California Background Checks for Employment: A Complete Guide [2026]

Background checks are an essential part of the hiring process. However, the rules surrounding them can be hard to understand.

This is especially true for pre-employment background checks in California, which require special considerations.

This means employers are virtually guaranteed to encounter previous convictions, arrests, and other considerations at some point in their hiring efforts.

This guide covers the legislation, requirements, and procedures you need to know about.

What is a California Background Check?

A California employment background check reviews a candidate’s criminal history, education, employment history, professional licenses, and other essential information to assess their qualifications for a position.

Employers across California use these screenings to verify applicant details and make informed hiring decisions based on accurate, reliable information.

Why Should Local Employers Conduct Background Checks?

1. Ensure Workplace Safety

Background checks help California businesses identify potential risks by revealing criminal records or past behaviors that could raise safety concerns for employees, clients, and the public.

Screening candidates for relevant offenses helps create a safe work environment.

2. Support Fair Hiring Practices

A standardized background check process ensures all candidates are evaluated consistently, reducing the risk of unconscious bias in hiring decisions.

Consistent screening promotes equal employment opportunities while helping employers avoid legal risks.

3. Comply with Regulations

California employers must follow federal, state, and industry-specific background check laws, including the California Fair Chance Act and local “ban-the-box” ordinances.

Industries regulated by the U.S. Department of Transportation (DOT) must also conduct DOT background checks and DOT drug testing for safety-sensitive roles.

California’s diverse economy spans industries with specific screening requirements:

• Tech companies in Silicon Valley, like Google and Apple, often screen for cybersecurity risks and verify credentials.
• Healthcare providers, such as Kaiser Permanente and Cedars-Sinai, conduct thorough background checks to protect patient safety.
• Financial institutions like Wells Fargo and Bank of America perform extensive screenings to comply with federal regulations and protect client assets.
• California state law requires criminal background checks for all community care license applicants, license holders, adult residents, certain volunteers, and employees of community care facilities who have contact with clients.

Following industry-specific screening protocols helps employers maintain workplace safety and regulatory compliance.

4. Reduce Negligent Hiring Risks

Failing to properly vet candidates can expose employers to legal liability if an unverified hire causes harm.

Comprehensive background screenings demonstrate due diligence and help protect businesses from negligent hiring lawsuits.

5. Build Trust with Clients

Many industries in California, including finance, healthcare, and legal services, require employees to handle sensitive client information.

Background checks help verify a candidate’s integrity and ensure they can be trusted to manage confidential data, reducing risks of fraud or security breaches.

6. Protect Corporate Reputation

Employees are representatives of the company, especially in public-facing roles.

Thorough background checks help employers avoid hiring individuals whose past conduct could damage the company’s reputation or erode customer trust.

What Shows Up on a California Background Check?

Most employers in California request details about an applicant’s criminal history, employment history, and educational qualifications.

Depending on the role, additional background information may also be reviewed.

Criminal History Information

If an applicant has a reportable criminal record, the background check may include:

• Criminal case number
• Jurisdiction
• Date of the offense
• Nature of the charges
• Classification level (misdemeanor or felony)
• Case disposition
• Disposition date
• Sentence (if applicable)

Employers are encouraged to evaluate criminal records in context rather than disqualifying candidates automatically.

Each case should be considered based on the job’s responsibilities and workplace safety to ensure fair hiring practices.

Consumer reporting agencies cannot disclose sealed, expunged, or pardoned records.

Education Verification

Education verification confirms that candidates meet the academic qualifications for the position.

This may include:

• Institution name(s) and location(s)
• Enrollment periods
• Degrees or diplomas earned

This process helps employers verify the accuracy of an applicant’s educational background.

Employment Verification

Employment verification checks a candidate’s work history by reviewing:

• Company names and locations
• Employment start and end dates
• Job titles and positions held

This helps employers confirm the accuracy of a candidate’s work history and identify any unexplained employment gaps.

Professional License Verification

For roles that require certifications or licenses, this check verifies:

• License validity
• License type
• License number
• Licensee’s name
• Issuing organization
• Issuance and expiration dates
• Public disciplinary records

This ensures that candidates in regulated industries hold valid credentials for their positions.

Identity Verification

Identity verification confirms the candidate’s personal information, including:

• Full legal name and known aliases
• Address history
• Date of birth

This helps ensure the background check is run on the correct individual, reducing the risk of errors or misidentification.

