Navigating ‘Ban the Box’ Laws: What Employers Need to Know

A pre-employment background check can be the deciding factor in whether a job offer becomes official.
For California employers, that process has changed significantly under “Ban the Box” rules, especially the Fair Chance Act.
The goal is to give every applicant — even those with past criminal records — a fair opportunity to compete. Criminal history background checks are heavily regulated in most states and cities, ensuring fairness and compliance with local laws.

Why ‘Ban the Box’ Changed Hiring in California

Years ago, the application process for most jobs included a checkbox asking about criminal history.
Many employers rejected applicants the moment they checked “yes,” without considering their skills or rehabilitation.
This left qualified people shut out, regardless of how long it had been since the offense or how unrelated it was to the job.

California’s Fair Chance Act now prohibits these early inquiries for companies with five or more employees.
Under this law, criminal background checks can only happen after a conditional offer.
The change has reshaped the hiring process and impacted how background screening services operate.

Pre-employment background check procedures are still permitted — but the background screening process is strictly timed and regulated.

The Timeline for Background Checks Under Fair Chance Rules

The law sets a clear sequence for employers:

1. Before the Offer

• No questions about criminal history during the interview process or on forms.
• This applies to both direct questions and indirect ways of seeking that information.

2. Conditional Job Offer

• Only after making a conditional offer can employers run pre-employment screening and background checks.
• At this stage, employers may request a social security number to verify identity and conduct background screenings, such as criminal record checks, but must obtain the applicant’s consent and comply with all legal requirements. Employers must provide written notice to candidates before conducting a background check.
• This can include employment background check services for employment history, education verification, and driving records.

3. Individualized Assessment

• If the background check report reveals past convictions, employers must evaluate:
  • The nature of the offense
  • How much time has passed since sentencing or release
  • Its relevance to the role

4. Pre-Adverse Action

• If deciding not to hire, employers must send a pre-adverse action notice with a copy of the report.
• Applicants get at least five business days to respond and provide evidence or an explanation. Employers must allow candidates to dispute inaccuracies in background check results before making a final hiring decision. In some states, employers are also required to provide rejected applicants with a written copy of the background check results concerning their criminal history.

5. Final Employment Decision

• After considering the applicant’s response, the employer issues the final notice.
• This step must also follow federal laws like the Fair Credit Reporting Act.

What a Pre-Employment Background Shows

A thorough pre-employment background check can include:

• Criminal records (local, state, and federal)
• Employment verification and employment history
• Education verification for degrees earned
• Driving records and motor vehicle records for transportation roles
• Credit history and credit checks for financial positions
• Drug testing results
• Reference checks from past supervisors (employers may contact references or educational institutions directly to authenticate a candidate’s qualifications or employment history). You should inform your referees that they should expect a phone call or email from a representative of the company.
• Public records such as tax liens

These reports help ensure hiring decisions are based on accurate, documented facts. Many employers will check references as part of the hiring process.

Types of Checks: Beyond Criminal Records

Pre-employment background checks are more than just a review of criminal records—they offer a comprehensive look at a candidate’s suitability for a role. In today’s hiring process, many employers rely on background screening to verify employment history, confirm education credentials, and assess credit history, especially for positions of trust. Driving records are also commonly checked for roles involving vehicles or transportation. Additionally, employers often use these checks to assess whether an applicant was truthful during the interview process.

Screening services like First Advantage tailor their offerings to meet the needs of different industries, ensuring that each background check is relevant and thorough. By leveraging these services, employers can make informed hiring decisions, reduce risk, and maintain compliance with the Fair Credit Reporting Act and state and local laws. Whether it’s verifying a candidate’s employment background or conducting education verification, a robust background screening process helps organizations hire smarter and onboard faster, all while supporting a safe and productive workplace.

Credit and Financial Considerations in Hiring

For positions that involve handling money, sensitive data, or financial decision-making, credit checks are a key part of pre-employment background checks. Employers use credit history to gauge a candidate’s financial responsibility and trustworthiness, which can be critical in roles with access to company funds or confidential information.

Before conducting credit checks, employers must obtain written consent from candidates, as required by the Fair Credit Reporting Act. It’s important to use credit checks judiciously and ensure that they are relevant to the job in question, avoiding any discriminatory practices. Background screening services can help employers navigate compliance requirements and interpret credit check results appropriately. By factoring in credit and financial information, employers can make more confident hiring decisions and minimize the risk of financial misconduct within their organization.

Substance Abuse Considerations in the Screening Process

Substance abuse screening is an important part of pre-employment background checks, especially in industries where safety and reliability are paramount. Drug testing can help employers identify candidates who may pose a risk in safety-sensitive roles, such as transportation, healthcare, or manufacturing.

