An Employer’s Guide to California Background Checks

Conducting background checks on potential employees has become integral to the hiring process. Very few companies would consider taking on a new recruit without at least some degree of screening. Across the U.S., laws relating to background checks vary wildly, and California has some of the strictest laws designed to protect job applicants from discrimination and privacy violations. 

If you’re hiring in California, it’s vital that you comply with these laws. Otherwise, penalties can be severe. We’ve compiled this guide to give you a comprehensive overview of California background checks, covering what they include, how far back they go, processing times, key legal requirements, and frequently asked questions.

What Is a California Background Check?

Whether in California or anywhere else, background checks involve a screening process to verify a job applicant’s history and credentials. They act as a comprehensive review that can support—or reject—an application based on the findings. At their core, employment background checks ensure that a candidate meets the qualifications they have claimed, confirms education, and can also identify potential risks that could impact workplace safety and compliance. 

Background checks are now a standard part of the hiring process, though their extent varies between industries and positions. When employees handle sensitive information like finances or work with vulnerable populations, companies may ask for more wide-ranging checks than other positions. However, California law imposes strict regulations on how and when background checks can be performed to protect job applicants’ privacy and prevent discrimination. 

What Does a Background Check Show in California?

California background checks vary depending on the position and what needs to be assessed. Here are some of the most common types:

• Criminal Records: Criminal charges are standard in most background checks and may include felony and misdemeanor convictions, pending charges, and incarceration history. But things get a little complicated in California. Under the state’s “ban-the-box” law, employers cannot inquire about criminal history until after making a conditional job offer.
• Employment History: Confirming a potential employee has the experience they claim is vital to any background check. This can verify past job roles, dates of employment, and reasons for leaving.
• Education Verification: Employers usually want to confirm that an accolade from Havard or Yale is genuine and that you have the necessary academic qualifications for the position.
• Professional Licenses: Certain industries require specific licenses to operate in, and for a good reason. You wouldn’t want a doctor without a medical license or a lawyer who hadn’t passed the bar. A background check can verify that an applicant holds valid credentials and is in good standing with licensing boards.
• Credit Reports: Credit checks are typically only required for positions like managerial roles, law enforcement, and jobs involving financial responsibility. California’s stringent laws mandate that employers may only ask for credit reports relating to a certain group of positions and must comply with the California Consumer Credit Reporting Agencies Act when conducting these screenings.
• Driving Records: For positions that require driving responsibilities, employers can review an applicant’s motor vehicle records, including license status, violations, and accident history.
• Civil Court Records: In some instances, employers may review civil litigation history, including lawsuits, liens, or judgments. However, these records must be relevant to the job in question.
• Sex Offender Registry: Employers hiring for positions involving vulnerable populations (e.g., schools, healthcare, childcare) may check the California Sex Offender Registry, subject to legal limitations.
• Reference Checks: Many employers contact former supervisors, colleagues, or professional references to gain insight into an applicant’s work ethic, performance, and reliability.

How Far Back Can a Background Check Go in California?

Some states allow employers to dig endlessly into an applicant’s past—but not California. The state enforces a strict 7-year limit on most pre-employment background checks, meaning anything that happened before that period is off-limits for background screenings.

Under California Civil Code 1785.13, consumer reporting agencies cannot disclose the following records if they’re more than 7 years old:

• Criminal convictions
• Civil suits and judgments
• Tax liens
• Accounts in collection
• Any other negative credit-related information

However, there are several key exceptions. Although the 7-year limit applies to most standard background checks, certain positions and industries allow employers to review records beyond seven years.

• Salaries Over $125,000: If the job has an annual salary of $125,000 or more, an employer can access convictions older than seven years under federal Fair Credit Reporting Act (FCRA) rules.
• Law Enforcement & Government Jobs: Applicants for law enforcement, government roles, and positions requiring security clearances are subject to more extensive background checks, sometimes covering their entire lifetime.
• Financial Industry Jobs: Employers hiring for financial services, banking, or insurance may be permitted to access older financial and criminal records to assess risk.
• Healthcare & Childcare Positions: Jobs that involve working with vulnerable populations (e.g., children, elderly individuals, or patients) may allow for background checks beyond seven years under specific state and federal laws.

