California Civil Rights Department Announces $100k Settlement with Employer

On April 3, the California Civil Rights Department (CRD) announced a $100,000 settlement with a nationwide trucking company over allegations the company violated the state’s Fair Chance Act.

The CRD’s investigation began following receipt of a job applicant’s complaint that they were rejected based on their criminal history information. As alleged, the applicant received a conditional offer for a senior leadership position but had that offer withdrawn without an individualized assessment being performed. The complaint further alleged the employer failed to consider factors such as the nature and gravity of the offense, time passed since the offense occurred, and how the offense related to the position being sought.

In addition to the monetary settlement, the employer agreed to take the following actions:

• Provide training on the Fair Chance Act to all employees involved in the hiring process or other employment decisions. The training must be for at least two hours on an annual basis. Copies of the training materials must be provided to the CRD for review.
• Conduct a review of the company’s policies to ensure they comply with the Fair Chance Act, including by making sure convictions older than seven years are not considered.
• Report any changes in policies to CRD within 45 days.

It’s important to note the employer did not admit liability as part of this settlement.

It is clear the CRD is actively pursuing enforcement of the Fair Chance Act’s requirements. We recommend employers hiring in California review the Fair Chance Act, along with their policies, procedures and employee training, in conjunction with qualified legal counsel.