California background check laws for employers

At a glance

The California rules on each topic, in one line. Federal law applies to every topic.

When you may ask about criminal history

Who it covers: Private and public employers with five or more employees.

In force since: January 1, 2019

The California Fair Chance Act (Gov. Code 12952) covers employers with five or more employees. They may not ask about conviction history on an application or inquire into or consider it before a conditional offer. At any stage they may not consider or distribute arrests not followed by conviction, diversion referrals or participation, or convictions that were sealed, dismissed, expunged, statutorily eradicated, pardoned, or covered by a certificate of rehabilitation. The Civil Rights Council’s regulation (2 CCR 11017.1, amended effective October 1, 2023 and again for subsection (a)(1) effective October 1, 2025) adds detail. Before a conditional offer, employers may not seek criminal history through an application, background check, internet search, or an automated-decision system. Job ads, postings, and applications may not say that people with records will not be considered (for example, ‘No Felons’ or ‘Must Have Clean Record’). If an applicant volunteers criminal history before an offer, the employer still may not consider it until after the offer (unless an exemption applies), and may never consider the barred categories. An employer that asked too early may not later use the applicant’s failure to disclose. After a conditional offer, an employer that intends to deny the job because of conviction history must make an individualized assessment of whether the history has a direct and adverse relationship with the specific duties of the job, considering the nature and gravity of the offense, the time passed since the offense and completion of sentence, and the nature of the job. Evidence of rehabilitation or mitigation that the applicant volunteers must be considered; the employer may not require it, require a specific document type, require disclosure of survivor status, or require medical records. A written preliminary notice must identify the disqualifying conviction, include a copy of any conviction history report relied on, and explain the right to respond. The applicant gets at least five business days from receipt to respond (mailed notice is deemed received five calendar days after mailing within California; email two business days after sending), plus five more business days if they say in writing they are disputing the report’s accuracy and gathering evidence. The employer must consider the response. A final written notice must state the decision, any internal reconsideration procedure, and the right to file a complaint with the Civil Rights Department. Under the regulation, ‘applicant’ includes a person working after a conditional offer whose history is reviewed later, an employee seeking a different position, and an employee reviewed because of a change in ownership, management, or policy; ’employer’ includes any entity that evaluates conviction history on the employer’s behalf or acts as its agent, staffing agencies, and client employers.

Exceptions

• Positions for which a state or local agency is required by law to conduct a conviction history background check.
• Positions with a criminal justice agency (Penal Code 13101).
• Farm Labor Contractor positions (Labor Code 1685).
• Positions where state, federal, or local law (including FINRA/SRO rules under the Securities Exchange Act) requires a criminal background check or restricts employment based on criminal history.
• For the state/local-agency and ‘required by law’ exemptions, the employer itself (or its agent) must be the one required by law to run the check; a licensing board’s duty does not exempt the employer (2 CCR 11017.1(a)(5)).

Cal. Gov. Code 12952(a)(2) · Cal. Gov. Code 12952(c)(1)(A) · Cal. Gov. Code 12952(c)(3) · 2 Cal. Code Regs. 11017.1(a)(1) · 2 Cal. Code Regs. 11017.1(a)(2) · 2 Cal. Code Regs. 11017.1(a)(6) · 2 Cal. Code Regs. 11017.1(j)(2)

What a background check report may include

Who it covers: Investigative consumer reporting agencies and consumer credit reporting agencies furnishing reports on California consumers; Labor Code 432.7 applies to every employer, public or private.

In force since: January 1, 2025

California has two state FCRA analogues. The Investigative Consumer Reporting Agencies Act (ICRAA) governs background reports. The Consumer Credit Reporting Agencies Act (CCRAA) governs credit reports. Both bar reporting of records of arrest, indictment, information, misdemeanor complaint, or conviction older than seven years, counted from the date of disposition, release, or parole. No salary threshold lifts the seven-year cap. An arrest that did not end in conviction may not be reported once that is known; pending charges may still be reported until judgment. A conviction with a full pardon may not be reported. Civil suits, satisfied and unsatisfied judgments, paid tax liens, and collection accounts: seven years. Bankruptcies: ten years. Medical debt may not be reported at all. Public-record items (arrests, convictions, civil actions, tax liens, judgments) must be verified within the 30 days before the report is furnished. Separately, Labor Code 432.7 bars every employer from asking about, seeking, or using an arrest or detention that did not result in conviction, a diversion referral or program, a conviction judicially dismissed or sealed (including Penal Code 1203.4, 1203.4a, 1203.425, 1203.45, 1210.1), and any juvenile court matter. Labor Code 432.8 extends the same bar to most non-felony marijuana possession convictions once two years have passed.

