Federal Law (FCRA)
The Fair Credit Reporting Act (FCRA) establishes the federal minimum requirements for employment background checks, including disclosure and authorization requirements, consumer rights, and the adverse action process. Many states impose additional requirements that employers must also follow.
Read FCRA Overview →California: Key Requirements
Scroll to view all requirements below.
Ban the Box / Fair Chance Hiring
Most private employers cannot ask about criminal history on initial applications. Employers may inquire after a conditional offer of employment.
Criminal Record Lookback Period
Convictions and non-conviction records generally cannot be reported if more than 7 years old, measured from the date of disposition, release, or parole.
Reporting Restrictions
Employers generally may not report or rely on arrests that did not result in conviction, diversion programs, or deferred entry of judgment. Exception: Employers may consider open, unresolved cases if the individual is out on bail or released on their own recognizance while awaiting trial.
Expunged / Sealed Records
Employers cannot consider convictions that have been expunged, sealed, dismissed, or that are subject to certain relief.
Salary History Ban
Employers cannot ask about, rely on, or disclose a candidate's salary history. Applies to all private employers.
Credit Report Restrictions
Credit reports generally cannot be used for employment decisions unless the position falls into a narrow set of exceptions, including certain managerial roles, law enforcement or DOJ positions, roles with signatory authority on financial accounts, regular access to $10,000 or more in cash, or access to trade secrets or sensitive personal/financial information.
Bankruptcies
Bankruptcy records generally cannot be reported if more than 10 years old, measured from the date of the order for relief or adjudication.
Civil Judgments & Lawsuits
Civil suits, satisfied judgments, and unsatisfied judgments generally cannot be reported if more than 7 years old, measured from the date of filing or entry.
Tax Liens & Collections
Paid tax liens and accounts placed for collection generally cannot be reported if more than 7 years old, measured from the date of payment or the date placed for collection.
Marijuana / Drug Testing Protections
Employers cannot discriminate against applicants or employees for off-duty, off-site cannabis use, or take adverse action based on a drug test that only detects nonpsychoactive cannabis metabolites.
Pre-Adverse Action Notice & Waiting Period
"Reasonable time" must be at least 5 business days. Some local ordinances require longer waiting periods.
Adverse Action Notice Requirements
Must include additional California-specific language if using credit reports. Must provide a copy of the report if requested within 60 days.
Authorization Requirements
Authorization must be in a document that consists solely of the disclosure and authorization. Cannot be combined with other terms or conditions.
Individualized Assessment
Before taking adverse action, employers must conduct an individualized assessment considering the nature of the offense, time elapsed, and relevance to the job. Required under state law, not just local ordinances.
Certificate of Rehabilitation
A Certificate of Rehabilitation must be considered as evidence of rehabilitation in the individualized assessment.
Unless otherwise noted, the information on this page applies to private sector employment. Government employers and certain regulated industries may be subject to additional or different requirements.
Local Ordinances That May Apply
Click a jurisdiction below to view full details.
Los Angeles, CA Applies to 10+ Employees Fair Chance Initiative for Hiring Ordinance
Applies to employers with 10 or more employees for positions involving at least 2 hours of work per week in the city. Employers may not ask about criminal history until after a conditional offer, must include fair-chance language in job postings, and must complete a written assessment linking any conviction to the job before withdrawing an offer. The applicant gets a copy of the assessment and at least 5 business days to respond before a final decision.
Los Angeles County, CA Applies to 5+ Employees Fair Chance Ordinance for Employers
Applies to employers with 5 or more employees where at least one works 2 or more hours per week in the unincorporated areas of the county, and reaches independent contractors. Job postings must state that applicants with records will be considered and list any laws restricting the position. Employers may not ask about criminal history until after the background report follows a conditional offer, and, except for certain caregiver roles, may not consider convictions more than 7 years old. A multi-step written assessment, preliminary notice with 5 business days to respond, second assessment, and final notice are required. Penalties reach $20,000 per violation, with a private right of action.
San Francisco, CA Applies to 5+ Employees Fair Chance Ordinance
Applies to employers with 5 or more employees worldwide, for positions involving at least 8 hours of work per week in the city. Employers may not ask about criminal history until after a conditional offer, and may never consider an arrest not leading to conviction (other than unresolved arrests), diversion, a dismissed or sealed conviction, an infraction, or a conviction more than 7 years old. Job ads must state that applicants with records will be considered. An individualized assessment and notice are required before adverse action.
San Diego County (Uninc Areas) Applies to 5+ Employees Fair Chance Ordinance
Applies only to unincorporated areas of the county, not the incorporated City of San Diego. Covered employers (5+ employees) must complete a written individualized assessment and follow a specific pre-adverse action notice process before denying employment based on criminal history.
This list reflects known local ordinances at the time of publication and may not be exhaustive. Employers should confirm requirements for every city or county where they hire.
What This Means for Employers
California is one of the most heavily regulated states for hiring. To stay compliant:
Remove criminal history and salary history questions from applications and interviews. Post a pay range on every listing if you have 15+ employees. Run credit checks only for the permitted job categories, and give written notice of the reason when you do. Wait until after a conditional offer before asking about or checking criminal history. Do not consider arrests without conviction, diversion or deferred judgment, or dismissed, sealed, or expunged records. Do not ask about prior cannabis use, and do not screen out applicants for off-duty cannabis use or non-psychoactive metabolites. Conduct a written individualized assessment before rescinding an offer of employment because of a conviction, Send a preliminary notice with a copy of the report, and allow at least 5 business days to respond. Conduct a second written assessment if the applicant responds with new information. Send a final notice stating the decision, any reconsideration procedure, and the right to file with the Civil Rights Department. Review local ordianances when hiring in Los Angeles, Los Angeles County, San Diego County (unincorporated), or San Francisco.Non-compliance can result in civil penalties, damages, and legal liability under both state and local law.
Download the California Quick Reference Guide
Get a printable, one-page comparison of FCRA vs. California law.