Los Angeles County Passes Fair Chance Ordinance: What Employers Should Know

California is among the many states and jurisdictions that have led the adoption of Ban the Box and Fair Chance Hiring laws. Effective September 3, 2024, employers in the unincorporated areas of Los Angeles County must navigate another layer of complex regulations under a new Fair Chance Hiring Ordinance. 

This groundbreaking legislation, aimed at promoting equal employment opportunities, represents a major shift in how employers approach hiring practices, especially for those with prior criminal convictions. As organizations in Los Angeles County adapt to these new regulations, both employers and job seekers must understand the implications of this law.

In this blog, we’ll break down the key components of the Fair Chance Hiring Ordinance and provide practical insights on how you can adapt your practices to meet these new compliance standards.

Understanding the LA County Fair Chance Hiring Ordinance

The LA County Fair Chance Hiring Ordinance is designed to create more equitable employment opportunities for individuals with prior convictions. This ordinance imposes specific requirements on employers during the hiring process to ensure that all job applicants are given a fair evaluation based on their qualifications and abilities. 

Scope

The Fair Chance Hiring Ordinance applies to the following: 

• Employers with more than five employees located, doing business, or hiring in the unincorporated areas of Los Angeles County
• Employees (in-person, remote, or other) who work at least two hours each week within the unincorporated areas of Los Angeles Country

Under these new regulations, “employers” include individuals, firms, labor organizations, job placement, temp agencies, employment agencies, and nonprofit organizations. Employers are also defined as any entity evaluating an applicant’s or employee’s criminal history on behalf of an employer.  

More notably, this new ordinance defines “employment” more broadly to include temporary, part-time, seasonal, contracted, or contingent work, work through the services of an employment agency, non-profit organization, or any form of vocational or educational training, with or without pay. 

How the Fair Chance Hiring Ordinance Affects Employers

The LA County Fair Chance Hiring Ordinance introduces several new requirements that significantly impact how employers handle job applications and candidate evaluations. One of the primary changes is the prohibition of criminal history inquiries during the initial application phase. This new ordinance primarily impacts employers in four ways: 

1. Job posting requirements
2. Mandatory posting requirements and record-keeping
3. Background screening obligations
4. Adverse action

Requirements for Job Postings and Like Materials

Under the new ordinance, job postings and like materials are prohibited from containing language that may deter applicants with criminal histories from applying (i.e. “No felons”). These job postings and advertisements must also include language explicitly stating that qualified applicants with arrest or conviction records will be considered for employment. 

If local, state, or federal laws restrict hiring individuals with specific criminal histories, these laws must be stated within the job posting. Furthermore, job postings must include a list of material job duties that the employer reasonably believes a criminal history may directly and negatively impact, which could therefore result in withdrawal of the conditional employment offer. 

Mandatory Posting and Record-Keeping Requirements

Covered employers are required to post notice of the new ordinance at every workplace in the unincorporated areas of Los Angeles County. This includes physical workplaces and web pages frequently visited by applicants and employees. 

Additionally, employers must maintain all records, data, and documents related to the new ordinance – including job postings, conditional offers, and withdrawal letters – for a minimum of four years after the application date. 

Background Screening Obligations

To comply with the LA County Fair Chance Hiring Ordinance, employers must carefully review policies and procedures related to handling criminal history information. Aligning with the California Fair Chance Act, this ordinance prohibits employers from asking applicants about criminal convictions until after a conditional job offer has been made. 

Employers may not ask applicants about their criminal history until they receive the results of the criminal background check. Once an employer receives the results of the background check, a copy must be provided to the applicant before any discussions regarding criminal history. 