Exceptions

• ICRAA seven-year cap does not apply when a governmental regulatory agency explicitly requires the employer to check for the barred records (Civ. Code 1786.18(b)(2)).
• ICRAA seven-year cap does not apply to life insurance underwriting of $250,000 or more (Civ. Code 1786.18(b)(1)).
• Labor Code 432.7: an employer may ask about an arrest for which the applicant is out on bail or on own recognizance pending trial.
• Labor Code 432.7: peace officer and criminal justice agency positions are not covered; health facilities may ask about specified sex-offense arrests (positions with patient access) and specified drug arrests (positions with drug access).

Cal. Civ. Code 1786.18(a)(7) · Cal. Civ. Code 1786.18(c) · Cal. Civ. Code 1785.13(a)(6) · Cal. Labor Code 432.7(a)(1) · Cal. Labor Code 432.7(a)(2) · Cal. Labor Code 432.8

Sealed and expunged records

Who it covers: All employers; the relief provisions bind the DOJ and the courts.

In force since: October 1, 2024

California grants automatic record relief without a petition. Penal Code 1203.425: on a monthly basis the Department of Justice reviews state criminal history and grants relief, including dismissal, for eligible convictions. Eligible: convictions on or after January 1, 1973 where probation was completed without revocation; infractions and misdemeanors once the sentence is complete and one year has passed; and other felonies once all incarceration and supervision are complete and four years have passed with no new felony, excluding serious felonies, violent felonies, and sex-registration offenses. The person must have no active supervision, no pending charges, and no sex-offender registration. The DOJ record is annotated ‘relief granted’ and courts may not disclose the conviction except to the person or a criminal justice agency. Penal Code 851.93: the DOJ also grants automatic arrest record relief (dismissed misdemeanors; misdemeanor arrests with no charges after one year; felony arrests with no charges after three years, or six years for offenses punishable by eight years or more; completed diversion). An arrest granted relief is deemed not to have occurred and the person may answer questions accordingly. For employers: Labor Code 432.7 bars asking about or using a conviction dismissed or sealed under 1203.425, and Gov. Code 12952(a)(3)(C) bars considering sealed, dismissed, or expunged convictions in a background check.

Exceptions

• Relief does not excuse disclosure on an application for employment as a peace officer, for public office, for IHSS provider enrollment, or for contracting with the State Lottery (1203.425(a)(4)(A)-(B)).
• Relief does not affect a licensing agency’s authority to receive and act on criminal history under Health and Safety Code 1522, 1568.09, 1569.17, or 1596.871 (care facilities) or the listed Education Code provisions (1203.425(a)(4)(H), (K)).
• Criminal justice agencies keep full access; relief does not restore firearm rights or lift public-office bars.

Cal. Penal Code 1203.425(a)(1)(A) · Cal. Penal Code 1203.425(a)(2)(A) · Cal. Penal Code 851.93(b)(3) · Cal. Labor Code 432.7(a)(1)

Credit checks for employment

Who it covers: Private and public employers and prospective employers in California.

In force since: January 1, 2012

Labor Code 1024.5 bars an employer or prospective employer from using a consumer credit report for employment purposes unless the position is one of eight listed types: a managerial position (executive exemption under Wage Order 4); a position in the state Department of Justice; a sworn peace officer or other law enforcement position; a position for which the law requires the report’s information to be disclosed or obtained; a position with regular access to bank or credit card account information, Social Security number, and date of birth of any one person (other than routine retail credit card applications); a position as a named signatory on the employer’s bank or credit card account, or authorized to transfer money or enter financial contracts for the employer; a position with access to trade secrets or confidential proprietary information; or a position with regular access to $10,000 or more in cash during the workday. Before requesting a credit report, Civ. Code 1785.20.5 requires written notice that identifies the specific 1024.5 basis, names the source of the report, and offers a check box for a free copy delivered at the same time as the employer’s copy. If employment is denied in whole or part because of the report, the employer must say so and give the agency’s name and address.