Motor Vehicle Records (MVR) Check

An MVR check provides details about a candidate’s driving history, including:

• Driver’s license number
• License class
• Issuance and expiration dates
• Legal name and registered address
• Traffic infractions and major traffic offenses
• License suspensions or revocations

For driving-related roles, this check helps confirm the candidate is a safe, responsible driver who meets insurance and safety requirements.

Important Laws and Regulations

Federal Laws

Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA) is a federal consumer privacy law that protects information that consumer reporting agencies (CRAs) report about consumers to third parties, including employers.

The FCRA includes a seven-year reporting rule that restricts CRAs from reporting the following information when it’s seven years or older and the job pays less than $75,000:

• Arrests not leading to convictions
• Paid tax liens
• Civil lawsuits and judgments
• Debt collections
• Chapter 13 bankruptcies (Chapter 7 can be reported for 10 years)

While the FCRA doesn’t restrict the reporting of conviction records older than seven years, California law does, as explained below.

Federal FCRA guidelines apply to employers that use background checks prepared by third-party providers.

Employers must give the applicant written notice on a standalone form that they will undergo background checks and obtain the applicant’s written authorization before initiating a search.

If you learn information from a background check that makes you want to deny employment, you must complete the following adverse action steps before making a final decision:

• Send a pre-adverse action notice to the applicant with a copy of the report that contains the concerning information.
• Give the applicant a reasonable chance to respond (typically, five business days) with evidence that the information is wrong or that they have been rehabilitated.
• Send a final adverse action notice if you ultimately decide not to hire the applicant. Include a copy of their FCRA rights and their rights under state law.

Title VII of the Civil Rights Act of 1964

Title VII of the Civil Rights Act of 1964 (Title VII) is a federal anti-discrimination law enforced by the Equal Employment Opportunity Commission (EEOC).

Title VII prohibits employers from discriminating against applicants or employees based on the following protected characteristics:

• Race
• National origin
• Color
• Gender
• Religion or creed

Additional laws have expanded protections to include:

• Disability
• Age (40 and older)
• Pregnancy
• Gender identity
• Sexual orientation
• Genetic information
• Citizenship status

When you learn about an applicant’s criminal record from a background check, EEOC guidance requires employers to individually assess that information as it relates to the job’s duties and workplace safety before basing a decision not to hire the applicant on that information.

Fair Chance to Compete for Jobs Act

The Fair Chance to Compete for Jobs Act (FCA) is a federal fair chance hiring law that applies to federal agencies and federal contractors, including private companies that contract with the federal government.

Under the FCA, covered employers are prohibited from asking about a candidate’s criminal history until after they make a conditional job offer.

If you violate this law, you won’t be able to obtain or continue federal contracts.

State Laws

ICRAA/CCRAA

In Connor v. First Student, Inc., 239 Cal.App.4th 526 (2015), the California Supreme Court affirmed the Court of Appeals decision that both the Investigative Consumer Reporting Agencies Act (ICRAA) and the Consumer Credit Reporting Agencies Act (CCRAA) now apply to certain employer background checks.

Here’s what you need to know about the ICRAA and the CCRAA.

ICRAA

The ICRAA contains several clauses that are stricter than the FCRA. The ICRAA supersedes the FCRA in any provision where it’s more restrictive.

For example, Section 1786.18 only allows CRAs to report pending criminal cases and criminal convictions from the last seven years.

The ICRAA also restricts how and when employers can generate background check reports.

According to Section 1786.16 (2)(B)(iv), employers can’t seek or generate an investigative consumer report unless all of the following conditions are met:

• The employer provides a clear and conspicuous, written disclosure before the report is initiated, and
• The disclosure must identify the CRA’s name, address, website, and telephone number.

Special Consumer Authorization Form Required

Under Section 1786.16(5)(b)(1), the CRA must include a check box on the Consumer Authorization form that the consumer can select if they wish to receive a copy of the report.

If the applicant checks the box, the CRA must send it within three business days of when the employer receives the background report.

When a consumer requests a copy of their report, the CRA must also send a copy of their rights in English and Spanish, which can be sent by mail or email.

More Stringent Seven-Year Lookback Rule

The ICRAA’s seven-year rule is found at Cal. Civ. Code 1786.18(a)(7).

It bars the reporting of older conviction data, while the FCRA does not.

