra terms on that form.
Written Authorization
Next, obtain the applicant’s signed permission after a conditional offer. Our mobile e-signature platform captures FCRA and ICRAA consent from any phone.
Pre-Adverse Action
Before you decide, send a copy of the report and the CFPB Summary of Rights. In California, pair it with the Fair Chance Act preliminary notice and assessment.
Adverse Action Notice
Allow at least five business days to respond. Afterward, send the notice that 15 U.S.C. § 1681m(a) requires and the final Fair Chance Act notice.
California’s Two State FCRAs: ICRAA and CCRAA
The Investigative Consumer Reporting Agencies Act (ICRAA), Cal. Civ. Code § 1786 et seq., covers most background checks. Meanwhile, the Consumer Credit Reporting Agencies Act (CCRAA), Cal. Civ. Code § 1785 et seq., covers credit reports.
ICRAA requires a standalone disclosure and written authorization. Under Cal. Civ. Code § 1786.16, the form must include a box to request a copy of the report. You must then send that copy within three business days.
In addition, Civ. Code § 1786.53 covers public records you obtain without a screening company. You must give the applicant a copy within seven days.
Why ICRAA matters: disclosure mistakes drive many California class actions. Consequently, use a California-specific form, not a generic federal one.
Where California Criminal Records Come From
California has no public name-based state repository for private employers. The Department of Justice releases state criminal history only through fingerprint Live Scan requests from agencies authorized by statute.
Consequently, most private employers screen through the Superior Courts. California has 58 counties, and each one runs its own Superior Court with its own criminal index.
Real-Time Superior Court Data
BCS Background Screening LLC runs a California real-time statewide search that queries 39 Superior Courts at once. Together, those counties cover more than 96% of the state’s population.
The search returns live court data, not a stale private database. BCS is a private screening wholesaler, not a government agency.
County Criminal Court Searches
For the remaining counties, or for a deeper file review, a trained researcher searches the court index directly. Our county criminal court search covers Los Angeles, San Diego, Orange, and every other Superior Court for $18 plus any court fees.
Every result is filtered for ICRAA’s seven-year limit and the protected records in Labor Code § 432.7 before it reaches your report. Federal offenses require a separate federal criminal search of California’s four federal districts.
How Far Back Do Background Checks Go in California?
California sets a strict seven-year limit. Under Cal. Civ. Code § 1786.18, screening companies cannot report arrests, indictments, convictions, or other adverse public-record items older than seven years from disposition, release, or parole.
Federal law differs. Under 15 U.S.C. § 1681c, convictions carry no time limit. California reports therefore follow the stricter state rule, and the parallel rule for credit reports sits in Civ. Code § 1785.13(a)(6).
Criminal Records
Arrests and convictions older than seven years stay off California investigative reports under § 1786.18(a)(7).
Salary Exemption
Unlike the federal FCRA, ICRAA has no $75,000 salary exception. Only life insurance underwriting of $250,000 or more and regulator-required checks are exempt under § 1786.18(b).
Applicant Response Time
Applicants get at least five business days to answer a Fair Chance Act preliminary notice.
Local Ordinances
San Francisco and unincorporated Los Angeles County also bar most employers from considering convictions older than seven years.
The EEOC rescinded its 2012 guidance on arrest and conviction records on October 28, 2026. Title VII still bars using criminal history as a proxy for race or national origin, and the disparate-impact rule in 42 U.S.C. § 2000e-2(k) remains law. So keep weighing the nature of the offense, the time elapsed, and the duties of the job before you act on any record.
Records California Employers Cannot Ask About or Use
Sealed, Expunged, and Dismissed Records
Under Cal. Lab. Code § 432.7, you cannot ask about or use convictions that were judicially dismissed, sealed, expunged, or statutorily eradicated. The same rule covers pretrial and post-trial diversion.
California treats a plea followed by dismissal the same as a diversion. So, a conviction dismissed under Penal Code § 1203.4 is off limits whether the deferral is open or completed.
California also clears many records automatically. The Department of Justice seals eligible arrests and convictions on a monthly cycle under Penal Code §§ 851.93 and 1203.425.
Relief does not delete the record. However, DOJ limits who can see it, and courts restrict public access.
Arrests and Non-Convictions
Section 432.7 also bars asking about or considering arrests or detentions that did not result in conviction. Likewise, screening companies may not report such arrests except while judgment is pending (Civ. Code § 1786.18(a)(7)).
Two exceptions exist. Any employer may ask about an arrest for which the person is out on bail or on their own recognizance pending trial.
In addition, health facilities may ask about arrests for specified sex offenses (positions with regular patient access) or controlled-substance offenses (positions with access to drugs) under § 432.7(f).
Juvenile Records
Juvenile court information may not be requested or used under Labor Code § 432.7. Treat any juvenile matter as if it does not exist.
Marijuana Convictions
Under Cal. Lab. Code § 432.8, marijuana convictions older than two years may not be asked about or considered. Newer cannabis-related rules on testing appear in the Other Rules section.
Put it into practice: first, remove arrest questions from every form. Then, confirm your screening vendor filters protected records before you see them.
California Fair Chance Act: Ban the Box Rules
California bans the box for employers with five or more employees. The Fair Chance Act, Cal. Gov. Code § 12952, took effect in 2018, and the Civil Rights Department enforces it.
You cannot ask about, seek, or consider conviction history until after a conditional offer. Job ads and applications may not state that people with records need not apply.
The amended regulations in 2 CCR § 11017.1, effective October 1, 2023, go further. They cover existing employees who apply for a different position, staffing agencies, and any entity that evaluates conviction history on your behalf.
They also bar considering criminal history the applicant volunteers before the offer. Exempt positions include those where a law requires a check, criminal-justice agencies, and farm labor contractors.