Exceptions

• Financial institutions subject to the Gramm-Leach-Bliley Act (15 U.S.C. 6801-6809) and overseen by a state or federal regulator (1024.5(b)).
• Reports that only verify income or employment and contain no credit history, score, or record are not ‘consumer credit reports’ (1024.5(c)(1)).

Cal. Labor Code 1024.5(a) · Cal. Civ. Code 1785.20.5(a)

Salary history questions

Who it covers: All employers, including state and local government and the Legislature.

In force since: January 1, 2026

Labor Code 432.3 bars every employer from seeking an applicant’s salary history, including compensation and benefits, orally or in writing, directly or through an agent. An employer may not rely on salary history in deciding whether to hire or what to pay. On reasonable request an employer must give an applicant the pay scale for the position; employers with 15 or more employees must put the pay scale in every job posting, including postings placed through third parties. Employers must keep job title and wage rate history for each employee for the employment plus three years.

Exceptions

• Salary history that is disclosable to the public under federal or state law (for example, the Public Records Act) (432.3(f)).
• An applicant may volunteer salary history without prompting, and the employer may then consider it in setting salary (432.3(h), (i)).
• An employer may ask about the applicant’s salary expectation for the position (432.3(j)).

Cal. Labor Code 432.3(b) · Cal. Labor Code 432.3(c)(3)

Cannabis use and testing

Who it covers: All employers covered by FEHA.

In force since: January 1, 2024

Gov. Code 12954 (FEHA) makes it unlawful to discriminate in hiring, termination, or any term of employment because of a person’s cannabis use off the job and away from the workplace, or because an employer-required drug test found nonpsychoactive cannabis metabolites in hair, blood, urine, or other fluids. Employers may still act on scientifically valid pre-employment screening that does not test for nonpsychoactive metabolites. Employers may not ask applicants about prior cannabis use. Cannabis use found in criminal history may be considered only where Gov. Code 12952 or other law allows. The section does not permit on-the-job use, possession, or impairment, and does not limit drug- and alcohol-free workplace policies.

Exceptions

• Employees in the building and construction trades (12954(a)(2)).
• Positions that require a federal government background investigation or security clearance under 32 CFR Part 117 or equivalent (12954(f)).
• State or federal laws that require testing of applicants or employees as a condition of employment, federal funding, federal licensing, or a federal contract (12954(e)).

Cal. Gov. Code 12954(a)(1)(A) · Cal. Gov. Code 12954(a)(1)(B) · Cal. Gov. Code 12954(b)

The state consumer reporting law

Who it covers: Any person procuring an investigative consumer report for employment purposes in California, and investigative consumer reporting agencies doing business in the state.

In force since: January 1, 2011

California has two analogues. The Investigative Consumer Reporting Agencies Act (ICRAA, Civ. Code 1786-1786.60) covers reports on character, general reputation, personal characteristics, and mode of living, which in practice includes criminal, employment, and education background checks. Before procuring an employment report, the employer must give a clear and conspicuous written disclosure in a document consisting solely of the disclosure, stating that a report may be obtained, its permissible purpose, that it may include character and mode-of-living information, the agency’s name, address, and telephone number, the nature and scope of the investigation with a summary of Civ. Code 1786.22, and the agency’s website (or phone) for its privacy practices, including whether data goes outside the United States. The consumer must authorize the report in writing. The employer must offer a check box to request a free copy, send it within three business days of receiving the report if requested, certify compliance to the agency, and follow Civ. Code 1786.40 before adverse action. Agencies must follow reasonable procedures for maximum possible accuracy, keep reports two years, verify public-record items within 30 days before furnishing, post a privacy statement that says whether data goes overseas, and have a written user agreement. The Consumer Credit Reporting Agencies Act (CCRAA, Civ. Code 1785.1-1785.36) covers credit reports; see credit_checks for the 1785.20.5 employment notice. No agency registration requirement appears in the ICRAA sections read. The employer disclosure and authorization rules do not apply to reports procured because the employer suspects wrongdoing or misconduct by the subject.