While the FCRA provides a salary threshold of $75,000 and allows old conviction data to be reported regardless of age, the ICRAA has no such threshold.

This means that CRAs must comply with the ICRAA’s more restrictive clause and avoid reporting convictions older than seven years, regardless of salary.

Another difference is that this provision prohibits CRAs from reporting non-conviction information, including arrests and indictments, even if they occurred within the last seven years, when they didn’t lead to convictions.

The ICRAA also bars CRAs from reporting evictions (unlawful detainers) that the consumer won or that were resolved through settlement.

Pending cases can be reported.

Finally, California’s expungement and clean slate laws may affect the application of the seven-year rule, as detailed below.

Privacy Policy and Disclosure Requirements

Per Section 1786.20, CRAs must adopt and provide a privacy practice policy that meets the following requirements:

• Must include a statement titled: “Personal Information Disclosure: United States or Overseas” that explains whether the consumer’s personal information will be transmitted to third parties outside of the US or US territories, which includes the CRA’s employees who work outside of the US, contractors, wholly owned entities, and contractors working for the CRA.
• Must be posted to the CRA’s website, or, if there isn’t a website, must be provided to the consumer in writing upon request

To meet this requirement, the disclosure and authorization form should include the CRA’s website address in addition to its name, address, and telephone number.

Additional Notice Requirements

Under Section 1786.29, the ICRAA mandates CRAs to include a series of notices on the first page of the investigative consumer reports they produce, including a notification in 12-point boldface type that the report doesn’t guarantee the truthfulness or accuracy of the information contained.

It also must include a notice that the information comes from the public record and that identity theft and criminal activity may alter the results.

The ICRAA lays out additional requirements for investigative consumer reporting agencies in Section 1786.22, which compliance-minded employers should read in full.

Currency of Records

Under Cal. Civ. Code § 1786.28(a) of the ICRAA, CRAs must specify the particular sources from which the information was obtained and the date it was obtained.

Per § 1786.28(b), CRAs must also have strict procedures in place to ensure that any public record information that could have an adverse effect on an applicant is accurate, complete, and up to date.

Appeals Court Decisions Regarding Actual Harm

Two separate California Courts of Appeal decisions held that employees do not have to prove actual damages to pursue claims under the ICRAA against employers and/or CRAs.

These decisions mean that employees don’t have to prove actual damages to recover penalties. The penalties can be a minimum of $10,000 per violation.

With potential liability risks being high and potentially expensive, employers should take special care to review the ICRAA and ensure they understand and comply with all of its provisions.

CCRAA

The CCRAA follows alongside the ICRAA in most ways, but it deviates concerning credit reports.

According to CCRAA Section 1785.20.5, credit reports and investigative consumer reports are considered background reports.

The CCRAA requires employers and CRAs to provide a copy of the reports to the applicant contemporaneously and at no charge.

California Consumer Privacy Act (CCPA) and New Regulations

The CCPA was amended by the California Privacy Rights Act (CPRA), effective in 2020.

New regulations under the CCPA and the CPRA have since been passed, with some regulations taking effect on Jan. 1, 2026, more taking effect on Jan. 1, 2027, and final reporting requirements taking effect on Jan. 1, 2028.

The CPRA expanded the privacy rights of consumers, including job applicants, and established strict requirements for employers that hire third-party companies to conduct their background checks, as opposed to employers who perform background checks themselves.

For employers who DIY their investigations, the CCPA requires employers to give applicants the option to “opt in” to receive a copy of their background check reports.

The checkbox must be located either in the job application or in the written notice of the background check, which is required by FCRA.

If the applicant does opt in, he or she must receive a copy of the report within three days of when the employer receives it.

If the employer chooses to hire a third-party agency to conduct background checks, CCPA requires the employer to issue what it calls a “clear and conspicuous” notice.

This notice must be in writing and must cover the “nature and scope” of the background check (Cal. Civil Code § 1786.16(2)(B)(v)).

If the employer’s third-party background check company also intends to interview the applicant’s references, the employer must:

• State the purpose of the investigation.
• Give the applicant contact information for the investigation agency.
• Give the applicant a summary of their rights to see and copy any reports about them.
• Provide the applicant with a checkbox they can check if they want to receive a copy, which must then be sent to the applicant within three days of the employer receiving the completed report.

