As of July 2023, over 4.7 million people were employed in Los Angeles, California. That’s nearly three (3) percent of the nation’s workforce. With over 1.3 million small businesses, Los Angeles County faces heavy employment regulation. This regulation has increased since the LA County Fair Chance ordinance was adopted on February 7, 2024.
The operative date for administrative enforcement of this ordinance is September 3, 2024, which means it may be an excellent time to review some details.
LA County Fair Chance Ordinance: A Brief Overview
Firstly, it’s important to review who this ordinance applies to. The LA County Fair Chance Ordinance applies to employers with five or more employees in unincorporated areas of the county– which accounts for nearly 65 percent of the county’s geographic area.
As California employers know, the Fair Chance Act (FCA) has existed in the state since 2018. How do the California FCA and the LA County Fair Chance Ordinance differ? Here are some of the differences:
- The governing authority of the new ordinance is the LA County Department of Consumer and Business Affairs, which means more focused regulation.
- Under the new ordinance, a written assessment is required following a rescinded offer.
- Employers have only five days to respond to an applicant’s appeal to a rescinded offer.
- LA County is granted authority to impose additional penalties for non-compliance.
- This ordinance prohibits requests for voluntary and self-disclosure of criminal records.
Let’s review some of the compliance responsibilities in more depth. You can also consult a previous article for more information.
Compliance Responsibilities
Pre-Offer
Consistent with the California FCA, employers are prohibited from making any statement suggesting that candidates with certain criminal histories will not be considered for a position. Additionally, Los Angeles requires employers to explicitly state in postings and advertisements that all qualified applicants with criminal histories will be considered in a manner consistent with the law.*
*LA County employers must cite both the California FCA and LA County Fair Chance Ordinance in their postings and advertisements
Offer Letters
The California FCA doesn’t require any specific language in the offer letter. However, the LA County Fair Chance Ordinance will. Here are some of the County’s requirements:
- A statement of contingency (contingent upon criminal history)
- A statement that the employer can conduct a criminal history review. The employer must also include adequate supporting justification.
- The offer letter must specify what specific information the employer will review (e.g., drug screening, social media history, educational background).
Pre-Adverse Action Notice
Under the California FCA, employers are required to include the following in their pre-adverse action notice:
- Notice of disqualifying conviction(s)
- Copy of the report
- Right to respond statement with the deadline
- Right to dispute statement
- Mitigating circumstances/rehabilitation
The LA County Fair Chance Ordinance further requires that employers mail and email (if email is known) the pre-adverse action notice to candidates and clearly underline (or bold) all deadlines.
Adverse Action Notice
As already established by the state of California, employers must wait five (5) business days (and up to 15 days if the candidate is working to obtain additional information to dispute a finding) from the candidate’s receipt of the pre-adverse action notice.
In the case of mailing, “receipt” of the pre-adverse action notice has been further defined as such:
- After five (5) calendar days of being mailed within the state of California
- After ten (10) calendar days, if mailed outside of California
- After 20 days, if mailed outside of the United States
Since employers regulated by the LA County Fair Chance Ordinance are required to mail and email the pre-adverse notice, receipt is based on the mailing criteria above.
Takeaways
While complementary and largely similar to the California CFA, the LA County Fair Chance Ordinance introduces its own subset of regulatory obligations. Employers affected by this ordinance should expect stricter oversight and more compliance responsibility than before. Once in effect, regulated employers will be responsible for implementing all necessary changes or risk facing penalties.
For those under the regulatory umbrella of the LA County Fair Chance Ordinance, we recommend speaking and strategizing with your current screening provider to avoid any potential breaches of compliance.
For more information, reach out to us today.
Disclaimer: This article does not constitute legal advice. Peopletrail makes no such claims. All information within this publication is meant for general informational purposes only.