The Individualized Assessment and Notice Steps
Before withdrawing an offer, complete a written individualized assessment. Consider these three core factors:
- The nature and gravity of the offense or conduct.
- The time that has passed since the offense, conduct, or completion of the sentence.
- The nature of the job held or sought.
Next, send a preliminary written notice that identifies the disqualifying conviction, with a copy of the report. The applicant then gets at least five business days from receipt to respond.
When the applicant disputes accuracy in writing and is gathering evidence, they get five more business days. Therefore, build extra time into your hiring calendar.
Timing matters because 2 CCR § 11017.1 sets deemed-receipt rules. A mailed notice is deemed received five calendar days after mailing to a California address, ten days out of state, and twenty days outside the U.S.; an emailed notice is deemed received two business days after sending.
If the candidate provides evidence of rehabilitation, mitigating circumstances, or report inaccuracies, perform a second written assessment that considers the response. Finally, send a final written notice that states the right to file a complaint with the Civil Rights Department.
In addition, you still owe the FCRA pre-adverse and adverse action notices. The Civil Rights Department publishes a Sample Criminal History Individual Assessment Form as a downloadable PDF.
Court of Appeal, October 2026: in McInerney v. Regents, the court held that the Fair Chance Act sets procedural requirements only. Judges review your process, not your conclusion, so document every assessment and notice. Read the McInerney alert for details.
City of Los Angeles
The Fair Chance Initiative for Hiring Ordinance, L.A. Mun. Code ch. XVIII, art. 9, covers employers with ten or more employees since January 22, 2017. It bars criminal history questions until after a conditional offer.
To withdraw an offer, complete a written individualized assessment on the city form. Give the applicant the assessment and the report, wait at least five business days, consider any response, and complete a written reassessment.
Job ads must state that qualified applicants with criminal histories will be considered. Post the notice and keep records for three years. The Bureau of Contract Administration enforces the ordinance.
Los Angeles County (Unincorporated Areas)
Since September 3, 2024, the Fair Chance Ordinance for Employers, L.A. County Code ch. 8.300, covers employers with five or more employees. It applies to work performed in unincorporated areas; incorporated cities other than Los Angeles follow the state Fair Chance Act.
Job postings must state that qualified applicants with arrest or conviction records will be considered. They may not use exclusionary language, and they must list any laws that restrict hiring for the position and the material job duties to which criminal history may relate.
The written conditional offer must state that it is contingent on a criminal-history review, give the good-cause justification, and list every type of information to be reviewed. That list includes education, employment, credit, driving, and drug testing.
Before withdrawing an offer, complete a written initial individualized assessment and send the preliminary notice with the assessment and the report. Wait at least five business days, and at least ten additional business days if the applicant says they are disputing accuracy or gathering evidence.
Then complete a second written assessment and send a final notice with complaint rights. Post the DCBA notice, keep records four years, and apply the rules to current employees seeking promotion, contractors, and freelancers.
Convictions older than seven years from disposition may not be considered, except for positions serving minors, dependent adults, or seniors or administering public funds. Arrests without conviction, sealed or dismissed convictions, diversion, juvenile records, infractions, and decriminalized conduct may never be considered. The Department of Consumer and Business Affairs enforces it.
City and County of San Francisco
The Fair Chance Ordinance, S.F. Police Code art. 49, covers employers with five or more employees worldwide. Job postings must state that qualified applicants with arrest and conviction records will be considered in a manner consistent with the ordinance.
You may never consider arrests not leading to conviction (unresolved arrests excepted), diversion or deferral programs, infractions, juvenile records, dismissed or expunged convictions, or decriminalized conduct. Convictions older than seven years from sentence completion are also off limits unless the position supervises minors or dependent adults.
Before an adverse action, give the applicant a copy of the report, identify the item relied on, and allow at least seven days to present evidence of inaccuracy, rehabilitation, or mitigation. Then conduct an individualized assessment that weighs the nature and gravity of the offense.
Amendments took effect August 10, 2026. You must now confirm receipt of the applicant’s response within 14 days, delay adverse action for a reasonable period after that confirmation, and issue the final decision within 30 days of the response (or of the notice if no response).
You must withdraw the proposed action if the applicant makes a reasonable factual showing that it rests solely on a conviction that cannot be a directly-related conviction. You also may not consider out-of-state convictions or unresolved arrests for conduct lawful in California involving abortion-related health care, gender-affirming care, drag performance, or miscarriage or stillbirth.
Administrative penalties are $500 to $1,000, $1,000 to $2,000, and $2,000 to $4,000 per person for first, second, and later violations, plus liquidated damages of $500 to $1,000 per person in a civil action. Post the updated OLSE notice, keep records for three years, and read the San Francisco alert for the new deadlines.
What a California Job Application May Ask
California has its own pre-employment inquiry statute. Cal. Gov. Code § 12940(d) makes it unlawful for an employer with five or more employees to make any non-job-related inquiry, verbally or on an application form, that expresses any limitation, specification, or discrimination as to a protected trait.
The protected traits include race, religious creed, color, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, reproductive health decision-making, and veteran or military status.
The Civil Rights Council’s regulations at 2 CCR § 11016(b)-(c) add two rules. Photographs may not be required as part of an application, and application forms may not be coded to identify protected traits.
The exceptions are narrow: a bona fide occupational qualification, federal or state security regulations, age inquiries the law compels or provides for, and applicant-flow data collected for statistical purposes under 2 CCR § 11016(b)(2). The federal rules below apply at the same time.
Sex, Marital Status, Religion, and Photographs
Title VII, 42 U.S.C. § 2000e-2, makes sex a lawful question only where it is a bona fide occupational qualification. Almost no job meets that test.