There is one notable exception. If the employer is conducting a background check because they suspect the applicant has engaged in wrongdoing or misconduct, the CCPA waives the requirement to provide notice and obtain the applicant’s consent for the background check.

The new regulations provide the following updates to the CCPA/CPRA:

• Required opt-out confirmation – When applicants choose to opt out of sharing their information, businesses must display a confirmation in real time.
• Enhanced right to know – Consumers may request the personal information stored about them for the past 12 months by a business.
• Privacy policy disclosure updates – Businesses must disclose the categories of personal information shared with third parties to individuals, and they must now also disclose the categories of personal information shared with contractors or service providers in the last 12 months.
• Additional notice of right to limit – Businesses must provide a notice to consumers of their right to limit the business from sharing or selling their personal information.
• Disclosure about automated decision-making technology and right to opt out – Businesses that use automated decision-making technology (ADMT) must disclose their use and allow individuals to opt out.
• Mandatory cybersecurity audits – Businesses must conduct compliant cybersecurity audits to ensure consumers’ private information is protected.

Certain Questions Prohibited

Under CA Labor Code 432.7, public and private employers are prohibited from asking a job applicant about or basing a hiring decision on:

• Criminal charges that did not end in a conviction
• Pre-trial or post-trial diversion programs
• Dismissed or sealed convictions

California employers can ask about pending criminal charges.

Redaction of Birthdates on Court Records

In All of Us or None of Us v. Hamrick, Cal. Ct. App., 4th Appellate Dist., 1st Div. No. D076524 (2021), the Court of Appeal reversed the trial court’s decision that court clerks do not have to redact dates of birth and driver’s license numbers from court records.

When the lower court received the case back, it then ruled on behalf of the plaintiffs, holding that as a matter of law, courts must redact birthdates and driver’s license numbers from court records.

The California Supreme Court denied a review of the decision. This means that courts must redact all personal identifiers from criminal court records other than names.

This affects employment background checks in the state since consumer reporting agencies must rely on a minimum of two identifiers to verify that a criminal record belongs to an applicant.

Unverifiable criminal history information cannot be reported.

While the decision makes employment background checks more difficult, iprospectcheck has adapted new methods and processes to this decision and can still provide reliable criminal history reports about applicants who have lived or worked in California to employers.

Governor Newsom’s Veto of SB 1262

The California Legislature passed SB 1262 and presented it to Gov. Newsom on Sept. 13, 2022, for his signature.

This bill would have corrected the problem caused by the All of Us or None of Us vs. Hamrick appellate decision that prevented background check companies from confirming criminal court records by date of birth.

The Legislature had added a single line to Cal. Gov. Code § 69842 to allow searches of publicly accessible electronic databases by dates of birth, driver’s license numbers, or both.

On Sept. 29, 2022, Gov. Newsom vetoed the bill and returned it to the Legislature with a memo stating that he could not sign it because it would allow members of the public in addition to background check companies to search publicly available electronic databases by date of birth or driver’s license and would thus override the Court of Appeal’s decision in Hamrick.

Automatic Record Sealing

SB-731 was signed into law by California Governor Gavin Newsom on September 29, 2022.

It provides for the automatic sealing of felony records for non-sex offender-related, non-violent offenses that meet the following criteria:

• The individual’s conviction took place after January 1, 2005.
• The individual has not been convicted of any new felony for four years.
• The individual’s sentence, probation, or parole was completed as directed.
• The new law will expunge these records from public view and make them difficult for most employers to access during background checks.

California Fair Chance Act

The California Fair Chance Act applies to private and public employers in California with five or more employees unless an exception applies.

Codified at Ca. Govt. Code § 12952, this law prohibits employers from inquiring about an applicant’s criminal history before making a conditional job offer and requires them to individually assess applicants’ criminal records in terms of the nature and severity of the offense, how much time has passed since the offense occurred, and the nature of the job before making a final decision not to hire.

Recently, some modifications were made to the regulations under the Fair Chance Act, and they went into effect on October 1, 2023.

These changes are significant and are detailed in the following section.

Regulatory Changes under the FCA

The California Civil Rights Commission (CCRC) modified Cal. Code Regs. tit. 2 § 11017.1, which was effective on Oct. 1, 2023.

