Los Angeles County Imposes Fair Chance Ordinance

Starting September 3, 2024, employers with five or more employees doing business in unincorporated areas of Los Angeles County will be required to comply with the Fair Chance Ordinance (the “Ordinance”).  The Ordinance will impact job postings as well as how employers conduct and handle employee and job applicant background checks.  With respect to job postings, covered employers must state in 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.”  Also, covered employers cannot ask about criminal history before extending a conditional offer of employment, which must include certain statements required by the Ordinance.  Further, covered employers must operate within the guardrails set forth in the Ordinance as to how background checks must be conducted and handled, including its detailed process on pre-adverse action notices.  The Ordinance also carries a posting requirement.

Violations of the Ordinance carry potential penalties of up to $5,000 for a first violation, $10,000 for a second violation, and $20,000 for the third and subsequent violations.  Applicants and employees also have the option of filing a civil action in court.  Employers should, therefore, consult with their labor counsel to ascertain to what extent they are covered by the Ordinance and how to ensure compliance.