The EEOC treats questions about race, sex, religion, marital status, children, or pregnancy as evidence of intent to discriminate. The EEOC also says employers should not ask for a photograph before hire.
Ask instead: whether the applicant can work the schedule, travel, and overtime the job requires. Request a photograph only after hire for a badge.
Date of Birth and Age
The ADEA protects applicants 40 and older at employers with 20 or more employees. Under 29 C.F.R. § 1625.5, a date-of-birth question is closely scrutinized because it deters older applicants, and California lists age as a protected trait at five or more employees.
Your screening company still needs the date of birth to match criminal records. So, collect it on the FCRA and ICRAA authorization form after the conditional offer, never on the application.
Ask instead: “Are you at least 18 (or 21) years old?” where the job has a legal minimum age.
Disability, Health, and Workers’ Compensation
The ADA, 42 U.S.C. § 12112(d)(2), bars disability-related inquiries and medical exams before a conditional offer. Questions about health, prescriptions, prior workers’ compensation claims, or sick leave all count.
GINA, 42 U.S.C. § 2000ff-1(b), separately bars requests for family medical history. Post-offer exams must apply to every entering employee in the job category.
Ask instead: whether the applicant can perform the essential functions with or without reasonable accommodation.
Citizenship, National Origin, and Military Discharge
The Immigration and Nationality Act, 8 U.S.C. § 1324b, bars citizenship-status discrimination at employers with four or more employees. Pre-hire questions about birthplace, immigration status, or a “green card” are evidence of a violation.
USERRA, 38 U.S.C. § 4311, protects uniformed service. Do not ask the type of military discharge on an application; ask only after the offer where a law or license requires it.
Ask instead: “Are you legally authorized to work in the United States?” and “Will you need sponsorship for an employment visa?”
EEO self-identification is different. Collect race, ethnicity, sex, veteran, and disability status on a separate, voluntary form kept away from decision-makers. Private employers with 100 or more employees file the EEO-1 report each year under 29 C.F.R. § 1602.7.
Credit Reports, Salary History, Drug Testing and More
Employment Credit Reports
Under Cal. Lab. Code § 1024.5, employers may use credit reports only for listed positions. Those include managerial positions under the executive exemption, Department of Justice positions, sworn peace officers and law enforcement, and positions where the law requires the information.
The list also covers positions with regular access to bank or credit-card account information, Social Security numbers, and dates of birth beyond routine retail transactions. Named signatories on the employer’s bank or credit-card account, positions authorized to enter financial contracts, positions with access to trade secrets, and positions with regular access to $10,000 or more in cash qualify as well.
The disclosure must state the basis for the report. Civ. Code § 1785.20.5 adds the CCRAA notice duties, and the California Labor Commissioner enforces § 1024.5.
Salary History and Pay Transparency
Labor Code § 432.3 bars asking about or relying on salary history. Employers must also provide the pay scale on reasonable request.
Under SB 1162, employers with 15 or more employees must include the pay scale in job postings, including postings placed by third parties. Since January 1, 2026 (SB 642), the pay scale means a good-faith estimate of the salary or hourly wage range you reasonably expect to pay upon hire.
San Francisco’s Parity in Pay Ordinance, S.F. Labor & Employment Code art. 61, adds a local salary history ban for every employer.
Drug and Marijuana Testing
Under Gov. Code § 12954 (AB 2188, effective January 1, 2024), you cannot penalize off-duty cannabis use away from the workplace, medical or adult use. You also cannot rely on a test that detects only non-psychoactive cannabis metabolites.
SB 700 adds that you may not ask about prior cannabis use, except through criminal history you may lawfully consider. Tests must detect active THC or impairment, and you may still bar use, possession, or impairment at work.
There is no duty to accommodate medical cannabis use at work. Exempt: building and construction trades, positions requiring a federal background investigation or security clearance, and testing required by state or federal law, such as DOT testing for commercial drivers.
Motor Vehicle Records
Employers of commercial drivers must pull a DMV record under Vehicle Code § 1808.1. They must also join the DMV Employer Pull Notice program, which alerts them to convictions and suspensions.
Meanwhile, Gov. Code § 12940 (SB 1100, since January 1, 2025) bars stating that a driver’s license is required in ads or applications. The exception is when driving is reasonably expected to be a job function and no alternative transportation would be comparable in travel time or cost.
BCS Background Screening LLC pulls California driving histories through its motor vehicle records search with a DPPA-compliant permissible purpose on file.
E-Verify and Form I-9
E-Verify is voluntary in California. Under Cal. Lab. Code § 2814, you may not run applicants through E-Verify before an offer of employment except as federal law requires, and you must give notice of tentative nonconfirmations.
Every employer must still complete Form I-9 for each new hire under 8 C.F.R. § 274a.2. Finish Section 1 by the first day of work and Section 2 within three business days.
Social Media and Passwords
California’s social media password law, Cal. Lab. Code § 980, bars asking applicants or employees for their social media passwords. Keep any public-profile review job-related and consistent.
Automated and AI Hiring Tools
The Civil Rights Council’s automated-decision system regulations took effect October 1, 2025. As the Civil Rights Department explains, automated tools cannot screen criminal history before an offer, and employers and their agents must keep ADS data and employment records for four years (2 CCR § 11013).
In addition, the CPPA automated decisionmaking technology regulations, 11 CCR § 7001 et seq., took effect January 1, 2026. They add pre-use notice, opt-out, and access duties for covered businesses that use the technology for hiring decisions, with compliance required by January 1, 2027.
From July 1, 2027, SB 947 (the No Robo Bosses Act, Lab. Code § 1520 et seq.) bars relying solely on an automated system for discipline or termination. See the SB 947 alert.
