California Law on Employers Obtaining Background Checks on Prospective Employees

Under California law, employers may obtain background checks on prospective employees, but they must comply with certain legal requirements to do so. The California Consumer Credit Reporting Agencies Act (CCRAA) and the Investigative Consumer Reporting Agencies Act (ICRAA) are the two primary laws that regulate background checks in California.

The CCRAA applies to employers who use consumer credit reports, such as credit history or credit score, in making employment decisions. Employers must provide written notice and obtain written authorization from the applicant before obtaining a consumer credit report. If an employer decides not to hire an applicant based on the credit report, they must provide a pre-adverse action notice and a copy of the credit report to the applicant, and allow them an opportunity to dispute any inaccuracies in the report.

The ICRAA applies to employers who use investigative consumer reports, such as a background check that includes information about an applicant’s character, general reputation, personal characteristics, or mode of living. Employers must provide written notice and obtain written authorization from the applicant before obtaining an investigative consumer report. If an employer decides not to hire an applicant based on the investigative consumer report, they must provide a pre-adverse action notice and a copy of the report to the applicant, and allow them an opportunity to dispute any inaccuracies in the report.

In addition, California law prohibits employers from using certain types of information in employment decisions, such as arrests that did not lead to a conviction, most marijuana-related convictions that are more than two years old, and some types of juvenile records. It’s important for employers to ensure compliance with all legal requirements and consult with an employment law attorney if they have any questions or concerns about obtaining background checks on prospective employees.