California Employer Lawyer Explains the Challenges of Los Angeles’ Fair Chance Ordinance
As a California employer lawyer, I often encounter business owners struggling to navigate the complex legal landscape surrounding hiring practices. One local law that has been causing significant headaches for employers in the LA area is the Los Angeles County Fair Chance Ordinance (FCO). While the ordinance aims to promote second-chance employment opportunities for individuals with criminal records, the reality is far more complicated and, frankly, frustrating for employers.
Today, I want to break down why the FCO, despite its good intentions, can feel like a bureaucratic nightmare that ultimately stifles small businesses and creates more risk than reward. If you are an employer in Los Angeles—or even managing remote employees based there—understanding the nuances of this law is critical to avoid costly fines and legal pitfalls.
Table of Contents
🤔 What is the Los Angeles Fair Chance Ordinance?
The Los Angeles County Fair Chance Ordinance is a local law designed to remove barriers to employment for people with criminal records. It is part of a broader movement often referred to as “Ban the Box,” which seeks to prevent employers from asking about criminal history too early in the hiring process. The goal is to give individuals with criminal backgrounds a fair shot at employment without facing immediate disqualification based solely on their past.
Under the FCO:
- Employers cannot ask about criminal history on job applications.
- Background checks cannot be conducted until after a conditional job offer has been made.
- Employers must perform a fair, individualized assessment before taking any adverse action based on criminal history.
These rules might sound reasonable at first glance. However, the devil is in the details, and the implementation of this ordinance has introduced significant challenges for employers.
⚠️ Why the Fair Chance Ordinance is a Bureaucratic Nightmare for Employers
From my experience as a California employer lawyer, the FCO creates a maze of red tape that can overwhelm small businesses. Here are some of the most problematic aspects:
1. Overwhelming Job Posting Requirements
The ordinance requires employers to list every possible reason a criminal history might be relevant to the job in the job posting. This sounds simple until you realize how impossible this actually is. Criminal conduct can cover an enormous range of offenses, from minor misdemeanors to serious felonies. How can any business realistically list every possible disqualifying offense?
Imagine trying to include every criminal code section that could be relevant. Not only is this impractical, but it also opens the door to confusion and potential legal challenges if an employer inadvertently omits something.
2. The Risk of Costly Fines
The penalties for non-compliance are severe. Employers who get anything wrong can face fines up to $20,000. For small businesses operating on tight margins, this kind of financial risk is daunting. It makes many employers hesitant to conduct background checks at all, fearing that any mistake could be financially devastating.
3. The “Good Cause” Requirement to Conduct Background Checks
One of the most baffling elements of the FCO is the requirement for employers to demonstrate “good cause” before conducting a background check. In other words, you have to justify why you need to know someone’s criminal history before you even look into it.
For a business owner, this can feel like a violation of basic hiring rights. Determining who will be a trustworthy, reliable employee is fundamental to running a business, yet under the FCO, you have to jump through hoops to prove it.
4. Presumption of Retaliation After Termination
If you conduct a background check and later terminate the employee, there’s a 90-day presumption of retaliation. This means the employee could claim retaliation based on the background check, putting the employer at risk of costly litigation.
This provision essentially discourages employers from conducting background checks, as it places an unfair burden and risk on them even when acting in good faith.
📉 How the Fair Chance Ordinance Harms Small Businesses and Job Creation
While the FCO is marketed as a law that promotes second-chance employment, the reality is that it may have the opposite effect. The complex regulations and high risks involved can discourage employers from hiring altogether, especially small businesses that lack dedicated HR and legal teams.
Small businesses are the backbone of the LA economy, yet this ordinance seems to ignore their needs. Instead of facilitating opportunity, it piles on regulation and risk, making it harder for new businesses to thrive and for existing businesses to grow their workforce.
Many employers might simply decide it’s easier not to hire anyone with a criminal record, or worse, avoid hiring altogether to sidestep legal exposure. This results in fewer jobs and less economic opportunity—the exact opposite of what the law intends.
🛠️ Practical Tips for Employers Navigating the Fair Chance Ordinance
Despite the challenges, employers must comply with the FCO to avoid fines and legal trouble. Here are some practical steps to help you stay on the right side of the law:
- Review and Update Job Postings: Make sure your job listings comply with the FCO’s requirements. While it’s impossible to list every criminal conduct that might be relevant, clearly state your company’s policies and the types of offenses that could impact the role.
- Delay Background Checks: Do not ask about criminal history on applications or during early interviews. Wait until after you extend a conditional job offer to request a background check.
- Conduct Individualized Assessments: If a background check reveals a criminal record, assess the relevance to the job carefully. Consider factors like the nature of the offense, the time elapsed, and the duties of the position before making a final decision.