Industry-Specific Background Check Requirements in California
Several California laws require fingerprint checks for jobs that involve children, patients, or public trust. Below are the rules employers ask about most.
Fingerprint Checks (DOJ Live Scan)
Only agencies authorized by statute can request state fingerprint checks. The DOJ fingerprint program processes them. Administered by the California Department of Justice.
Child and Community Care
Care facility staff need DOJ and FBI Live Scan checks. The Caregiver Background Check Bureau also checks the Child Abuse Central Index. Administered by the California Department of Social Services.
Healthcare and Patient Access
Health facilities may ask about arrests for specified sex offenses (regular patient access) or controlled-substance offenses (access to drugs) under Lab. Code § 432.7(f). Roles paid with federal healthcare funds also need HHS-OIG exclusion screening before hire and monthly thereafter (42 U.S.C. § 1320a-7).
Commercial Drivers
Enroll covered drivers in the Employer Pull Notice program under Cal. Veh. Code § 1808.1. The DMV then alerts you to convictions and suspensions. DOT Part 40 testing and FMCSA Clearinghouse queries also apply to CDL roles.
Financial Roles
Credit checks remain available under Cal. Lab. Code § 1024.5 for managers, signers, and roles handling bank data or $10,000 or more in cash. Enforced by the California Labor Commissioner.
Record Relief Exceptions
Fingerprint checks for certain regulated jobs can still show relieved convictions, as Penal Code § 1203.425 allows. Administered by the California Department of Justice.
Automated Hiring Tools
Keep automated decision records for four years under the FEHA ADS regulations. Employers stay liable for bias created by vendor tools. Enforced by the Civil Rights Department.
Drug Testing
Use tests that detect current impairment, not non-psychoactive metabolites, under Cal. Gov. Code § 12954. Building and construction trades and federally regulated roles are exempt. Enforced by the Civil Rights Department.
Turn California Law Into a Written Screening Policy
California rules change with the job, the pay, and the city. As a result, one national template rarely fits every position.
ScreeningPolicy.com puts the rules for one job and one work location into a single cited report.
What Changed for California Employers in 2026
A Court of Appeal decision on the Fair Chance Act, fifteen employment laws signed in 2026, San Francisco’s amended ordinance, and two federal changes all affect California screening. Most new laws take effect on January 1, 2027, so plan for them now.
Court of Appeal: judges review your Fair Chance Act process, not your conclusion (McInerney, Oct. 2026)
In McInerney v. Regents of the University of California (Cal. Ct. App., 2d Dist., Div. 2, No. B339467, filed September 18, 2026, certified for publication October 13, 2026), the court held that the Fair Chance Act sets procedural requirements only.
A court or jury may not second-guess the outcome of an employer’s individualized assessment. The Act itself does not bar considering convictions older than seven years.
An applicant who proves a technical violation, such as a deficient notice, recovers damages only by showing the employer would otherwise have hired them. The process is where the liability sits.
Two cautions remain. A screening company still may not report convictions older than seven years under ICRAA (Civ. Code § 1786.18), and relying on older convictions found elsewhere can trigger the Civil Rights Department’s rebuttable presumption that the practice is not job-related in a disparate-impact claim under FEHA (2 CCR § 11017.1).
What to do: Keep deferring criminal-history questions until after the conditional offer, document the written individualized assessment and both notices, and give the full response period. The Civil Rights Department continues to pursue process violations.
Source: McInerney v. Regents of Univ. of Cal., No. B339467 (Cal. Ct. App. Sept. 18, 2026, pub. Oct. 13, 2026); Cal. Gov. Code § 12952; 2 CCR § 11017.1. Read the opinion
Stay-or-pay repayment terms are banned in contracts signed on or after Jan. 1, 2027
AB 1697, signed September 30, 2026 as an urgency law, delays California’s stay-or-pay ban (AB 692 of 2025) by one year. It now applies only to contracts entered into on or after January 1, 2027, and the 2025 version is inoperative for calendar year 2026.
From that date, an employment contract may not require a worker to repay a debt, restart collection on a debt, or pay any penalty, fee, or cost because the job ends.
Narrow exceptions remain, each with its own conditions: government loan-repayment programs, tuition for a transferable credential, approved apprenticeships, discretionary bonuses under a separate agreement, and advanced paid time off of no more than 40 hours.
A term that violates the law is void. The employer is liable for the greater of actual damages or $5,000 per worker, plus attorney’s fees.
What to do: Have counsel review offer letters and sign-on, retention, relocation, and training repayment agreements before January 1, 2027.
Source: AB 1697 (Stats. 2026, ch. 889); Cal. Bus. & Prof. Code § 16608; Cal. Lab. Code § 926. Read AB 1697 on the California Legislature site
Automated decision systems: no discipline or termination on an algorithm alone
SB 947, the No Robo Bosses Act, adds Labor Code §§ 1520 to 1526.7. From July 1, 2027, an employer may not rely solely on an automated decision system (ADS) when making a disciplinary or termination decision.
If you rely primarily on ADS output, a human must corroborate it with other information such as supervisor evaluations, personnel files, work product, or witness interviews. Output that cannot be corroborated may not be used.
When the employee is told of the decision, you must give a separate plain-language notice stating that an ADS was primarily relied on, that a human reviewed and corroborated the output, whom to contact, and that retaliation is prohibited. The employee may also ask for a description of their own data the ADS used.
An ADS may never be used to infer a status protected by FEHA, to violate labor, safety, or civil rights laws, or to predict and act against workers for exercising legal rights. The penalty is $500 per violation, enforced by the Labor Commissioner or a public prosecutor.
The Act does not name hiring decisions. Therefore, the Civil Rights Council regulations (2 CCR § 11008.1 et seq.) and the CCPA automated decisionmaking rules continue to govern automated tools used in hiring.
