California Background Screening Requirements for Employers

California is one of the most highly regulated states when it comes to employment background screening. In addition to following the federal Fair Credit Reporting Act (FCRA), employers in California must comply with state-specific laws that provide job applicants with additional rights and impose stricter obligations on employers.

This guide outlines the key requirements under California law and explains how Personnelgraph helps you stay compliant when screening individuals in California.

Key California Regulations Governing Background Screening

1. California Investigative Consumer Reporting Agencies Act (ICRAA)

The ICRAA adds stricter requirements than the federal FCRA, particularly around disclosures and applicant rights.
What employers must do:

Provide a separate written disclosure stating that an “Investigative Consumer Report” may be obtained.
Disclose the nature and scope of the background check.
Provide the contact information of the Consumer Reporting Agency (Personnelgraph).
Inform the candidate that they may request a copy of the report.

2. California Consumer Privacy Act (CCPA) & CPRA Update

California residents have data privacy rights under the CCPA and the California Privacy Rights Act (CPRA).
Employer obligations include:

Informing applicants of the categories of personal information collected.
Disclosing how that information will be used.
Providing applicants with the right to request deletion or correction of their personal data (subject to exemptions for legal compliance and security).

3. “Ban the Box” and Fair Chance Act

California prohibits employers from asking about criminal history before a conditional offer of employment is made.
After a conditional offer, employers may conduct a criminal background check, but:
They must conduct an individualized assessment before taking adverse action.
Arrests that did not lead to conviction, expunged records, sealed records, and certain marijuana offenses more than two years old cannot be considered.

California Disclosure & Authorization Requirements

Unlike federal law—where a single standalone disclosure is required—California mandates an enhanced notification process.

You must provide:
A standalone FCRA disclosure
A standalone California ICRAA disclosure
A written notice of the applicant’s right to request a copy of their report

Personnelgraph automates this process, ensuring California candidates receive all required forms electronically with compliant language tailored to California statutes.

Applicant’s Right to Receive a Copy

California law grants the applicant the right to automatically receive a copy of the background check if they check a box indicating they want one.

Personnelgraph includes this option in its authorization workflow, allowing applicants to easily make this election.

Adverse Action Under California Law

California’s Fair Chance Act requires an elevated process beyond federal FCRA requirements.

Before denying employment based on a criminal record, employers must:

Provide a Pre-Adverse Action Notice with:

A copy of the background report
A written explanation of the preliminary decision
A notice of the applicant’s right to respond within at least five business days
Conduct an individualized assessment considering:
The nature and gravity of the offense
The time passed since the offense
The nature of the job in question
Provide Final Adverse Action Notice only after the applicant has had the opportunity to respond.
Personnelgraph provides automated workflows and templated notices to meet California’s procedural timelines.

Compliance Made Easy with Personnelgraph

Personnelgraph is fully compliant with California FCRA-equivalent laws, including ICRAA, CCPA, and the Fair Chance Act. Through our authorization system and automated compliance engine, California-specific disclosures, rights notifications, and adverse action workflows are seamlessly built into the hiring process.

California’s background screening regulations are some of the strictest in the country. Non-compliance can expose employers to lawsuits and civil penalties. With Personnelgraph, you can confidently screen California candidates using an automated, compliant process from authorization to court record retrieval.
If your organization operates in California or hires California residents, using a compliant screening platform is not optional, it is a safeguard against legal liability. Personnelgraph ensures every step meets state and federal law.