To make things even more complicated, even when the 7-year rule applies, it might not always be watertight. Here are a few ways they could still influence hiring decisions. 

• Convictions That Have Been Reinvestigated: Even if the conviction was outside the 7-year window, a person who re-enters the court system due to a parole violation, appeal, or related case may reappear in background checks.
• Direct Employer Inquiries: This can be tricky, but, in theory, an employer may be able to ask a candidate about older convictions—though California’s “ban-the-box” law restricts when and how these questions can be asked.
• Records Available in Public Databases: In some cases, court records that are publicly accessible may extend back beyond 7 years, meaning an employer could legally retrieve this information themselves.

How Long Does a California Background Check Take?

On average, background checks in California take between 2 and 10 business days, but this depends on the screening type and extent. An extensive check involving manual searches or multiple verifications may take up to 2 weeks. To get things done as quickly as possible, it’s important to work with reliable background checkers while also ensuring that all candidate information is accurate and up-to-date. 

Here are some rough estimates for each screening stage. 

Criminal Background Checks – 1 to 7 days

• Many criminal record searches at the state or federal level return results within 24 to 48 hours.
• County-level criminal checks can take 5 to 7 business days, especially if the court requires manual record searches.

Employment Verification – 3 to 5 business days

• Confirming past employment depends on the responsiveness of previous employers.
• Delays can occur if companies no longer exist or have incomplete records.

Education Verification – 3 to 7 business days

• Colleges and universities often process requests within a few days, but some take up to a week.
• Schools with outdated or incomplete record systems may cause additional delays.

Professional License Verification – 1 to 3 business days

• Most licensing boards provide fast verification through online databases.
• Delays may occur if manual confirmation is required.

Credit Checks – Instant to 2 days

• Credit history reports are typically available within minutes if conducted through a consumer reporting agency.

Driving Records (DMV Checks) – 1 to 7 business days

• DMV records are usually available within 1 to 2 days, but processing times can increase based on state workload.

Recent Delays in Background Checks

California has experienced delays with background checks since a 2021 court ruling, ‘All of Us or None of Us vs Hamrick.’ This deemed that the Riverside County’s Superior Court website, where employers and background screening providers can search for criminal records by inputting birth dates and driver’s license numbers, was in violation of a state ruling that information of this kind should be excluded from indexes available through electronic means. Instead, background checkers are now required to visit courthouses where the physical file is kept—making final checks an incredibly time-consuming job.

This has led to a significant backlog in cases, particularly in LA County, where roughly 100,000 background checks are requested monthly. The problem is considerably worse for those with common names, who could face months, possibly years, before getting a background check. Many are now arguing that this situation has become untenable and that the state must take action to relax background check laws, but there have been no changes so far. 

California Background Check Laws & Requirements

California is one state where you must tread very carefully regarding background checks. The laws and requirements of the states are some of the most stringent in the United States. Employers must adhere to these state and federal laws to ensure compliance and avoid costly legal penalties. Here are some of California’s key background check laws and how to stay on the right side. 

Ban-the-Box Law (California Fair Chance Act)

The Fair Chance Act, commonly known as Ban-the-Box, prohibits employers from asking about criminal history on job applications or during the early hiring process. Employers can only conduct a criminal background check after making a conditional job offer. Here are some of the key points:

• Potential employers cannot include questions about criminal history on job applications.
• An individualized assessment must be conducted if a background check reveals a conviction. This includes evaluating:
  • The nature and severity of the offense.
  • How much time has passed since the conviction.
  • Whether the offense is relevant to the job.
• If an employer decides to rescind a job offer based on a criminal record, they must:
  • Provide the applicant with a pre-adverse action notice, including a copy of the background report.
  • Give the applicant at least 5 business days to respond.
  • Consider any additional information the applicant provides before making a final decision.

Failing to comply with Ban-the-Box laws can result in legal action, fines, and discrimination lawsuits.