What to do: Inventory the tools that score attendance, productivity, or conduct, including continuous-monitoring alerts. Then, write the human-review and notice steps into your discipline procedure before July 1, 2027.
Source: SB 947 (Stats. 2026, ch. 859); Cal. Lab. Code §§ 1520–1526.7. Read SB 947 on the California Legislature site
Workplace surveillance: no monitoring of employees in bathrooms
AB 1331 adds Labor Code §§ 1560 to 1565, effective January 1, 2027. An employer may not use a workplace surveillance tool to monitor employees in a workplace bathroom unless a court orders it.
Surveillance tools include video or audio surveillance, geolocation, and any other device or application that collects employee data, activities, communications, or biometrics other than by direct observation.
Employees have the right to leave behind any surveillance tool they carry or wear when they enter a bathroom, except where the law requires them to remain available during a meal or rest period.
A badge or personal alarm required for identification, safety, or access to a locked bathroom is allowed only if it does not detect or record audio or video and has no embedded artificial intelligence.
The penalty is up to $500 per violation, enforced by the Labor Commissioner or a public prosecutor, who may also seek injunctive relief, punitive damages, and attorney’s fees.
What to do: Check camera placement, wearable scanners, badges, and location-tracking apps against the bathroom rule. State in your monitoring policy that employees may leave tracked devices outside.
Source: AB 1331 (Stats. 2026, ch. 851); Cal. Lab. Code §§ 1560–1565. Read AB 1331 on the California Legislature site
AI surveillance: no emotion recognition and no neural data collection
AB 1883 adds Labor Code §§ 1580 to 1583, effective January 1, 2027. A private or public employer may not use a workplace surveillance tool that uses artificial intelligence on employees to recognize, infer, or predict a person’s emotional state.
Employers also may not use such a tool to collect neural data, meaning information generated by measuring the activity of the central or peripheral nervous system.
The law does not prohibit a surveillance tool used to ensure safety or a tool that does neither of those two things. It has a narrow exemption for federally required national-security, defense, and aircraft-development work.
The penalty is up to $500 per violation. The employee, the Labor Commissioner, or a public prosecutor may recover it, and a civil action may seek injunctive relief, punitive damages, and attorney’s fees.
The statute speaks of employees and does not mention job applicants. So, ask counsel before using emotion-analysis features in video interviews.
What to do: Ask the vendors of video, call-monitoring, productivity, and wellness tools in writing whether the product infers mood, stress, or sentiment or reads neural signals. Switch those features off for California employees unless counsel confirms a safety use.
Source: AB 1883 (Stats. 2026, ch. 853); Cal. Lab. Code §§ 1580–1583. Read AB 1883 on the California Legislature site
Immigration-related retaliation: broader ban and penalties up to $10,000 per person
AB 2495 amends Labor Code § 1019, effective January 1, 2027. It is unlawful to use an unfair immigration-related practice to retaliate against a person for exercising a right under any local, state, or federal employment law.
The listed practices are asking for more or different documents than the federal Form I-9 rules require or refusing documents that reasonably appear genuine, using E-Verify in a way the law or the E-Verify agreement does not allow, threatening or filing a false police report, and threatening to contact or contacting immigration authorities.
The amendment adds any other conduct related to a person’s perceived immigration status that would reasonably tend to dissuade someone from exercising those rights.
Applicants and former employees are covered, actual immigration status is irrelevant to liability, and a violation within 90 days of protected activity raises a rebuttable presumption of retaliation.
Remedies include a civil penalty of up to $10,000 per person for each violation, paid to that person, attorney’s fees, and court-ordered suspension of business licenses.
What to do: Train everyone who handles Form I-9, E-Verify, and background screening to ask only for the documents the law requires and never to raise immigration status in response to a complaint.
Source: AB 2495 (Stats. 2026, ch. 748); Cal. Lab. Code § 1019. Read AB 2495 on the California Legislature site
Harassment-prevention training must add an anti-hate speech component by Jan. 1, 2028
AB 1803 amends Government Code § 12950.1. Beginning January 1, 2028, employers with five or more employees must include anti-hate speech training as a component of the existing harassment-prevention training (two hours for supervisors and one hour for other employees, every two years).
The training must give supervisors and employees practical guidance on recognizing, reporting, and confronting workplace speech that vilifies, humiliates, or incites hatred against people based on the characteristics FEHA protects.
The statute does not define hate speech and adds no training hours. A training that already covers the prohibition of unlawful harassment and the prevention of abusive conduct directed at those protected characteristics satisfies the requirement.
What to do: Ask your training provider to confirm in writing that its course meets § 12950.1(a)(4) before 2028, and keep the completion records.
Source: AB 1803 (Stats. 2026, ch. 547); Cal. Gov. Code § 12950.1(a)(4). Read AB 1803 on the California Legislature site
Bereavement leave now covers one designated person
SB 1149 amends Government Code § 12945.7, effective January 1, 2027. Employers with five or more employees must already allow an employee with at least 30 days of service up to five days of bereavement leave on the death of a family member listed in the statute.
The amendment adds a designated person: any individual related to the employee by blood, or whose association with the employee is the equivalent of a family relationship. The employee may identify that person when requesting the leave, and you may limit an employee to one designated person per 12-month period.
The other rules are unchanged. The days need not be consecutive, the leave follows your existing policy and may be unpaid where no policy exists, proof of death may be requested within 30 days of the first day of leave, and requests are confidential.
What to do: Update the bereavement section of your handbook and your leave-request form.
Source: SB 1149 (Stats. 2026, ch. 679); Cal. Gov. Code § 12945.7. Read SB 1149 on the California Legislature site
Pay data reports: a repeat failure to file now costs up to $1,000 per employee
SB 1237 amends Government Code § 12999, operative January 1, 2027. A private employer with 100 or more employees must file a pay data report with the Civil Rights Department on or before the second Wednesday of May each year, covering the prior calendar year.
