California background check laws restrict when an employer can ask about your criminal history, what the report can contain, and how the employer must handle a decision to reject you based on what it finds. Two state statutes do most of the work: the Fair Chance Act in Government Code section 12952, and the Investigative Consumer Reporting Agencies Act (ICRAA) in Civil Code sections 1786.10 through 1786.40. The federal Fair Credit Reporting Act (FCRA) applies on top whenever a third-party agency runs the check.
When an Employer Can Run a Background Check
Under the Fair Chance Act, an employer with five or more employees cannot ask about your criminal history or order a background check until after extending a conditional job offer.1California Legislative Information. California Government Code 12952 No conviction questions on the application, none during the interview, and no record pull before the offer. The conditional offer is a real commitment to hire, contingent only on the results of the check or other specified pre-employment conditions.
A few jobs are exempt. Government Code section 12952(d) carves out positions where another law requires a criminal background check, including law enforcement roles, jobs at criminal justice agencies, and positions at state-licensed facilities where a background check is a licensing condition. For those jobs, the employer can ask earlier.
Timing violations are unlawful employment practices under the Fair Employment and Housing Act, and the Civil Rights Department handles complaints.2Civil Rights Department. Fair Chance Act: Criminal History and Employment
What a Background Check Cannot Include
Even after a conditional offer, California puts large parts of your record off-limits. Government Code section 12952(a)(3) bars employers from considering or using:
- Arrests that didn’t lead to a conviction, with narrow exceptions under Labor Code section 432.7
- Participation in a pretrial or posttrial diversion program
- Convictions that were sealed, dismissed, expunged, or pardoned, including those dismissed under Penal Code section 1203.4
Labor Code section 432.7 covers the same ground and goes further. It applies to every employer in California regardless of size, prohibits asking about or using those records, and bars employers from seeking the information from any outside source. It also protects juvenile court records.3California Legislative Information. California Labor Code 432.7
A conviction dismissed under Penal Code 1203.4 still shows up on a background check report, but it appears as dismissed. The record isn’t hidden; the employer simply cannot use it against you.
Civil Code section 1786.18 adds a time cap on what the reporting agency itself can send. Criminal convictions generally cannot be reported if the date of disposition, release, or parole is more than seven years before the report date.4California Legislative Information. California Code Civil Code 1786.18 A narrow exception applies when a government regulatory agency explicitly requires a check for records that would otherwise be excluded.
Disclosure and Authorization Before the Check
Before an agency runs the report, ICRAA requires the employer to give you a written disclosure that is clear, conspicuous, and in a standalone document. It cannot be buried in the job application, an employee handbook, or any other form.5California Legislative Information. California Code Civil Code 1786.16 You then provide written authorization. The disclosure must include a checkbox letting you request a copy of the completed report; if you check it, the employer or agency must send you a copy within three business days of receiving it.
The federal FCRA imposes its own standalone written disclosure and written authorization requirements for consumer reports used for employment, and the employer must certify to the reporting agency that it has complied.6Federal Trade Commission. Fair Credit Reporting Act In practice, California employers using a third-party agency have to satisfy both statutes. The stricter standard controls.
If the Report Shows a Conviction
A conviction on the report doesn’t automatically end the offer. The Fair Chance Act requires the employer to make an individualized assessment linking your specific history to the specific job before deciding to pull the offer. The three required factors come straight from Government Code section 12952(c)(1)(A):
- The nature and gravity of the offense
- How much time has passed since the offense or completion of the sentence
- The nature of the job you were offered
Blanket policies that disqualify anyone with a conviction, without this case-by-case review, do not satisfy the statute. The employer may put the assessment in writing but is not required to.
Pre-Adverse Action Notice
If the assessment points toward a preliminary decision to disqualify you, the employer must send a written notice first. The notice has to identify the specific conviction or convictions driving the decision, include a copy of any conviction history report that was used, and explain your right to respond before the decision becomes final, including the deadline. It must also tell you that your response can include evidence challenging the accuracy of the report, evidence of rehabilitation or mitigating circumstances, or both.
Your Response Window
You get at least five business days to respond after receiving the pre-adverse action notice. If, within that window, you notify the employer in writing that you’re disputing the accuracy of the conviction report and are taking specific steps to gather supporting evidence, you get an additional five business days. The written notice has to describe the concrete steps you’re taking. A vague objection won’t trigger the extension.
Final Adverse Action Notice
If the employer considers your response and still decides to withdraw the offer, a final written notice must explain the decision and inform you of your right to file a complaint with the Civil Rights Department, along with any internal grievance procedures the employer has. The CRD accepts complaints filed within three years of the violation.2Civil Rights Department. Fair Chance Act: Criminal History and Employment
The FCRA imposes its own parallel pre-adverse action step: before taking adverse action based on a consumer report, the employer must give you a copy of the report and a written summary of your rights under federal law.7Office of the Law Revision Counsel. 15 U.S. Code 1681b – Permissible Purposes of Consumer Reports Skipping either the state or federal step creates liability under both.
Penalties and Remedies
ICRAA violations under Civil Code section 1786.50 expose the employer or reporting agency to the greater of actual damages or $10,000 per violation, plus attorney’s fees and costs.8California Legislative Information. California Code Civil Code 1786.50 The $10,000 floor makes a single procedural mistake expensive, especially when more than one applicant is affected.
Labor Code section 432.7 gives applicants actual damages or $200 (whichever is greater) plus attorney’s fees. Intentional violations push that to treble actual damages or $500, and the employer also faces misdemeanor charges punishable by a fine of up to $500.3California Legislative Information. California Labor Code 432.7
Fair Chance Act violations fall under the Fair Employment and Housing Act. Successful complainants can recover lost wages, emotional distress damages, and attorney’s fees, and the Civil Rights Department can impose civil penalties that scale with employer size and prior violations.
After the Hiring Decision: Record Destruction
Once the hiring decision is final, the FTC’s Disposal Rule requires anyone holding consumer report information for a business purpose to destroy it using reasonable measures that prevent unauthorized access. Paper records have to be shredded or burned. Electronic files have to be erased so the data can’t be reconstructed. Employers who outsource destruction must perform due diligence on the vendor, including reviewing audits or requiring trade association certification.9eCFR. Disposal of Consumer Report Information and Records Dropping the report in a recycling bin doesn’t qualify, and the rule reaches every piece of information derived from the report, not just the report itself.