What is the Fair Chance Ordinance recently introduced in Los Angeles all about?

Los Angeles County recently passed a new Fair Chance ordinance that expands on California’s existing Ban the Box law. Going into effect on September 3, 2024, the ordinance introduces additional fair chance hiring requirements that employers with 5 or more employees in unincorporated areas of LA County must follow. In this article we talk about What is the Fair Chance Ordinance recently introduced in Los Angeles all about.

Who Does This Apply To?

The LA County Fair Chance Ordinance applies to private employers with 5 or more employees that are located in unincorporated areas of the county. This is a lower threshold than the statewide Ban the Box law, which typically applies to employers with 15 or more employees. As a result, more small businesses in LA County will need to comply with fair chance hiring requirements.

What’s Required in Job Postings?

Under the new ordinance, employer job postings must:

• State that the company considers qualified applicants with criminal histories.
• List any specific legal restrictions that would automatically disqualify applicants with certain conviction records from the position.
• For jobs where a criminal record may negatively impact hiring, include a detailed list of material duties that background checks would be relevant for.

Changes to Making Conditional Offers

The ordinance also introduces new regulations around how employers make conditional offers:

• Employers cannot ask about or consider an applicant’s criminal history until a conditional offer has been made.
• If the employer intends to conduct a background check at the conditional offer stage, they must provide written notice that the offer depends on the results.
• This notice must explain why a background check is necessary for the position and list all types of information that will be reviewed (i.e. education, employment history, drug testing).

Limits on Considering Criminal Records

Furthermore, the ordinance restricts considering certain aspects of applicants’ criminal records, including:

• Arrests not followed by a conviction
• Participation in diversion programs
• Sealed, dismissed, or expunged convictions
• Juvenile records
• Non-felony marijuana possession convictions over 2 years old
• Any conviction over 7 years old
• Infractions, with some exceptions
• Decriminalized conduct

Individualized Assessment and Preliminary Notice

Before rescinding a conditional offer based on criminal history, employers must complete an individualized assessment. If the employer still intends to withdraw the offer, they must send the applicant written preliminary notice.

This preliminary notice must:

• State intent to withdraw the conditional offer or take other adverse action
• Explain the applicant’s right to respond and relevant timelines
• Include a copy of the initial assessment
• List the specific disqualifying convictions
• Provide a copy of the background check report and any other criminal history information considered

Applicant’s Right to Dispute

A key aspect of the ordinance is that it allows applicants to contest adverse decisions based on their records. Applicants have 5 days to challenge the accuracy of their criminal history information or present evidence of rehabilitation.

If disputed, employers must conduct a second individualized assessment before finalizing their decision.

Notice and Posting Requirements

The ordinance requires employers to post notice of the policy at worksites in unincorporated areas of LA County. They must also retain relevant hiring records for 4 years.

Enforcement and Penalties

The County’s Department of Consumer and Business Affairs is authorized to investigate violations and impose fines from $5,000 to $20,000 per violation. Applicants can also file complaints and lawsuits against non-compliant employers.

Key Takeaways

LA County employers with 5+ employees should review their background check policies and procedures to ensure compliance with new fair chance hiring requirements. This includes changes to job postings, conditional offers, considering criminal records, individualized assessments, and applicant notice procedures. I sincerely hope you find this “What is the Fair Chance Ordinance recently introduced in Los Angeles all about?” article helpful.