On the Department’s request, a court must impose a civil penalty of up to $100 per employee for a first failure to file. Under the amendment, a subsequent failure costs up to $1,000 per employee, formerly $200.
The Department may also obtain a compliance order and recover its costs. It will publish each year the total number of reports submitted, in aggregate form.
What to do: Confirm who owns the filing, including the separate report for workers hired through labor contractors where it applies, and calendar the May deadline.
Source: SB 1237 (Stats. 2026, ch. 1019); Cal. Gov. Code § 12999. Read SB 1237 on the California Legislature site
Cal-WARN notices must flag layoffs caused by AI or automation
SB 951 amends the California WARN Act (Labor Code §§ 1400.5 and 1401), effective January 1, 2027. The Act covers an establishment that employs, or employed in the preceding 12 months, 75 or more people, and requires 60 days’ written notice before a mass layoff (50 or more employees in a 30-day period), relocation, or termination.
When the layoff is caused in whole or in substantial part by an AI system or other automated technology replacing or automating positions, the notice must state at the top “This notice is for a technology displacement.”
It must also give the number, classification or occupation, and work location of the affected jobs, the job functions that will be automated, and the category or type of AI system or automating technology. The Employment Development Department will publish summaries of these notices.
The existing civil penalty of up to $500 for each day of violation applies to an employer that fails to give the required notice.
What to do: Add the technology-displacement questions to your reduction-in-force checklist.
Source: SB 951 (Stats. 2026, ch. 860); Cal. Lab. Code §§ 1400.5, 1401, 1402.7. Read SB 951 on the California Legislature site
If this position must hold CPR certification: add opioid overdose reversal (naloxone) training
AB 2150 adds Health and Safety Code § 1797.197b, effective January 1, 2027. An employer operating in California that requires employees to take CPR certification training must also require those employees to complete a separate online video module on the use of naloxone.
The module covers how to recognize an opioid overdose, how to respond, and how to administer naloxone or another FDA-approved opioid antagonist. The Emergency Medical Services Authority approves the modules, and the employer pays the cost.
CPR, first aid, or other training the Authority finds meets the standard counts if the employer keeps the documentation. The law does not create a duty for an employee to administer naloxone.
What to do: If this position must hold CPR certification, add the approved module to onboarding and keep the completion record with the certification.
Source: AB 2150 (Stats. 2026, ch. 384); Cal. Health & Safety Code § 1797.197b. Read AB 2150 on the California Legislature site
If you bid on local public works: disclose five years of wage and hour violations
AB 1838 adds Public Contract Code § 2011, effective January 1, 2027. As a condition of bidding on a local agency public works contract, a contractor must disclose in writing any federal, state, or local wage and hour violations within the past five years.
Covered violations include unpaid wages, overtime, meal or rest break violations, and misclassification. The disclosure must include documents showing that each was corrected or resolved and that fines, penalties, and back wages were paid in full.
A violation means a final judgment, order, or determination; a matter under appeal does not disqualify a bidder that has secured payment, for example by bond. Failure to disclose may disqualify the bid, subject to the agency’s appeal process.
Contracts covered by a project labor agreement, and projects whose prequalification already requires the same five-year disclosure, are exempt.
What to do: Build a five-year log of wage and hour judgments, citations, and proof of payment before your next bid.
Source: AB 1838 (Stats. 2026, ch. 551); Cal. Pub. Contract Code § 2011. Read AB 1838 on the California Legislature site
Workplace violence restraining orders may now cover every employee at a location
AB 1961 amends Code of Civil Procedure § 527.8, effective January 1, 2027. When harassment, unlawful violence, or a credible threat of violence is directed at a workplace, or at a location where a group of employees perform their primary job duties, rather than at a specific employee, the employer may seek a restraining order on behalf of all employees there.
The employer may seek a temporary restraining order and an order after hearing without naming an individual employee in the petition. The Judicial Council must adopt or modify the court forms by January 1, 2028.
What to do: Add the group petition to your workplace violence prevention plan as a response option, and tell counsel promptly when a threat targets a site rather than a person.
Source: AB 1961 (Stats. 2026, ch. 910); Cal. Code Civ. Proc. § 527.8(a)(2). Read AB 1961 on the California Legislature site
If you use arbitration agreements: California now mirrors the federal exclusions
AB 2155 amends Code of Civil Procedure § 1281, effective January 1, 2027. A written arbitration agreement is not enforceable under the California Arbitration Act to the extent it is not enforceable under the Federal Arbitration Act.
The Legislature’s stated purpose is to bring the federal exclusions into California law. Those include transportation workers engaged in interstate commerce (9 U.S.C. § 1) and sexual harassment and sexual assault claims (9 U.S.C. §§ 401–402).
What to do: If applicants or employees sign an arbitration agreement during onboarding, have counsel confirm which workers and claims it can still reach. Keep the agreement out of the background check disclosure, which must stand alone.
Source: AB 2155 (Stats. 2026, ch. 46); Cal. Code Civ. Proc. § 1281(b). Read AB 2155 on the California Legislature site
One definition of sex discrimination across California law
AB 2563, effective January 1, 2027, adds a uniform definition to the California codes, including Government Code § 27 and a matching Labor Code § 12.3. It conforms FEHA (Government Code § 12926) and the Unruh Civil Rights Act.
Any provision that prohibits sex or gender discrimination is read as prohibiting discrimination based on assigned sex or gender category, the degree of conformity to sex or gender stereotypes, gender identity, gender expression, and gender-affirming care, pregnancy or related medical conditions and decisions about related care, sexual orientation, and variations in sex characteristics, including intersex traits.
