California background check laws for employers

Three layers on top of the FCRA

Every US employer that uses a background check company follows the federal Fair Credit Reporting Act: a clear written disclosure, the candidate's written authorization, and notices before and after an adverse decision. California adds three layers of its own: the Fair Chance Act, the Investigative Consumer Reporting Agencies Act (ICRAA), and Labor Code limits on which records an employer may use. Los Angeles and San Francisco add a fourth.

The Fair Chance Act

California's Fair Chance Act applies to most employers with five or more employees. An employer can't ask about conviction history on the application or in interviews, or run a criminal check, until it has made a conditional job offer. Job ads and applications can't say that people with criminal records won't be considered.

If the check returns a conviction the employer wants to act on, it must assess it individually against three factors: the nature and gravity of the offense, the time since the offense or the end of the sentence, and the nature of the job. Regulations in force since October 1, 2023 spell out what each factor includes and require employers to consider evidence of rehabilitation or mitigating circumstances that the candidate provides.

Before withdrawing the offer, the employer sends a preliminary notice that names the conviction, includes a copy of the report and explains how to respond. The candidate has at least five business days to reply, and five more if they dispute the record and are getting evidence. If the employer still decides not to hire, a final written notice explains the decision and the candidate's right to file a complaint with the California Civil Rights Department.

Records California employers can't use

The Labor Code keeps several kinds of records out of hiring decisions, whatever the background check returns:

• Arrests and detentions that did not lead to a conviction.
• Diversion programs, before or after trial.
• Convictions that were sealed, dismissed or expunged.
• Juvenile court records.
• Some minor marijuana convictions more than two years old.

Since January 1, 2024, employers also can't reject a candidate for off-duty cannabis use, or for a drug test that finds only non-psychoactive cannabis metabolites. Tests for psychoactive THC remain allowed, but a THC result alone does not show impairment at work. The rule does not cover the building and construction trades, roles that need a federal background investigation or security clearance, or roles where federal or state law requires drug testing.

The seven-year reporting limit

Under ICRAA, a background check company generally can't report a conviction that is more than seven years old, counted from the date of disposition, release or parole. The federal FCRA has no time limit for convictions, so California reports follow the stricter state rule.

ICRAA also has its own disclosure. Before the check, the employer tells the candidate which company will run it and what it covers, and gives them a box to check if they want a free copy of the report.

Los Angeles and San Francisco

City of Los Angeles

The city's Fair Chance Initiative covers employers with ten or more employees, counting anyone who works at least two hours a week in the city. Job ads must state that qualified applicants with criminal histories will be considered. Before withdrawing an offer, the employer prepares a written assessment, shares it with the candidate and holds the job open for at least five business days. Records of applications and assessments are kept for three years.

Unincorporated Los Angeles County

The county ordinance, in force since September 2024, covers employers with five or more employees working at least two hours a week in unincorporated areas. Job ads must say that applicants with arrest or conviction records will be considered under the county ordinance and the California Fair Chance Act, and can't use phrases such as "no felons" or "must have clean background." The employer explains in writing why a check is needed before running it, generally can't consider convictions older than seven years, and completes two written assessments: one before the preliminary notice and one after the candidate responds. A candidate who asks in writing for time to gather evidence gets at least ten more business days.

San Francisco

The Fair Chance Ordinance covers employers with five or more employees, for any job with at least eight hours a week in the city. Employers can't consider infractions, decriminalized conduct or convictions older than seven years, with exceptions for specified roles that serve or supervise minors, dependent adults or adults aged 65 and older, and for some driving offenses where driving is part of the job. The candidate has seven days to respond. Amendments in force since August 10, 2026 add deadlines: the employer acknowledges a response within 14 days, and sends any final notice within 30 days of the response, or of the preliminary notice if there is no response.

Driving records and driver jobs

The California DMV charges $2 for a driving record, passed through at cost. Since January 1, 2025, employers can't list a driver's license as a requirement in a job ad or application unless driving is a core part of the job and other ways of getting around would not match its travel time or cost.

What a California check costs

PROFID's packages are $27.99, $49.99 and $74.99 per candidate on the review date; current prices are on the pricing page. On top of the package come the passthrough fees above: $2 for a California driving record, and a court fee in the counties that charge one. See what drives the cost of a background check and the full passthrough fee table.

General information as of November 6, 2026, not legal advice. Coverage depends on the work location, employer size, role and records involved, and laws and fees change. Check the rules for each place where your employees work before relying on them. Fees are from PROFID's fee table, version April 22, 2026.