The modifications instituted several changes that employers must know, including:

• The definition of an applicant was expanded to include existing employees when they are under consideration for a promotion, transfer, etc.
• Employers are prohibited from inquiring about criminal history information or disseminating it in any form or manner before making a conditional job offer, including through background checks, internet searches, or other means.
• If an applicant voluntarily discloses a conviction, the employer may not consider it until after making a conditional job offer.
• Employers are expressly prohibited from including any language in advertisements, applications, or other job-related materials that individuals with criminal records won’t be considered.
• If an employer violates the prohibition on inquiring into an applicant’s criminal record before making a conditional job offer, they can’t use the applicant’s nondisclosure of that information against them after making a conditional employment offer.
• Employers may never consider an applicant’s arrest that didn’t result in a conviction, an expunged record, a juvenile arrest or detention, or a non-felony marijuana conviction that is two or more years old.
• Employers that want to deny employment based on criminal history information learned through a background check, internet search, voluntary disclosure, or another means must first complete an individualized assessment that involves a consideration of the following factors: 1) the nature and severity of the conduct/offense; 2) how much time has passed since the offense; and 3) the duties of the job for which the individual is under consideration.
• The individualized assessment must be completed before the employer sends a preliminary notice of adverse action to the applicant.
• The employer must give the applicant at least five business days to respond to the preliminary notice from the date of receipt of the notice. This has been defined as two days after an email has been sent; five days if the notice was sent by mail in California; 10 days after a notice was sent by mail to an applicant in another state other than California; or 20 days after a notice was sent by mail to an international applicant.
• The employer must consider any evidence the applicant submits showing rehabilitation or mitigating evidence about the circumstances surrounding the conduct before making a final decision.
• If the employer makes a final decision not to hire the applicant, they must notify them in writing, include a copy of their rights, and inform them that they have a right to appeal the decision with the CCRC.

Los Angeles County Fair Chance Ordinance

Los Angeles County’s Fair Chance Ordinance applies to private and public employers operating within unincorporated areas of the county with five employees working a minimum of two hours in the Los Angeles County unincorporated area per week.

The law applies even if the employer is located outside the county’s unincorporated area.

Since CRAs will not know whether an employer has an employee working at least two hours per week in the unincorporated area, complying with the county’s Fair Chance Ordinance is the employer’s responsibility.

The requirements of the Los Angeles County Fair Chance Ordinance are similar to those of the City of Los Angeles’s Fair Chance Ordinance. CRAs will not report convictions older than seven years, regardless of confinement periods.

CRAs can’t report the following information:

• Arrests without convictions (excluding pending cases)
• Dismissed criminal cases
• Sealed or expunged convictions
• Convictions for decriminalized crimes
• Juvenile records
• Misdemeanor marijuana convictions older than two years

The seven-year lookback rule doesn’t apply to jobs involving care for vulnerable populations, including minors, dependent adults, and seniors over age 65.

It also doesn’t apply to jobs involving the administration of public benefits or public funds.

The exception for jobs involving the administration of public funds or benefits is limited to the reporting of convictions for the following:

• Illegal access to funds/negotiable instruments
• Fraud
• Bribery
• Forgery
• Embezzlement
• Receiving stolen property
• Theft
• Robbery

Note that this exception doesn’t apply to positions involving the administration of private funds or benefits.

Employers must comply with multiple rules under the Los Angeles County Fair Chance Ordinance, including:

• No questions about criminal history before the interview
• No consideration of criminal history information the applicant voluntarily provides
• No criminal background check before a conditional employment offer
• Special notice is to be provided to the applicant before obtaining a background check for criminal history or other searches
• Completion of a written, individualized assessment with specific time frames from the applicant’s response

Special Notice Requirement

The special notice must state the following:

• The employment offer is contingent on the employer’s review of the applicant’s criminal record.
• The specific types of information the background check will include (i.e., criminal history, employment verification, education verification, motor vehicle records, professional license verification, etc.)
• The position’s material job requirements
• A specific good cause statement for conducting a criminal background check, such as the employer faces a significant risk to its operations or reputation unless it completes the review, or the position creates a significant risk of safety, harassment, or harm to the company, vendors, contractors, clients, associates, customers, or public.
• Employers must provide this special notice even if they intend to complete Google searches or social media searches outside the background check process.

The notice must be job-specific, so there isn’t a consent form available. However, an employer can create an initial form and tailor it for each job.

Employers required to conduct background checks by law must state that in all job advertisements.

The employer must list those offenses in the published job notice if the law only requires checks for specific crimes.