The Legislature declared the bill declarative of existing law. The companion bill that would have added menopause (AB 1940) was vetoed.
What to do: Align the equal employment opportunity statement in your handbook, job applications, and screening policy with this list.
Source: AB 2563 (Stats. 2026, ch. 952); Cal. Gov. Code §§ 27, 12926; Cal. Lab. Code § 12.3. Read AB 2563 on the California Legislature site
Labor Commissioner claims: produce records on time, and wage liens can be renewed
SB 1316 amends Labor Code §§ 98.2 and 1174.1 and adds § 1742.05, effective January 1, 2027. An employer that does not produce requested records to the Labor Commissioner within the time allowed is barred from introducing those records as evidence, or relying on them in any other way, in the hearing or writ proceeding that contests the citation.
The time allowed is generally at least 15 days, with an automatic 15-day extension on a timely request, and at least 10 days for public works contractors.
The Labor Commissioner’s lien on an employer’s real property for an unpaid wage judgment, which lasts 10 years, may now be renewed for additional 10-year periods.
What to do: Keep payroll, time, and personnel records where they can be produced within the deadline, and calendar every Labor Commissioner request the day it arrives.
Source: SB 1316 (Stats. 2026, ch. 157); Cal. Lab. Code §§ 98.2, 1174.1, 1742.05. Read SB 1316 on the California Legislature site
San Francisco Fair Chance Ordinance amendments in force since Aug. 10, 2026: new deadlines and an out-of-state record ban
Who is covered: employers with five or more employees worldwide, for positions with at least eight hours of work per week in San Francisco.
After the applicant responds to a pre-adverse notice (seven days), you must acknowledge the response in writing within 14 days, hold the decision for a reasonable period, and issue the final decision within 30 days of the response or, if none, of the notice.
You must withdraw the proposed action when the applicant shows it rests solely on a conviction that cannot be a directly-related conviction.
You may not consider out-of-state convictions or unresolved arrests for conduct that is lawful in California involving abortion-related health care, gender-affirming care, drag performance, or miscarriage or stillbirth.
Penalties rose to $500 to $1,000, $1,000 to $2,000, and $2,000 to $4,000 per person, with liquidated damages of $500 to $1,000 per person in court.
What to do: Put the 7-day, 14-day, and 30-day clocks into your adverse-action workflow, post the updated OLSE notice, instruct reviewers to screen out the four protected out-of-state record categories, and confirm your postings carry the required fair-chance statement.
Source: S.F. Police Code art. 49, as amended (eff. Aug. 10, 2026). Read the ordinance page
Pay scale in postings now means a good-faith estimate of the expected range
Since January 1, 2026 (SB 642, Stats. 2025, ch. 468), “pay scale” under Labor Code § 432.3 means a good-faith estimate of the salary or hourly wage range the employer reasonably expects to pay for the position upon hire.
Employers with 15 or more employees must include that pay scale in postings, including postings placed by third parties, under SB 1162. Every employer must still provide it on reasonable request and may not ask about salary history.
What to do: Review every open posting and third-party listing for a realistic range, and remove any salary history question from applications and interview scripts.
Source: Cal. Lab. Code § 432.3; SB 642 (Stats. 2025, ch. 468). Read the law
CPPA automated decisionmaking technology rules now apply to hiring
The California Privacy Protection Agency’s automated decisionmaking technology regulations, 11 CCR § 7001 et seq., were approved September 23, 2025 and took effect January 1, 2026.
They add pre-use notice, opt-out, and access duties for covered businesses that use ADMT for significant decisions, including hiring. Compliance is required by January 1, 2027.
They sit alongside the Civil Rights Council’s FEHA automated-decision system regulations, in effect since October 1, 2025, which bar automated screening of criminal history before a conditional offer and require four-year record retention (2 CCR §§ 11008.1, 11009, 11013, 11017.1).
What to do: List every automated tool in your hiring workflow, confirm none screens criminal history before the offer, and prepare the pre-use notice and opt-out process before January 1, 2027.
Source: 11 CCR § 7001 et seq.; 2 CCR §§ 11008.1, 11009, 11013, 11017.1. Read the regulations
Job ads may not require a driver’s license unless driving is a job function
Since January 1, 2025 (SB 1100, Gov. Code § 12940), job ads and applications may not state that a driver’s license is required unless driving is reasonably expected to be a job function and no alternative form of transportation would be comparable in travel time or cost.
The Civil Rights Department enforces the rule under FEHA, alongside the Fair Chance Act requirement that ads and applications carry no criminal history statements.
What to do: Audit every posting template for a license requirement, and keep it only where you can document that driving is an essential duty.
Source: Cal. Gov. Code § 12940 (SB 1100). Read the law
EEOC rescinds its 2012 arrest and conviction guidance
The Commission voted on October 28, 2026 to rescind the 2012 Enforcement Guidance on arrest and conviction records, effective immediately. The rescission does not revive the 1987 and 1990 policy statements.
The EEOC says employers need not abandon lawful practices adopted under the rescinded guidance, and it will keep enforcing Title VII. Disparate-impact claims under 42 U.S.C. § 2000e-2(k) remain available to private plaintiffs and under state law.
What to do: Keep the individualized assessment and the written job-related criteria. They come from the courts (Green v. Missouri Pacific) and from state and local fair-chance laws such as the California Fair Chance Act, not from the rescinded guidance.
Source: EEOC press release, Oct. 29, 2026. Read the release
Medical marijuana moved to Schedule III; DOT testing is unchanged
DEA’s final rule of April 28, 2026 moved FDA-approved marijuana drug products and marijuana dispensed under state medical-marijuana licenses to Schedule III. All other marijuana remains Schedule I.