Employers that intend to conduct criminal background checks must provide the individual with a written notice containing the following:

• A statement informing the individual that the conditional offer is contingent on the criminal background check
•  A “good cause” justification statement explaining why the employer believes a criminal background check is relevant to the specific position
• A comprehensive list detailing the scope of the background check, including what information and history will be reviewed (i.e. education, employment, social media, driving history, drug testing, etc)

Additionally, there are several restrictions regarding the scope of questions employers may ask individuals about the results of their background checks. Under this new ordinance, employers are prohibited from considering:

• Convictions more than seven years old (with exceptions for certain roles)
• Non-felony convictions for possession of marijuana that are more than two years old
• Sealed, dismissed, and expunged convictions
• Juvenile records
• Arrests without convictions (unresolved arrests can be considered)
• Referrals to or participation in a diversion or deferral of judgment program
• Non-criminal infractions (except driving infractions for particular roles and industries)
• Convictions from conduct that has been decriminalized since the conviction

Individualized Assessments and Adverse Action

Under the LA County Fair Chance Hiring Ordinance, employers must conduct individualized assessments before taking any adverse action against the individual. This must be documented in writing and consider whether the applicant’s criminal history has a direct and negative impact on the individual’s ability to perform job requirements. Employers must consider the following when conducting individualized assessments: 

• The nature and gravity of the offense
• The time that has passed since the offense or completion of the sentence
• The job role, including consideration of the specific position duties
• Evidence of rehabilitation or mitigating circumstances provided by the individual

If an employer intends to withdraw the offer or take adverse action, you must provide the applicant or employee with a preliminary notice via mail and email. This pre-adverse action notice should include your intent to withdraw the offer or take adverse action due to the individual's criminal history, an explanation of their right to respond (including the waiting periods and timelines to respond), a copy of the individualized assessment, the specific convictions that are the basis for adverse action, and any information related to the applicant’s criminal history that was considered. 

After initiating pre-adverse action, employers must wait five days before finalizing adverse action or filling the position. During these five days, candidates can challenge the accuracy of the background check results or present evidence of rehabilitation or mitigating circumstances. In this case, you must provide five additional days before taking action. The new ordinance also requires employers to wait five business days from receipt, but candidates have fifteen additional business days if they need extra time to obtain evidence of accuracy or rehabilitation.

Under these new regulations, there are the same waiting periods. However, deadlines are based on when the employer mails the notice. The notice is considered received based on the delivery method:

• Five calendar days if mailed within California
• 10 calendar days if mailed outside of California
• 20 calendar days if mailed outside the United States
• Two business days if emailed

Employers must provide a secondary assessment document in writing before making a final decision. If the final decision does include adverse action, notice is required. The final notice must contain the following information:

• Notice of final decision
• Copy of the second individualized assessment
• Notice of the individual’s right to file a complaint with the Los Angeles County Department of Consumer & Business Affairs regarding violations of the ordinance and the state’s Civil Rights Department regarding violations of the Fair Chance Act

How Employers Can Comply with the Fair Chance Hiring Ordinance

LA County’s new Fair Chance Hiring Ordinance is extremely detailed. While the above summarizes several key factors and provisions, it is advised to consult your legal counsel for guidance regarding the implementation of policies and procedures to comply with the new requirements. 

At a minimum, employers operating in the unincorporated areas of Los Angeles County should evaluate their hiring practices to comply with the new changes. Since this ordinance specifically impacts criminal histories and background checks, it is advised to consider how and when your organization will inquire about criminal histories during the hiring process. 

Here are some suggested action items for employers in LA County and other jurisdictions with Clean Slate legislation: 

• Review and update job postings, applications, and like materials for impermissible inquiries/language regarding criminal histories
• Update workplace and website postings to ensure mandatory requirements are met
• Provide training to recruiters and hiring managers involved in posting job openings and descriptions
• Provide training to anyone conducting interviews around the permissible questioning of criminal histories
• Review job offer templates, pre-adverse action, and adverse action notices 
• Maintain comprehensive records
• Partner with a reputable, accredited background screening provider

Background Screening with Verified First

Incorporating comprehensive background screening practices can help maintain compliance with the LA County Fair Chance Hiring Ordinance. When you screen with Verified First, you can strengthen your compliance framework while creating a fair and transparent hiring process that upholds your commitment to equal employment opportunities. 

This communication is for informational purposes only and should not be viewed as legal advice. Your organization is responsible for your compliance with this new ordinance, and all other screening regulations. 

We take compliance seriously. Verified First is a PBSA-certified background check provider. Through comprehensive, accredited background checks, you can maintain your compliance framework without sacrificing speed, quality, or accuracy. We also integrate with 100+ (and counting) talent management solutions so you can easily order, review, and manage background checks and drug screening solutions in your chosen HR technology. 

Learn more about background screening.