California Criminal Background Checks: Common Employer Mistakes

California criminal background checks are a critical part of the hiring process, yet many employers misunderstand how to apply them legally. California’s strict employment laws are designed to protect applicants’ rights while still allowing businesses to make informed hiring decisions. When employers fail to follow these rules, they risk non-compliance, costly penalties, and legal disputes. Below are the most common mistakes employers make—and how to avoid them.

Misunderstanding Ban-the-Box Laws

One common mistake employers make is failing to fully understand California’s “ban-the-box” law. Under the Fair Chance Act, employers with five or more employees cannot ask about an applicant’s criminal history on the initial job application. This law is intended to ensure that applicants get a fair chance to demonstrate their qualifications before their criminal record is considered.

Unfortunately, some employers still include questions about criminal history in preliminary hiring documents or during the first interview, violating this regulation. To comply, employers should carefully review their application forms and screening processes to remove any prohibited questions. Transitioning to compliant practices not only avoids penalties but also builds trust with potential hires.

Overlooking Individualized Assessments

Another frequent issue is neglecting the requirement for an individualized assessment. After discovering a criminal record, California employers must evaluate whether the offense is directly relevant to the job. For example, a 10-year-old misdemeanor unrelated to the role’s responsibilities may not justify disqualification.

Failing to conduct this assessment can result in claims of discrimination. To avoid this, businesses should develop clear guidelines for assessing criminal records and document these evaluations consistently. Adopting an objective and fair process minimizes the risk of legal disputes.

Ignoring Pre-Adverse and Adverse Action Notifications

Employers are often unaware of their obligation to follow specific adverse action procedures under the Fair Credit Reporting Act (FCRA) and California laws. If an employer decides not to hire someone based on their background check, they must first send a pre-adverse action notice. This includes a copy of the report and the opportunity for the applicant to dispute inaccuracies. Only after this step can an adverse action notice be issued.

Skipping or mishandling these notifications is a major compliance error. Employers should work with a trusted background check provider to ensure all adverse action steps are followed correctly. Striving for transparency throughout the process not only safeguards compliance but also enhances the candidate experience.

Assuming Standardized Screening Works for All Roles

Employers often implement a one-size-fits-all approach to screening, which can lead to unnecessary complications. California’s laws mandate thoughtful consideration of whether a background check applies to the specific role in question. For example, positions involving financial responsibilities may require credit checks, while others may not.

By tailoring screening practices to each position, employers can demonstrate due diligence and avoid allegations of overreach. Investing in customized screening strategies promotes both compliance and efficiency within the hiring process.

Failing to Stay Updated on Changing Regulations

California’s employment laws are dynamic, with new regulations and interpretations emerging regularly. Employers who fail to stay informed risk non-compliance with updated requirements. For example, changes to local ordinances or timing rules can impede proper implementation if ignored.

To address this, employers should proactively monitor legal updates and provide regular training for hiring managers and HR teams. Partnering with an expert background screening provider can also ensure compliance with the latest requirements.

Best Practices for Avoiding Compliance Pitfalls

Here are actionable steps employers can take to align their background check processes with California’s legal standards:

• Review Policies Regularly: Conduct audits of hiring practices to identify and address non-compliant procedures.
• Train HR Teams: Provide comprehensive training to ensure all team members understand legal requirements.
• Use Trusted Providers: Work with a compliant screening partner to streamline processes and ensure accuracy.
• Document Everything: Keep records of individualized assessments, notifications, and decisions to demonstrate compliance in case of audits.

By implementing these best practices, employers can foster a fair and lawful hiring process that attracts top talent while minimizing risk.

Ready to Strengthen Your Workforce?

At Plexus Global, we empower California employers to achieve smarter, safer, and fully compliant background screening processes. Our team stays on top of changing laws and industry standards, so you don’t have to.