California’s Fair Chance Act: New Regulatory Changes Impact Employer Background Checks

The California Civil Rights Council has greenlighted modifications to the regulations that govern the state’s Fair Chance Act. These changes are due to take effect from October 1st, 2023. With this move, employers in California need to be made aware of the upcoming changes to better comply with the new policies and procedures, particularly when communicating a disqualification to a job applicant.

This regulatory adjustment has key implications for the rights of job applicants in the context of employee background checks. Specifically, it mandates certain requirements for employers in the event of disqualifying an applicant based on their background checks. Under the new guidelines, companies are required to include detailed information in their disqualification notices.

Firstly, the notice must provide a clear explanation concerning the conviction or convictions that are the cause for the candidate’s disqualification. Secondly, it must include a copy of the entire conviction history report. And thirdly, it should present details regarding the applicant’s potential right to respond. This may involve the employer providing advice about submitting evidence connected to the accuracy of the conviction record or evidence of rehabilitation, if appropriate.

This gestures toward a key element of the Fair Chance Act—ensuring job candidates have a chance to respond to information found in a background check that may negatively impact their application process. This response could include presenting evidence of rehabilitation or a positive employment history.

These changes emphasize the need for employers to ensure company policies align with this new regulatory landscape. In particular, those responsible for hiring decisions should be well versed in these changes to guarantee compliance and to preserve the rights of job applicants.

Find more details at Jackson Lewis P.C.’s article on JD Supra.