Background Checks for Employees in California: Laws That Impact Background Screening

For HR departments in California, conducting background checks on potential new hires is a crucial part of the recruitment process. However, it’s important to note that there are several laws and regulations that impact background screening in the state. Understanding these laws is essential to ensure compliance and avoid any legal issues. In this blog post, we will discuss some of the key laws that impact background checks in California.

 

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Ban the Box Law

The Ban the Box Law in California prohibits employers from asking job applicants about criminal history until a conditional job offer has been made. This law aims to provide a fair chance for employment to individuals with criminal records. However, it’s important to note that there are exceptions to this law for certain positions, such as those in law enforcement or working with children.

 

California Consumer Credit Reporting Agencies Act (CCRAA)

The CCRAA regulates the collection, dissemination, and use of consumer credit reports for employment purposes. Under this law, employers must disclose their intent to obtain a credit report and must provide an opportunity for the employee to dispute any inaccurate information. Additionally, employers cannot use bankruptcy or credit scores as a factor in employment decisions.

 

Investigative Consumer Reporting Agencies Act (ICRAA)

The ICRAA governs the use of investigative consumer reports in employment screening. These reports include information on an individual’s character, reputation, lifestyle, and personal characteristics. Under this law, employers must disclose their intent to obtain such a report and provide the employee with a copy. The employee also has the right to request a summary of the report.

 

California Fair Credit Reporting Act (CFRA)

Under the CFRA, employers must provide written notice to the employee if adverse action is taken based on the information obtained in a consumer credit report or investigative consumer report. Adverse action means a denial of employment, promotion, or another employment-related decision. The notice must include the name and contact information of the reporting agency and a statement informing the employee of their rights under the law.

 

California Labor Code and Privacy Rights

California Labor Code section 432.7 prohibits employers from asking job applicants about certain types of criminal history, such as arrests that did not lead to conviction or sealed or expunged records. Additionally, the state’s privacy rights extend to personal information, including social security numbers, medical information, and other sensitive details that employers may collect during the background screening process.

 

Conducting background checks on potential new hires is a crucial part of the recruitment process for HR departments in California. However, it’s important to understand the laws and regulations that impact background screening to remain compliant and avoid any legal issues. The Ban the Box Law, CCRAA, ICRAA, CFRA, and California Labor Code, and Privacy Rights are just some of the key laws to consider when conducting background checks in California. By adhering to these laws, employers can ensure fairness and transparency in their recruitment process while protecting the rights of job applicants.

 

At PlusOne Screening Solutions

At PlusOne Screening Solutions, we lead the way in background screening with visionary leadership, a service-driven approach, and an unwavering commitment to excellence. As a premier background check provider, we ensure a hassle-free experience for both clients and applicants, prioritizing trust and reliability in every interaction.