Karina B. Sterman

The Los Angeles County Fair Chance Ordinance, having become effective on September 3, 2024, represents a critical expansion into Los Angeles County of fair hiring practices for individuals with criminal histories. This ordinance applies to employers with five or more employees who operate in unincorporated areas of LA County as well as staffing agencies and entities performing background checks on behalf of such employers.

Under the ordinance, employers may not discourage applications for new employment or internal transfer of employment from individuals with criminal records.  In addition, both internal and external job postings must affirmatively state that applicants with arrest or conviction records will still be considered.  Importantly, employers cannot inquire about criminal history until after a conditional job offer has been extended.

Key Compliance Steps with the Ordinance Include:

1. Conditional Offer Documentation: Clearly state the "good cause" for evaluating criminal history for a specific role.
2. Initial Individualized Assessment: Evaluate whether the criminal history has a direct, adverse impact on the candidate's ability to perform job duties.
3. Candidate Notification: Provide written notice if withdrawing an offer, including assessment details and the background report.
4. Response Time: Allow candidates five days to respond with evidence of inaccuracies or rehabilitation.
5. Final Individualized Assessment: Reevaluate based on the candidate’s response before making a final decision.
6. Documentation Retention: Maintain all records related to the hiring process for at least four years.

Failure to comply can result in direct lawsuits or administrative penalties of up to $20,000 per violation.

Employers should therefore conduct training and revise their hiring protocols to align with this ordinance.