Los Angeles Fair Chance Ordinance (FCO) Compliance Guide

The Los Angeles Fair Chance Ordinance (FCO) marks a significant shift in how employers approach hiring practices. Fairness and equity are at the forefront of the FCO, as it mandates that individuals with past criminal records have equal access to employment opportunities.

Complying with regulations is one thing. However, the FCO helps to ensure that Angelenos have access to an inclusive workplace that values talent and potential, regardless of their background.

Understanding and adhering to the FCO is a legal necessity and a strategic advantage for businesses operating in unincorporated Los Angeles County. Learn more about the FCO below and how Mosey can assist you with business compliance management.

What Is the FCO and Who Does It Impact?

The FCO, implemented on Sept. 3, 2024, builds upon the foundation of the California Fair Chance Act (FCA) while introducing key distinctions tailored to Los Angeles County.

Both the FCO and FCA aim to “ban the box,” limiting when employers can inquire about criminal history. However, the FCO goes further by streamlining the complaint process, enforcing stricter timelines for employers to respond to applicant appeals, and establishing clear penalties for non-compliance.

This localized approach ensures better protection for job seekers and a more efficient enforcement mechanism. If your business has five or more employees and operates within an unincorporated area of Los Angeles County, you are directly impacted by the FCO.

What Are the Pre-Employment Restrictions of the FCO?

The FCO establishes a clear set of rules regarding what you can and cannot do during the pre-employment phase. Before extending a conditional offer of employment, certain actions are strictly off-limits.

Direct and Indirect Inquiries

Inquiries about criminal history are a major no-fly zone during this initial stage. That means you cannot ask about an applicant’s criminal background in job postings, on application forms, or in interviews.

This limitation extends to indirect inquiries, such as asking about gaps in employment history that might allude to incarceration. Instead, the goal should be to find the applicant’s qualifications. From there, you can fill a suitable role.

Blanket Bans

Blanket bans against individuals with criminal records are also prohibited. You cannot have a policy that automatically excludes all applicants with criminal histories. Each individual’s circumstances and the nature of their past offenses must be considered in relation to the specific job requirements.

Seven-Year Lookback Window

Additionally, the FCO implements a seven-year lookback period for most convictions. That means you cannot consider convictions that are older than seven years when making hiring decisions, except in specific cases where the nature of the conviction is directly relevant to the job duties.

Voluntary Disclosure

Finally, you can’t request or push applicants toward voluntarily disclosing their criminal history before extending a conditional offer. That includes asking for self-disclosure on applications or during interviews.

The FCO aims to create a level playing field where all applicants are assessed based on their skills and experience rather than their past. Remember, these restrictions apply to the pre-employment phase only.

Once a conditional offer has been made, you can inquire about criminal history and conduct background checks, provided you follow the FCO’s procedures.

How Conditional Offers and Background Checks Work

Once you’ve identified a promising candidate and are ready to move forward, it’s time to extend a conditional offer of employment. This offer is contingent upon the results of a criminal background check, and it’s crucial to handle this process with transparency and fairness.

The first step is to provide the candidate with a written notice that clearly states the conditional nature of the offer. This notice should explain that the offer depends on the outcome of the background check and specify the types of offenses that might disqualify them from the position.

Next, you must provide a written justification for conducting the background check. This justification should demonstrate a reasonable and job-related need for the information. Simply stating “safety concerns” or “company policy” is insufficient. Be specific about the particular job duties that warrant a criminal background check.

Once the background check is complete, review the report with the candidate before you talk about what’s actually in the report. This approach allows them to review the information themselves and point out any inaccuracies or concerns. Open communication at this stage can help avoid misunderstandings and ensure a fair evaluation process.

What Are Adverse Action Procedures?

If the background check reveals information that leads you to consider rescinding the job offer, there are specific procedures you must follow to comply with the FCO. These procedures are in place to protect the rights of applicants. They also make sure everyone is treated fairly.

First Individual Assessment

The first step is to conduct an initial individualized assessment. Here, a thorough evaluation takes place, where the individual’s criminal history is considered with respect to the nature and gravity of the offense. It also considers the time that’s passed since the offense and what kind of job they’re applying for.

You must also consider any evidence of rehabilitation or mitigating circumstances that the applicant may provide.

Preliminary Notice

After completing the initial assessment, you must provide the applicant with a preliminary notice of adverse action. This notice informs the applicant of your intent to rescind the offer and their right to respond. They have at least five business days to provide additional information or evidence that may change your decision.

Second Individual Assessment

If the applicant responds within the five-day period, you must conduct a second individualized assessment, taking into account any new information they have provided. Only after completing this second assessment can you decide whether to rescind the job offer.

Final Written Notice

If you ultimately decide to rescind the offer, you must issue a final written notice of adverse action to the applicant. This notice should include the reasons for your decision and inform the applicant of their right to file a complaint with the appropriate authorities if they believe their rights have been violated.

What Are the Penalties for Non-Compliance?

Non-compliance with the FCO can have serious consequences for your business. Each violation can result in monetary fines per aggrieved applicant or employee, ranging from $5,000 for the first violation to $20,000 for the third and subsequent violations.

In addition, the Los Angeles County Department of Consumer and Business Affairs may recommend suspending or revoking any county-issued licenses your business holds.

Ensure Compliance With Mosey

The Los Angeles Fair Chance Ordinance (FCO) might seem like a big change, but it’s a change for the better. It gives everyone a fair shot, no matter what their past may look like.

Embrace this new law and create a more inclusive workplace. It’s a great start to opening doors to a wider range of talented individuals.

Worried about compliance? Mosey’s business compliance platform makes it so you don’t have to. We’ll help you better understand and adhere to changing regulations so you can focus on running your business. Schedule a demo of Mosey — let us handle compliance details and help you build the team that your business deserves.

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