Written Assessment Requirement

Employers that don’t want to hire an applicant based on their criminal record must complete a written assessment and provide a copy to the applicant.

The assessment must be specific and relate to one or more of the position’s requirements.

If the applicant provides evidence of rehabilitation, the employer must then complete a new assessment.

The time frames employers must provide to applicants for the provision of mitigating or rehabilitation evidence include:

• A minimum of five business days from the applicant’s receipt of the pre-adverse action notice
• 10 additional days to provide evidence of mitigating circumstances or rehabilitation, either orally or in writing
• Two days are added if the notice is delivered by US postal mail.
• The employer can inform the applicant that the position will be closed if the applicant does not respond within 10 days when holding the position open would cause an undue burden on the employer, and the employer explains why it would.

Penalties

Employers that violate the Los Angeles County Fair Chance Ordinance can face the following penalties:

• $5,000 per aggrieved employee for an initial violation
• $10,000 per aggrieved employee for a subsequent violation
• Potential suspension or revocation of a business license for serious violations

Employers should carefully review the new ordinance and consult legal counsel to maintain compliance.

California Expungement Law

Under Cal. Pen. Code § 1203.4, some people convicted of misdemeanors or felonies in California can petition the court to have their records expunged.

Expungement removes the conviction from the individual’s criminal record, and an applicant with an expunged record is not legally required to report it.

People are eligible to apply for an expungement if they have been convicted of misdemeanors or felonies, have completed probation, and have not served time in state prison.

It is also available to those who did serve time in prison but would have otherwise been sentenced to serve time in jail if they had committed the offense after realignment under 2014 Cal. Proposition 47.

People who served time in prison and served as firefighters in a prison fire camp are also eligible for expungement under 2020 AB 2147.

Certain crimes cannot be expunged regardless of whether the individual completed probation, including the following:

• Child pornography offenses
• Sexual assault crimes
• Lewd and lascivious acts with minors

If an applicant has expunged criminal records, they won’t have to voluntarily disclose them. A criminal background check for employment also won’t report expunged criminal records.

Conviction Relief: California’s Clean Slate Law

California’s Clean Slate Law is codified at Cal. Pen. Code § 851.93 and was effective on Jan. 1, 2023.

Under this law, the California Department of Justice (CDOJ) must review court records each month and expunge any arrests that didn’t lead to convictions within three years of the arrest date.

They must also expunge any information about criminal matters for which the individual completed pretrial diversion, drug diversion, or another type of qualified diversion program.

Finally, this law allows people who have been convicted of felony crimes to petition the court to withdraw their guilty pleas and enter pleas of not guilty.

If the court finds that doing so is in the interest of justice, the guilty pleas will be withdrawn, and not guilty pleas will be entered.

While this process is not automatic, the effect of the entry of a not-guilty plea is that the previous conviction can’t be reported.

Under the clean slate law, automatically expunged criminal records can’t be reported, and individuals do not have to report them on applications, resumes, or during interviews.

Dismissal and Sealing of Certain Past Marijuana Convictions

Following the passage of recreational marijuana in California, the Legislature passed AB 1793, which was signed into law by the Governor on Sept. 30, 2018.

Under this law, people with past convictions for marijuana possession, cultivation, distribution, or transportation of up to 28.5 grams of cannabis or up to eight grams of concentrated cannabis had their convictions automatically dismissed and sealed.

This means that those dismissed and sealed convictions will not be reported on criminal background checks for employment.

Employment Discrimination Based on Out-of-Work Marijuana Use Prohibited

California Gov. Gavin Newsom signed AB-2188 into law on September 18, 2022.

This law prohibits employment discrimination against applicants and employees based on their use of marijuana outside of the workplace and became effective on Jan. 1, 2024.

AB-2188 does not prohibit employer testing for marijuana, but employers can only act on positive drug test results when the tests reveal the presence of the psychoactive ingredient, delta-9-tetrahydrocannabinol.

Many drug tests return positive results for marijuana based on their detection of non-psychoactive metabolites that remain in the body long after someone has used marijuana and is no longer impaired.

The following are exempt from this law:

• Employers required to test for marijuana by federal or state laws or regulations
• Positions requiring security clearances
• Employers that must test for marijuana as a condition of engaging in federal contracts
• Possession, use, or impairment during work hours or on the premises
• Jobs that require federal government background checks
• Employers in the construction and building trades

Applicants and employees who believe their employers have violated this law can file discrimination complaints with the California Civil Rights Department (CRD) and pursue discrimination lawsuits against their employers to recover damages.