- Document Everything: Keep thorough records of your hiring process, assessments, and decisions. Documentation can protect you in case of disputes or claims of retaliation.
- Consult a California Employer Lawyer: Given the complexity and evolving nature of employment laws, seek legal advice to build compliant hiring processes and minimize risk.
📚 Understanding the Bigger Picture: Why Does LA Enforce Such Stringent Laws?
It’s important to understand the context behind the FCO. Los Angeles and California more broadly have a strong policy focus on protecting workers’ rights and promoting equity. The Fair Chance Ordinance is part of a larger movement aimed at reducing systemic barriers for people with criminal histories.
However, this progressive intent can sometimes clash with business realities. The law seems designed to discourage background checks altogether, shifting all responsibility—and risk—onto employers. Whether intentional or not, this approach creates a no-win scenario for many businesses.
LA’s regulatory environment often feels hostile to small business owners, who must navigate a labyrinth of local, state, and federal laws. The FCO exemplifies this trend by prioritizing social goals without adequately considering the operational impact on employers.
💬 Frequently Asked Questions (FAQ) About the Fair Chance Ordinance
Q1: Can I ask about criminal history during the interview?
No. Under the Fair Chance Ordinance, employers cannot inquire about criminal history on job applications or during interviews. You must wait until after extending a conditional offer of employment.
Q2: What does “good cause” mean when conducting a background check?
“Good cause” means you must have a legitimate business reason related to the job duties to justify running a background check. This requirement is intended to prevent unnecessary or discriminatory checks.
Q3: What happens if I terminate an employee after conducting a background check?
There is a 90-day presumption of retaliation, meaning the employee could claim that the termination was retaliatory based on the background check. This increases the risk of legal claims against the employer.
Q4: What are the penalties for violating the FCO?
Fines can be as high as $20,000 for non-compliance. Additionally, employers risk lawsuits and costly legal disputes.
Q5: Does the FCO apply to remote employees working for LA-based companies?
Yes. If you are hiring employees in Los Angeles or remotely managing workers based in LA, the ordinance applies, and you must follow its requirements.
🔍 Final Thoughts from a California Employer Lawyer
As a California employer lawyer, I advise employers to approach the Fair Chance Ordinance with caution and a clear understanding of its demands. While it aims to give people a second chance, the law’s complexity and risk create significant challenges for businesses.
If you’re an employer in Los Angeles, you have to build your hiring process with compliance from the start—not as an afterthought. Failing to do so can expose you to fines, lawsuits, and a hiring environment that feels more like a minefield than an opportunity.
Remember, the law is evolving, and enforcement is active. Don’t wait until you’re facing a legal problem to get advice. Consult with a knowledgeable California employer lawyer who can help you navigate these tricky waters and protect your business.
Until next time, be productive and stay informed.
Free 15-Minute Consult
Give us a CALL
Click me
California Employer Lawyer Explains the Challenges of Los Angeles’ Fair Chance Ordinance
As a California employer lawyer, I often encounter business owners struggling to navigate the complex legal landscape surrounding hiring practices. One local law that has been causing significant headaches for employers in the LA area is the Los Angeles County Fair Chance Ordinance (FCO). While the ordinance aims to promote second-chance employment opportunities for individuals with criminal records, the reality is far more complicated and, frankly, frustrating for employers.
Today, I want to break down why the FCO, despite its good intentions, can feel like a bureaucratic nightmare that ultimately stifles small businesses and creates more risk than reward. If you are an employer in Los Angeles—or even managing remote employees based there—understanding the nuances of this law is critical to avoid costly fines and legal pitfalls.
Table of Contents
🤔 What is the Los Angeles Fair Chance Ordinance?
The Los Angeles County Fair Chance Ordinance is a local law designed to remove barriers to employment for people with criminal records. It is part of a broader movement often referred to as “Ban the Box,” which seeks to prevent employers from asking about criminal history too early in the hiring process. The goal is to give individuals with criminal backgrounds a fair shot at employment without facing immediate disqualification based solely on their past.
Under the FCO:
These rules might sound reasonable at first glance. However, the devil is in the details, and the implementation of this ordinance has introduced significant challenges for employers.
⚠️ Why the Fair Chance Ordinance is a Bureaucratic Nightmare for Employers
From my experience as a California employer lawyer, the FCO creates a maze of red tape that can overwhelm small businesses. Here are some of the most problematic aspects:
1. Overwhelming Job Posting Requirements
The ordinance requires employers to list every possible reason a criminal history might be relevant to the job in the job posting. This sounds simple until you realize how impossible this actually is. Criminal conduct can cover an enormous range of offenses, from minor misdemeanors to serious felonies. How can any business realistically list every possible disqualifying offense?