When incorporating drug testing into the background screening process, employers must ensure compliance with relevant laws, including the Americans with Disabilities Act and any applicable state or local regulations. Screening services can provide guidance on best practices for conducting substance abuse checks fairly and consistently. By addressing substance abuse considerations, employers can foster a safer workplace and reduce the likelihood of incidents related to drug or alcohol use.

Driving and Vehicle Record Considerations

For roles that require employees to drive as part of their job duties, reviewing motor vehicle records is a crucial step in the pre-employment background check process. Driving records provide insight into a candidate’s history behind the wheel, including any accidents, traffic violations, or license suspensions.

Employers use this information to assess whether a candidate meets the safety standards required for the position. Background screening services can quickly access motor vehicle records and help employers interpret the results in line with state and local laws. By thoroughly checking driving records, organizations can reduce liability, ensure compliance, and create a safer environment for both employees and the public.

How Far Back Do Most Checks Go?

In California, most employment background checks cover seven years for convictions, in line with state and local laws.
However, certain industries — like healthcare or financial services — may require a longer lookback under federal or local laws.
Public records beyond that time may still appear if they’re relevant and allowed by law.

How to Pass a Pre-Employment Background Check

To pass:

• Review your records ahead of time
• Ensure your employment history and education match your resume
• Disclose required information honestly once legally allowed
• Be prepared to explain any past criminal history
• Fix errors in background check results before the hiring process begins
• Running a background check on yourself will help you determine what potential employers might observe on your records.
• If you discover inaccurate information in your screening, you should report it immediately to the proper authority.
• Reviewing your social media accounts before a screening can help protect your privacy.

Many applicants find that transparency combined with proof of rehabilitation improves hiring decisions.

What Happens if You Fail

If you fail a pre-employment background check, the employer must follow the Fair Credit Reporting Act and Equal Employment Opportunity Commission rules:

• Provide a pre-adverse action notice
• Share the background check report
• Give you time to respond and dispute inaccuracies
• Notify the candidate of the intent to conduct a background check and obtain their consent beforehand.

Failure doesn’t always mean disqualification — some employers hire if the record is unrelated to the role.

Real-Life Example: Opportunity Restored

A candidate for a warehouse supervisor position had excellent work history and leadership skills.
A post-offer employment background check revealed a decade-old non-violent offense.
After an individualized review, the employer’s policies supported moving forward.
The result? The company filled a key role with top talent, reducing turnover and proving the value of second chances.

The Role of Background Screening Services

Background screening service providers help companies stay compliant by:

• Structuring the background screening to fit state and local laws
• Offering background check services for employment verifications, driving records, and criminal records
• Supporting employers with tools to onboard faster and hire smarter
• Ensuring compliance with Title VII of the Civil Rights Act, which prohibits discrimination based on various protected characteristics.

• Structuring the background screening to fit state and local laws
• Offering background check services for employment verifications, driving records, and criminal records
• Supporting employers with tools to onboard faster and hire smarter

Providers like First Advantage use artificial intelligence to flag relevant records while keeping accurate reporting.

Compliance With Federal and Local Rules

Compliance isn’t just about California law.
Federal laws like the Fair Credit Reporting Act and guidance from the Equal Employment Opportunity Commission apply nationwide.
Local laws may add extra requirements for certain cities or counties.

Beyond Criminal History

A comprehensive pre-employment screening might also include:

• Employment background reports for work history
• Credit checks for financial positions
• Education verification for job-required degrees
• Drug testing is where legally permitted
• Driving records for roles involving transportation

These checks give information employers need to make hiring decisions with confidence.

Why Documentation is Key

Keeping records of the background screening and application process protects both employers and applicants.
Important documentation includes:

• Written consent forms
• Background check report copies
• Notes from individualized assessments
• Timelines showing compliance with laws

If challenged, this documentation can prove the process was fair and lawful.

Questions Employers Should Ask

Before running background checks, employers should consider:

• Is this information relevant to the job?
• Are we compliant with the employer’s policies and local laws?
• Have we accounted for federal and state, and local laws?
• Are we using screening services that deliver accurate results?

Industry Trends and Latest Insights

Across industries, more companies are adopting onboard faster approaches that combine compliance with efficiency.
Latest insights show that fair-chance hiring increases access to top talent while maintaining safety and performance.
Services that streamline the time to hire can give organizations a competitive edge.

Final Thoughts

California’s Ban the Box laws focus on skills and potential rather than past mistakes.
Employers can hire smarter, improve retention, and expand access to top talent when they use employment background check results responsibly.
The best hiring process balances compliance, fairness, and the need to protect the organization and its employees.

By combining compliant background screening with thoughtful hiring decisions, employers can meet legal requirements, reduce risk, and find the best fit for the role.