LA County’s 2024 Fair Chance Ordinance for Employers

Los Angeles County has introduced a new Fair Chance Ordinance for employers, effective September 3, 2024. Previously, we tracked other Fair Chance laws in other states, such as Maine and New York's Fair Chance guidance update.

The 2024 ordinance in LA County is an extension of California's 2018 Fair Chance Act and the city's previous Fair Chance Initiative for Hiring Ordinance. Some highlights for Los Angeles' new ordinance are outlined below.

What does LA's 2024 Fair Chance Ordinance for Employers include?

LA County’s Fair Chance Ordinance touches every stage of the hiring process, including job postings and announcements, what inquiries can be made prior to conditional offers, notifications related to conducting a background check, what employers can and cannot consider in a background report, the adverse action process, and more. The highlights are summarized below:

Additional requirements for job postings and advertisements:

• Employers must state in their job postings that "qualified Applicants with arrest or conviction records will be considered for Employment in accordance with the Los Angeles County Fair Chance Ordinance for Employers and the California Fair Chance Act."

• Statements explicitly excluding individuals with criminal histories from consideration are prohibited.
• Employers must identify any laws or regulations restricting hiring individuals with criminal histories for a particular position.
• A comprehensive list of job duties for positions where criminal history may adversely impact employment decisions must be provided.

Conditional offers of employment:

• If conditional offers of employment are contingent upon a criminal history check, employers must justify this requirement in writing within the conditional offer itself.
• Employers are prohibited from asking applicants to disclose their criminal history information.

Individualized assessment process for pre-adverse action:

• Employers must conduct and document an initial individualized assessment before denying a position or rescinding a conditional offer based on an applicant's criminal history.
• Assessments for adverse action must determine if the candidate’s criminal history has a direct, adverse, and negative bearing on the applicant's ability to perform job-related duties.

Preliminary notice of adverse action:

• Employers must give the applicant or employee a preliminary notice if they intend to take adverse employment action based on criminal history.
• The notice includes details such as the intent to withdraw the conditional offer, explanations of the applicant's right to respond, copies of the initial individualized assessment, notice of disqualifying convictions, and a copy of the criminal background check report.

Response period:

• Applicants must be given five business days to respond to the preliminary adverse action notice.
• Applicants who, within five business days, dispute the accuracy of the background check or request additional time to obtain evidence of rehabilitation shall be entitled to an additional ten business days to respond.

Final decision:

• Employers must consider all information and documents submitted before making a final decision or taking adverse action.
• If disputed, a second individualized assessment may be conducted. If adverse employment action is finalized, the applicant must be notified in writing within 30 days of responding to the preliminary notice.

Record retention:

• Employers are required to retain all related records for at least four years.

To find out more details on LA’s 2024 Fair Chance Ordinance, take a closer look here.

Which employers are subject to the 2024 ordinance?

Effective September 3, 2024, the ordinance impacts employers who are located or do business in Los Angeles County and employ five or more employees. Employers in violation of the ordinance may be subject to a fine of up to $5,000 for the initial violation, $10,000 for a second infraction, and $20,000 for the third and any further violations. The law may also impact employers hiring remote employees and candidates who previously lived in LA with past criminal records.

Fair Chance AND Ban the Box laws are part of a growing movement sweeping across the nation in hopes of bringing equal opportunity to individuals with past conviction records. However, these laws can also significantly impact recruiting practices, introducing specific language requirements for job postings, and hiring practices. As time goes on, requirements and regulations for the 2024 LA County ordinance and other Clean Slate laws may evolve. Employers should meet with their legal counsel to ensure full compliance with Clean Slate laws and regulations.