Exceptions

• Investigations based on an employer’s suspicion of wrongdoing or misconduct by the subject are exempt from the disclosure, authorization, and free-copy rules (1786.16(c)).

Cal. Civ. Code 1786.16(a)(2)(B) · Cal. Civ. Code 1786.16(b)(1) · Cal. Civ. Code 1786.20(b) · Cal. Civ. Code 1786.20(d)(1)(A)

Where federal law alone applies

We found no California rule for private employers on these topics. The FCRA and other federal laws still apply.

• Drug testing procedures

Local rules

Some places in California add their own rules. A local rule applies on top of the state rule.

• Los Angeles (city). Fair Chance Initiative for Hiring Ordinance (FCIHO). Covers employers located or doing business in the City with ten or more employees (counting owners, managers, and supervisors); an employee is anyone who works at least two hours a week on average in the City and is entitled to the state minimum wage. No criminal history question on applications and no inquiry until after a conditional offer. Before any adverse action: a written assessment linking specific aspects of the history to the job’s risks, the Fair Chance Process (written notice, copy of the assessment and supporting documents), at least five business days before acting or filling the job, a written reassessment if the applicant responds, and a copy of the reassessment with the final decision. All job ads must state that the employer will consider qualified applicants with criminal histories consistent with the ordinance, and a notice must be posted at each workplace. Enforced by the Bureau of Contract Administration. Effective January 22, 2017. Los Angeles Municipal Code Ch. XVIII, Art. 9, Secs. 189.00-189.15 (Ord. No. 184652; Council File 14-0746)
• Los Angeles County (unincorporated areas). Fair Chance Ordinance for Employers, operative 12:01 a.m. September 3, 2024 (LACC 8.300.130). Covers employers located or doing business in unincorporated Los Angeles County with five or more employees regardless of location (LACC 8.300.040), for work in the unincorporated area. Adds to the state Act: a required workplace notice, a Notice of Intent and written individualized assessment before withdrawing an offer, a second assessment after the response, and a Final Notice of Adverse Action; also reaches current employees. Enforced by the Department of Consumer and Business Affairs. Los Angeles County Code Title 8, Div. 6, Ch. 8.300 (Ord. No. 2024-0012)
• San Francisco (city and county). Fair Chance Ordinance, Police Code Article 49. Employers with five or more employees located or doing business in the city; positions of eight or more hours a week in San Francisco. No inquiry about arrests or convictions until after a conditional offer. May never consider: arrests not leading to conviction (unresolved arrests excepted), diversion, dismissed or expunged convictions, juvenile matters, infractions, convictions more than seven years old (unless the job supervises minors or dependent adults), decriminalized conduct such as non-commercial cannabis, and out-of-state convictions for conduct lawful in California. Job ads must state that qualified applicants with records will be considered. Official FCO notice must be posted (English, Spanish, Chinese, plus any language of 5% of staff) and given to applicants before a background check. Seven days to respond to a proposed adverse action; employer confirms receipt within 14 days and issues any final notice within 30 days. Annual compliance report to OLSE. Passed February 14, 2014; amended 2018 (operative October 1, 2018) and July 10, 2026 (effective August 10, 2026). San Francisco Police Code Article 49 (as amended by Ord. No. 128-26, effective August 10, 2026)
• San Diego County (unincorporated areas). San Diego County Fair Chance Ordinance. Covers employers located or doing business in the unincorporated area with five or more employees, including entities that evaluate criminal history for an employer, for positions with at least two hours of work a week on average in the unincorporated area (Sec. 21.2702). Layers local enforcement on the state Fair Chance Act: the Office of Labor Standards and Enforcement takes complaints, investigates, and issues penalties, part of which go to the affected candidate. Ord. No. 10914 (N.S.), adopted September 10, 2024, effective October 10, 2024. San Diego County Code of Regulatory Ordinances, Title 2, Div. 1, Ch. 27, Secs. 21.2701-21.2708
• Richmond (city). Ban-the-box for City contractors, subcontractors, lessees and leaseholders, and recipients of City financial aid that employ the equivalent of ten or more full-time employees; it does not cover private employers generally. Covered employers must remove conviction questions from applications and may not inquire into conviction history until the stage set by the ordinance. Adopted July 30, 2013 (Ord. No. 14-13 N.S.). Richmond Municipal Code Ch. 2.65, Secs. 2.65.010-2.65.080
• San Francisco (salary history). Consideration of Salary History Ordinance. Bars employers, including City contractors, from considering an applicant’s current or past salary in deciding whether to hire or what to offer, from asking applicants about it, and from disclosing a current or former employee’s salary history without authorization unless it is public. A poster is required at each workplace. Passed by the Board of Supervisors July 11, 2017; the operative date was not read. San Francisco Labor and Employment Code Article 141