The Investigative Consumer Reporting Agencies Act (ICRAA)

The ICRAA governs how third-party background check agencies (Investigative Consumer Reporting Agencies) collect, report, and distribute information about job applicants. Here are some of the key points:

• Employers need to provide a clear written disclosure before conducting a background check.
• They must obtain written consent from the applicant before proceeding.
• Employers must inform applicants of their right to request a copy of their background report.
• If negative information leads to an adverse hiring decision, employers must provide an explanation and allow the candidate to dispute inaccuracies.

Failure to comply with ICRAA can result in significant fines and lawsuits, as many job applicants have successfully sued employers for violating disclosure and consent rules.

The California Consumer Privacy Act (CCPA)

The California Consumer Privacy Act (CCPA) enhances privacy protections for job applicants by regulating how employers collect, store, and use personal information obtained through background checks. Here are some of the key points:

• Employers must disclose how they collect and use applicant data.
• Job applicants have the right to access their personal information and request corrections or deletions.
• Background check data cannot be sold or shared without proper authorization.

Failure to comply with CCPA can result in lawsuits and penalties, especially if sensitive data is misused or leaked.

Credit Check Restrictions (AB 22)

Under Assembly Bill 22 (AB 22), most California employers can’t use credit reports in hiring decisions unless the position meets specific criteria. Jobs that allow credit checks are:

• Managerial roles (defined as positions involving independent decision-making).
• Law enforcement or government jobs requiring financial responsibility.
• Jobs involving access to sensitive financial data (e.g., accountants, finance officers).
• Roles requiring a credit history review by law (e.g., mortgage loan officers).

If an employer conducts a permissible credit check, they must provide a written disclosure and obtain explicit consent from the applicant.

Arrest vs. Conviction Reporting Laws

California law prohibits employers from considering non-conviction arrests when making hiring decisions, but there are some key distinctions:

• Arrests without convictions cannot be used against an applicant.
• Pending charges may be reviewed, but employers must ensure they are job-relevant.
• Dismissed or expunged convictions should not appear on most background checks.

Employers must ensure that background check providers do not include non-conviction records in screening reports.

The Role of the Fair Credit Reporting Act (FCRA) in California

The FCRA is a federal law that applies to all background checks conducted by third-party agencies. California employers must comply with state laws and the FCRA when using consumer reports for hiring. Responsibilities under the FCRC include:

• Providing clear and conspicuous written disclosure before obtaining a background check.
• Obtaining written authorization from the job applicant.
• If an adverse hiring decision is made, provide:
  • A pre-adverse action notice with a copy of the report.
  • A summary of the applicant’s rights under the FCRA.
  • A reasonable opportunity to dispute errors before finalizing the decision.

Failure to comply with the FCRA can lead to lawsuits, fines, and federal penalties.

Frequently Asked Questions

What Is the California 7-Year Rule?

The 7-Year Rule restricts background checks from reporting criminal records, bankruptcies, and other negative financial information older than seven years. Exceptions exist for positions paying over $125,000 annually or government, finance, and law enforcement roles.

Final Thoughts

Adhering to California’s strict background check laws can seem like a headache, but it’s vital to doing business in the state. Employers must balance various regulations, including the 7-year rule, comply with Ban-the-Box laws, protect applicant privacy, and conduct individualized assessments where needed to avoid legal consequences, discrimination claims, and unnecessary hiring delays.

Failing to adhere to these laws can easily land companies in hot water, leading to lawsuits, financial penalties, and damage to an organization’s reputation—which is why working with the best background check provider always pays. ScoutLogic provides fast and reliable background screenings that comply with all of California’s hiring laws, leaving you free to make the best hiring decisions safely, knowing that everything is in order and every step aligns with the state regulations.

David Garcia

David Garcia, co-founder and CEO of Scout Logic, is an industry leader in the bulk background check world. With his strategic acumen and expertise in the HR sphere, specifically in hiring, recruiting, legal compliance, background checks, and resume screening, he’s an invaluable asset and consultant.

David's counsel extends across the boards of ScoutLogic, YipitData, and Supplier.io, drawing from his impactful stints on the boards of Infutor and Avetta. With an extensive 25-year journey, he champions unparalleled B2B commercial leadership within data & analytics, significantly shaping the HR landscape.