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Industry News

BIG CHANGES Coming for CA Employers

California often leads the nation in trends and enforcement, so employers across the country may want to take heed. On October 18, 2017, California Governor Jerry Brown signed CA AB 1008 into law. As of January 1, 2018, California will officially “Ban the Box” statewide. However, this new law does not supersede the local ordinances (i.e. Los Angeles and San Francisco). This new law was created in California because roughly seven million Californians or nearly one in three adults, have an arrest or conviction record that could significantly undermine their efforts to obtain gainful employment.

CA AB 1008 applies to both public and private employers with five or more employees. Under the new law, employers are prohibited from inquiring into an applicant’s conviction history until after a conditional offer of employment is made. In addition, if an employer intends to deny employment based on the applicant’s conviction history, (after conducting a lawful, post offer criminal background check), the employer MUST go through the “Fair Chance Process” before employment is denied. The following link will provide you with additional details about the bill and “The Fair Chance Process” or contact Americhek for a Complimentary Power Point that outlines the requirements.

Governor Jerry Brown also signed CA AB 168 into law which effectively bans employers from asking job applicants about salary history. This bill will also go into effect on January 1, 2018. CA AB 168 was written with the intent of ending wage inequality. This bill prohibits all employers, including the Legislature, the state, and local governments, from asking about or relying on prior salary information when deciding whether to offer a job and in deciding how much to pay. It does not penalize employers when an applicant “voluntarily and without prompting” discloses salary history information BUT employers may not rely on prior salary alone to justify any disparity in pay. It also requires employers to provide, upon reasonable request, the pay scale for a position when an applicant is applying for employment. The following link will provide you with additional details or you are welcome to contact Americhek for your complimentary Power Point that outlines the requirements.

Americhek strongly urges you to always contact your employment attorney for legal advice and direction. We understand that legal compliance is part of any background screening program and we will continue to share new and existing legislation that will assist you in maintaining FCRA compliance.