Employers must stay ahead of evolving employment laws to ensure compliance and adaptability. One of the latest regulations impacting employers is Los Angeles County’s Fair Chance Ordinance (FCO). The ordinance, which took effect on September 3rd, introduces strict rules for criminal background checks that are more stringent than those at the state or city level. Compliance with these rules is essential, as failure to do so can result in significant penalties.
What Is The Fair Chance Ordinance?
The FCO applies to employers located in or doing business in the unincorporated areas of Los Angeles County. If your business employs five or more workers, including temporary staff, contractors, or freelancers, and operates within these areas, you are subject to the FCO’s rules. This ordinance aims to provide opportunities for individuals with criminal histories by regulating how employers handle job postings, offer letters, and hiring procedures.
Key Requirements For Employers
Employers subject to the FCO must make several changes to their hiring and employment practices, including:
- Job postings: Employers cannot discourage candidates with a criminal history from applying. Instead, they must explicitly state that applicants with arrest or conviction records will be considered, in compliance with both the FCO and California’s Fair Chance Act (FCA). Additionally, employers must list any specific laws or regulations that may prevent them from hiring individuals with a criminal background.
- Offer letters: Employers are prohibited from asking about criminal histories until a conditional offer of employment has been made. If a background check is required, the offer letter must outline all the background checks that will be conducted, such as education, employment history, or social media activity.
- Consideration of criminal history: The FCO prohibits employers from inquiring about specific types of criminal records, including arrests not followed by conviction, sealed or expunged convictions, and convictions that are more than seven years old. Any adverse action based on criminal history must involve an individualized assessment and proper notification to the applicant.
- Adverse actions: If you intend to take an adverse action based on criminal history, you must provide the applicant with a written assessment of how their criminal record relates to the job. You must also give the candidate time to respond to this preliminary decision before finalizing any adverse action.
Penalties For Non-Compliance
The consequences for failing to comply with the FCO are severe. Fines range from $5,000 for the first violation to $20,000 for subsequent violations, and these penalties are assessed per violation. Beyond fines, the county’s Department of Consumer and Business Affairs may recommend the suspension or revocation of your business license. Additionally, employees can file complaints with both the county and the California Civil Rights Department if they believe their rights have been violated.
How GMS Can Help You Navigate Compliance
Navigating the complexities of the FCO can be overwhelming, especially when you consider that regulations vary across California’s different regions. Fortunately, GMS is here to support your business. Our HR and compliance experts, particularly those familiar with the Los Angeles area, are well-versed in local, state, and federal laws. We offer comprehensive services to ensure your hiring processes and policies fully comply with the FCO and other relevant regulations.
Here’s how GMS can help:
- Policy reviews and updates: We can audit your current hiring practices, job postings, offer letters, and record retention policies to ensure they meet FCO requirements.
- Custom compliance solutions: Whether you need to update your background check procedures or implement proper documentation for individualized assessments, our experts can help you create tailored solutions that align with the FCO’s rules.
- Training and education: GMS offers training programs for your HR team to stay informed about the latest legal requirements, including how to handle criminal background checks under the FCO and FCA.
- Ongoing support: As new laws and regulations are introduced, GMS will keep you updated and ensure your policies are always current and compliant.
Stay Ahead Of Changing Regulations With GMS
Los Angeles County’s Fair Chance Ordinance is just one example of how rapidly employment laws can change. To avoid costly fines and protect your business, it’s essential to stay proactive. At GMS, we provide the expertise and resources needed to help businesses comply with complex regulations, so you can focus on what matters most; running your company. Contact our team today to learn more about how we can assist you!