Coming changes

Laws already passed that take effect later.

• From October 1, 2029. SB 1342 (Durazo), criminal records relief. From October 1, 2029: automatic arrest relief extends to felony arrests where all charges were dismissed, one year has passed since the last dismissal, and nothing was refiled or is pending (Penal Code 851.93); for automatic conviction relief, DOJ must treat a record with no new activity for three years as having no pending charge, and a sentence it cannot confirm as complete as finished seven years after conviction (Penal Code 1203.425). Stats. 2026, ch. 702 (SB 1342), approved September 27, 2026; amends, repeals, and adds Penal Code 851.93 and 1203.425

Every state’s changes, in date order: What changed.

Adverse action notices

Before you reject or act against someone because of a background check report, the FCRA requires a pre-adverse action notice, a wait, and then a final notice. The adverse action letter generator writes both notices and adds the California requirements where they apply.

California or a place in it sets its own waiting period. The waiting period calculator counts it.

Paperwork at hire

Besides the federal Form I-9 and W-4, California sets these for each new hire.

• State withholding. Collect a DE 4 from each new hire for California withholding; the federal W-4 covers federal tax only, and without a DE 4 you withhold as Single with zero allowances. Form DE 4
• New hire report. Report each new hire to California within 20 days; some independent contractors must be reported too. State new hire reporting
• Notices at hire. Notice to Employee (Wage Theft Prevention Act notice); Disability Insurance Provisions brochure; Paid Family Leave brochure; Workers’ compensation Time of Hire Notice (Written Notice to New Employees); Sexual harassment information sheet; Workplace Know Your Rights notice; Survivors of violence leave and accommodations notice; Lactation accommodation policy.

Build the new hire checklist for California, with city rules, special cases and a due date for each item.

Sources

• Cal. Gov. Code 12952(a)(2)
• 2 Cal. Code Regs. 11017.1(a)(1)
• Cal. Civ. Code 1786.18(a)(7)
• Cal. Civ. Code 1785.13(a)(6)
• Cal. Labor Code 432.7(a)(1)
• Cal. Labor Code 432.8
• Cal. Penal Code 1203.425(a)(1)(A)
• Cal. Penal Code 851.93(b)(3)
• Cal. Labor Code 1024.5(a)
• Cal. Civ. Code 1785.20.5(a)
• Cal. Labor Code 432.3(b)
• Cal. Gov. Code 12954(a)(1)(A)
• Cal. Civ. Code 1786.16(a)(2)(B)
• Cal. Civ. Code 1786.20(b)
• Los Angeles Municipal Code Ch. XVIII, Art. 9, Secs. 189.00-189.15 (Ord. No. 184652; Council File 14-0746)
• Los Angeles County Code Title 8, Div. 6, Ch. 8.300 (Ord. No. 2024-0012)
• San Francisco Police Code Article 49 (as amended by Ord. No. 128-26, effective August 10, 2026)
• San Diego County Code of Regulatory Ordinances, Title 2, Div. 1, Ch. 27, Secs. 21.2701-21.2708
• Richmond Municipal Code Ch. 2.65, Secs. 2.65.010-2.65.080
• San Francisco Labor and Employment Code Article 141

Last reviewed October 20, 2026 · General information, not legal advice.

After the hire

Once a background check clears, payroll and onboarding come next. Rippling (paid link) runs payroll, benefits and onboarding from one employee record.