Imagine trying to include every criminal code section that could be relevant. Not only is this impractical, but it also opens the door to confusion and potential legal challenges if an employer inadvertently omits something.
2. The Risk of Costly Fines
The penalties for non-compliance are severe. Employers who get anything wrong can face fines up to $20,000. For small businesses operating on tight margins, this kind of financial risk is daunting. It makes many employers hesitant to conduct background checks at all, fearing that any mistake could be financially devastating.
3. The “Good Cause” Requirement to Conduct Background Checks
One of the most baffling elements of the FCO is the requirement for employers to demonstrate “good cause” before conducting a background check. In other words, you have to justify why you need to know someone’s criminal history before you even look into it.
For a business owner, this can feel like a violation of basic hiring rights. Determining who will be a trustworthy, reliable employee is fundamental to running a business, yet under the FCO, you have to jump through hoops to prove it.
4. Presumption of Retaliation After Termination
If you conduct a background check and later terminate the employee, there’s a 90-day presumption of retaliation. This means the employee could claim retaliation based on the background check, putting the employer at risk of costly litigation.
This provision essentially discourages employers from conducting background checks, as it places an unfair burden and risk on them even when acting in good faith.
📉 How the Fair Chance Ordinance Harms Small Businesses and Job Creation
While the FCO is marketed as a law that promotes second-chance employment, the reality is that it may have the opposite effect. The complex regulations and high risks involved can discourage employers from hiring altogether, especially small businesses that lack dedicated HR and legal teams.
Small businesses are the backbone of the LA economy, yet this ordinance seems to ignore their needs. Instead of facilitating opportunity, it piles on regulation and risk, making it harder for new businesses to thrive and for existing businesses to grow their workforce.
Many employers might simply decide it’s easier not to hire anyone with a criminal record, or worse, avoid hiring altogether to sidestep legal exposure. This results in fewer jobs and less economic opportunity—the exact opposite of what the law intends.
🛠️ Practical Tips for Employers Navigating the Fair Chance Ordinance
Despite the challenges, employers must comply with the FCO to avoid fines and legal trouble. Here are some practical steps to help you stay on the right side of the law:
📚 Understanding the Bigger Picture: Why Does LA Enforce Such Stringent Laws?
It’s important to understand the context behind the FCO. Los Angeles and California more broadly have a strong policy focus on protecting workers’ rights and promoting equity. The Fair Chance Ordinance is part of a larger movement aimed at reducing systemic barriers for people with criminal histories.
However, this progressive intent can sometimes clash with business realities. The law seems designed to discourage background checks altogether, shifting all responsibility—and risk—onto employers. Whether intentional or not, this approach creates a no-win scenario for many businesses.
LA’s regulatory environment often feels hostile to small business owners, who must navigate a labyrinth of local, state, and federal laws. The FCO exemplifies this trend by prioritizing social goals without adequately considering the operational impact on employers.
💬 Frequently Asked Questions (FAQ) About the Fair Chance Ordinance
Q1: Can I ask about criminal history during the interview?
No. Under the Fair Chance Ordinance, employers cannot inquire about criminal history on job applications or during interviews. You must wait until after extending a conditional offer of employment.
Q2: What does “good cause” mean when conducting a background check?
“Good cause” means you must have a legitimate business reason related to the job duties to justify running a background check. This requirement is intended to prevent unnecessary or discriminatory checks.
Q3: What happens if I terminate an employee after conducting a background check?
There is a 90-day presumption of retaliation, meaning the employee could claim that the termination was retaliatory based on the background check. This increases the risk of legal claims against the employer.
Q4: What are the penalties for violating the FCO?
Fines can be as high as $20,000 for non-compliance. Additionally, employers risk lawsuits and costly legal disputes.
Q5: Does the FCO apply to remote employees working for LA-based companies?
Yes. If you are hiring employees in Los Angeles or remotely managing workers based in LA, the ordinance applies, and you must follow its requirements.
🔍 Final Thoughts from a California Employer Lawyer
As a California employer lawyer, I advise employers to approach the Fair Chance Ordinance with caution and a clear understanding of its demands. While it aims to give people a second chance, the law’s complexity and risk create significant challenges for businesses.
If you’re an employer in Los Angeles, you have to build your hiring process with compliance from the start—not as an afterthought. Failing to do so can expose you to fines, lawsuits, and a hiring environment that feels more like a minefield than an opportunity.
Remember, the law is evolving, and enforcement is active. Don’t wait until you’re facing a legal problem to get advice. Consult with a knowledgeable California employer lawyer who can help you navigate these tricky waters and protect your business.
Until next time, be productive and stay informed.
Free 15-Minute Consult
Give us a CALL
Click me
Top Wrongful Termination Lawyer in Beverly Hills CA specializing in Employment Law