Pay Transparency Law

SB 1162 was signed into law by Gov. Newsom on Sept. 27, 2022, and became effective on Jan. 1, 2023.

This law requires employers to post pay scales and ranges for positions in their job postings both internally and externally.

This law applies to all employers with 15 or more employees.

Fair Chance Law for Caregivers and Home Health Applicants

Cal. AB 1720 allows people with old convictions to work as home health aides or caregivers as long as they meet the qualifications and receive an exemption from the Department of Social Services.

Applicants and prospective volunteers with qualifying old convictions who are approved for exemptions can be hired by caregiving organizations despite licensing requirements.

Certain convictions are ineligible, including sex offenses, felony offenses, and others.

Can’t Require Applicants or Employees to Pay for Background Checks

Under Cal. Lab. Code §§ 450-452, employers can’t require applicants or employees to pay for anything of value in connection with their application or employment.

This includes asking applicants or employees to pay for the cost of a background check.

Can’t Require Applicants to Pay for Pre-Employment Medical or Physical Exams

Under Cal. Lab. Code § 222.5, employers are prohibited from asking an applicant to pay for a pre-employment physical or medical exam.

Social Media Privacy Law

Under Ca. Lab. Code § 980, employers may not ask an applicant or employee to:

• Disclose their social media usernames or passwords to the employer
• Access their social media accounts in the employer’s presence
• Divulge information about their social media accounts.

Employers may ask employees to divulge social media information that’s relevant to an investigation, however.

San Francisco Amended Fair Chance Ordinance

San Francisco amended its Fair Chance Ordinance, effective August 1, 2026.

This law applies to all employers with five or more employees operating in the city.

Employers can’t ask about or require an applicant to divulge criminal history information until after they make conditional job offers.

How to Conduct a Background Check in California

1. Create a Compliant Background Check Policy

Start by creating a clear background check policy that aligns with federal, California state, and local laws.

Outline the procedures your HR team will follow before, during, and after the background check.

Specify which types of background searches apply to specific roles based on duties and levels of responsibility.

2. Train HR Personnel

Ensure that all HR professionals involved in background screening receive proper training.

They should fully understand the legal guidelines and how to prevent bias or discrimination during the process.

3. Adhere to Notice and Consent Requirements

California law, along with the FCRA, requires that you give applicants a written disclosure stating that a background check will be conducted.

This disclosure must be separate from other paperwork and easy to understand.

You also need written permission from the applicant before running the background check.

4. Partner with a Trusted Background Check Company

Choose a reputable background screening provider like iprospectcheck, known for delivering accurate, up-to-date reports that meet California’s legal standards.

Look for companies experienced in California’s unique background check regulations.

5. Select the Right Screening Components

Decide which background check elements are necessary based on the job’s responsibilities.

Focusing on role-specific searches helps reduce unnecessary costs and ensures relevance.

6. Review Results and Communicate Next Steps

Carefully review the completed background report once it’s received.

If the candidate remains a good fit, move forward with your hiring or onboarding steps. If the report raises concerns, follow proper procedures before making any decisions.

7. Conduct an Individualized Assessment of Criminal Records

Do not automatically reject applicants because of a criminal record.

California law requires you to evaluate each conviction in the context of the role’s duties and potential safety risks.

8. Complete the Adverse Action Process if Necessary

If you decide not to hire based on background findings, you must complete the adverse action steps required by law:

• Issue a Pre-Adverse Action Notice – Provide written notice explaining the problematic findings and include a copy of the report.
• Give Time for a Response – Allow the candidate a reasonable period (commonly five business days) to dispute the report or provide additional information.
• Send a Final Adverse Action Notice – If you move forward with denial, send a final notice along with the candidate’s rights under the FCRA.

Get a California Background Check with iprospectcheck

At iprospectcheck, we work to remain up to date with changes to the laws as they occur.

Our team members are thoroughly trained and know the requirements they must follow when they conduct pre-employment background checks and send reports to our clients.

To learn more about our screening services and how we can help you, contact us to schedule a no-obligation, free consultation: (888) 509-1979

DISCLAIMER: The resources provided here are for educational purposes only and do not constitute legal advice. Consult your own counsel if you have legal questions related to your specific practices and compliance with applicable laws.