DOT testing is unchanged. 49 C.F.R. Part 40 still tests for marijuana, and DOT’s Office of Drug and Alcohol Policy and Compliance stated in May 2026 that state medical-marijuana use is not a legitimate medical explanation for a positive result under 49 C.F.R. § 40.137.
What to do: Keep testing CDL drivers and other safety-sensitive employees for marijuana under Part 40. For every other California role, follow Gov. Code § 12954 and test for active THC or impairment only.
Source: DEA final rule, 91 FR, Doc. 2026-08176; 49 C.F.R. § 40.137. Read DOT’s guidance
California Employment Screening Services
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Applicants e-sign FCRA and ICRAA disclosures after a conditional offer, from any phone.
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Screens HHS-OIG, SAM.gov, and state exclusion lists for health facility and patient-access roles.
Access to SSN Trace functionality is restricted at initial registration. This feature cannot be accessed at initial signup until your organization’s business use case is verified.
California Employer Compliance Checklist
- Remove conviction, arrest, and driver’s license questions from applications and job postings.
- Remove sex, marital status, religion, citizenship, and photograph questions from the application under Gov. Code § 12940(d).
- Collect the date of birth on the FCRA and ICRAA authorization after the conditional offer, never on the application.
- Make a conditional offer before you run a criminal background check.
- Use California-specific ICRAA disclosure and authorization forms with a copy checkbox.
- Confirm reports follow the seven-year limit in Civil Code § 1786.18.
- Complete a written individualized assessment and both notices, and give at least five business days to respond.
- Check Los Angeles City, LA County, and San Francisco rules, including San Francisco’s 7-, 14-, and 30-day clocks, for local roles.
- Limit credit checks to positions listed in Labor Code § 1024.5.
- Update drug testing to exclude non-psychoactive cannabis metabolites, and review the employer alerts for each effective date.
California Employment Screening Law FAQs
Does California have a state version of the Fair Credit Reporting Act?
Yes, two. The Investigative Consumer Reporting Agencies Act, Cal. Civ. Code § 1786 et seq., covers most background checks.
The Consumer Credit Reporting Agencies Act, Cal. Civ. Code § 1785 et seq., covers credit reports. Applicants enforce both laws through civil lawsuits.
How far back can a California criminal background check go?
Seven years. Under Cal. Civ. Code § 1786.18, screening companies cannot report older arrests or convictions. The clock runs from disposition, release, or parole.
There is no $75,000 salary exception. Only life insurance underwriting of $250,000 or more and regulator-required checks are exempt. Applicants enforce the limit through civil lawsuits.
Is California a ban-the-box state?
Yes. The Fair Chance Act, Cal. Gov. Code § 12952, covers employers with five or more employees. It bars conviction questions before a conditional offer.
It also requires a written individualized assessment and at least five business days to respond. The California Civil Rights Department enforces the law and its regulations at 2 CCR § 11017.1.
Which criminal records can California employers not consider?
Cal. Lab. Code § 432.7 bars asking about arrests without conviction, diversion programs, and juvenile court matters. It also protects dismissed, sealed, and expunged convictions, and § 432.8 protects marijuana convictions older than two years.
The Department of Justice also grants automatic relief under Penal Code §§ 851.93 and 1203.425. Applicants may sue over violations of section 432.7.
Can California employers run credit checks on applicants?
Only for listed positions. Cal. Lab. Code § 1024.5 allows credit reports for managers, law enforcement, and roles with major financial access.
That includes jobs with regular access to $10,000 or more in cash. The California Labor Commissioner enforces the law.
Do local fair chance ordinances apply in California?
Yes. Los Angeles City covers employers with ten or more employees, and the Bureau of Contract Administration enforces it. Los Angeles County covers unincorporated areas at five or more employees through its Department of Consumer and Business Affairs.
San Francisco’s Office of Labor Standards Enforcement enforces a seven-year limit under Police Code art. 49. Since August 10, 2026, San Francisco also requires a written acknowledgment within 14 days and a final decision within 30 days of the applicant’s response.
Can California employers drug test for cannabis?
Only with limits. Cal. Gov. Code § 12954 bars penalizing off-duty cannabis use or tests that detect only non-psychoactive metabolites.
Employers also cannot ask about prior cannabis use. The California Civil Rights Department enforces the law, and building trades and federally regulated roles are exempt.
What may a California employer ask on a job application?
Cal. Gov. Code § 12940(d) bars employers with five or more employees from any non-job-related question about race, religion, national origin, disability, medical condition, marital status, sex, gender identity, age, sexual orientation, or military status. The regulations at 2 CCR § 11016 also bar requiring a photograph.
The Civil Rights Department enforces the rule, and Title VII, the ADEA, the ADA, and the INA apply at the same time. Collect the date of birth on the FCRA and ICRAA authorization after the conditional offer, not on the application.
What changed for California employers in 2026?
In October 2026, the Court of Appeal held in McInerney v. Regents that the Fair Chance Act, Cal. Gov. Code § 12952, sets procedural requirements only, so documenting the assessment and notices is what protects you. San Francisco’s amended Fair Chance Ordinance also took effect August 10, 2026.
Fifteen laws signed in 2026 follow, most on January 1, 2027. They include the stay-or-pay ban in Lab. Code § 926, the surveillance limits in Lab. Code §§ 1560 to 1565 and 1580 to 1583, broader immigration-retaliation penalties under Lab. Code § 1019, and the No Robo Bosses Act, Lab. Code §§ 1520 to 1526.7, on July 1, 2027. The California Labor Commissioner enforces most of them.
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This page provides general information about California background check laws, not legal advice. Laws change often, so consult an employment attorney before you finalize a screening policy. Revised October 29, 2026.