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Upcoming Changes in California’s Law Regarding Criminal Background Checks

Updated July 31, 2023: The Council’s Modifications to Employment Regulations Regarding Criminal History discussed in this Insight have just been approved by the Office of Administrative Law, and the modified regulations will go into effect on October 1, 2023. Key changes from the initial proposal include:




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Reports About the Wholesale Demise of Claims Against Employers Under the Fair Credit Reporting Act (FCRA) are Premature

  • Lawsuits against employers under the FCRA show no signs of abating in 2023, including nationwide class actions.
  • Employers can fortify efforts to comply with the FCRA by, among other things, reviewing their policies and procedures and providing FCRA compliance training.




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Upcoming Changes in California’s Law Regarding Criminal Background Checks

Rod M. Fliegel and Alice H. Wang discuss the Civil Rights Council of the California Civil Rights Department’s latest revisions to the Fair Employment and Housing Act (FEHA) regulations that govern employers' use and consideration of criminal history in employment decisions.

SHRM Online

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California Seeks to Ban Criminal Background Checks for Most Private Sector Employers

  • Lawmakers in Sacramento seek to outright ban criminal background checks by most private sector employers in California in a bill that would scrap California’s existing fair chance law and replace it with the most restrictive fair chance law in the United States.
  • While the sweeping bill’s future is uncertain, employers should be mindful of the bill’s progress given the drastic impact even a narrower version of the bill would have if enacted into law.




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California bill would ban most criminal background checks

Alice Wang and Rod M. Fliegel say the Fair Chance Act of 2023, a California bill under consideration in the state senate, “would more or less upend the ordinary hiring process for just about every employer in California,” if passed.

HR Dive

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Washington, DC Legislative Roundup

The District of Columbia continues to implement broad employment initiatives, ranging from wage and hour laws to stricter civil penalties. The following is a rundown of key developments for employers to keep an eye on as we move into the next quarter of 2023.

DC Tipped Wage Workers Amendment Act




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Background Checks in Banks, and Conflicts with Ban-the-Box Laws

Philip M. Berkowitz talks about background checks and “Ban-the-Box” laws that financial services organizations must comply with when hiring.

Global Banking & Finance Review

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New Pennsylvania Legislation and Philadelphia Ordinance Amendment Tackle Pardoned Convictions, Expunged Records, and Negligent Hiring Liability

Pennsylvania and Philadelphia recently enacted changes that impact employer criminal background screening.

State Law

Enacted on December 14, 2023, and effective February 12, 2024, Pennsylvania’s House Bill No. 689 amends Pennsylvania law relating to the expungement of certain criminal record information and employer immunity when hiring individuals with expunged records. 




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Continuing Privacy Headache for Ordering Criminal Background Checks in California

Companies that hire employees and engage independent contractors in California should brace themselves for an even greater slowdown in background checks that include criminal record searches in Los Angeles County.1 This will result from the drastic impact of the court of appeal’s 2021 opinion in All of Us or None v.




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County of Los Angeles Enacts a Sweeping Fair Chance Ordinance for the Unincorporated Areas of the County that Far Exceeds Federal and California Law

  • New Los Angeles County ordinance goes into effect September 3, 2024.
  • The ordinance, which has a private right of action, requires significant changes to job postings, conditional offer letters, procedures for adjudicating criminal history, and related notifications for the unincorporated areas of Los Angeles County.
  • The ordinance purports to cover relationships beyond traditional employment relationships, such as contract and freelance work.




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Employers Face June 1, 2024 Deadline to Comply with Lehigh County, Pennsylvania’s New Expansive Anti-Discrimination Ordinance

The Lehigh County Human Relations Ordinance was enacted February 26, 2024, establishing county-specific non-discrimination requirements for employment, housing, education, health care and public accommodations.  The ordinance also creates a Lehigh County Human Relations Commission charged with investigating and enforcing claims of discrimination.  The ordinance becomes effective June 1, 2024.

Expanded Protected Characteristics and Employer Coverage




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The County of Los Angeles Will Soon Post Notice and Sample Documents to Comply with the County’s Sweeping Fair Chance Ordinance

Starting after Labor Day, employers with jobs located in the unincorporated areas of the County of Los Angeles, including work-from-home and hybrid positions, must comply with the County’s fair chance hiring ordinance.  The ordinance, which imposes obligations well beyond existing federal and state law, and which extends to con




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FDIC Approves Final Rule to Update Its Section 19 Regulations – Insured Depository Institutions Have Until October 1, 2024 to Comply

  • The FDIC has approved a final rule, effective October 1, 2024, to update its Section 19 regulations to conform to the Fair Hiring in Banking Act.
  • While the FDIC made certain clarifying changes based on public comments received, as predicted, the final rule largely aligns with the proposed rule.
  • Insured banks and credit unions must undertake a “reasonable, documented inquiry” to verify that a person with a covered offense on their record is not hired.




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Prince George’s County, MD Amends Criminal Background Check Law

The Prince George’s, Maryland County Council recently enacted Bill CB-019-2024, amending the county's Fair Criminal Record Screening Standards. Effective September 16, 2024, the ordinance—renamed “Access to Employment for Returning Citizens”—significantly restricts employers' ability to conduct criminal background checks on job applicants. Changes to the law include a smaller threshold for employer coverage, expanded limitations on employer inquiries into applicant criminal histories, and expanded protections for employees.

Employer Coverage Threshold




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San Diego County Adds a New Layer to California’s Complex Web of Laws Regulating the Use of Criminal Records in the Hiring Process

  • Effective October 10, 2024, employers in San Diego County must assess compliance with new criminal record screening regulations.
  • The ordinance applies only in the unincorporated areas of San Diego County.




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México: Incremento al valor de la Unidad de Medida y Actualización (UMA) para el 2022

El 7 de enero de 2022, el Instituto Nacional de Estadística y Geografía (INEGI) publicó los nuevos valores para la Unidad de Medida y Actualización (en adelante “UMA”) que entrará en vigor el 1 de febrero de 2022, de acuerdo con lo establecido en el Artículo 5 de la Ley para Determinar la Unidad de Medida y Actualización.

Los valores de la UMA para el 2022 serán los siguientes:

Año




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Mexico: Increase to the UMA Value Announced for 2022

On January 7, 2022, Mexico’s National Institute of Statistics and Geography (INEGI by its acronym in Spanish) published the new values for the Updated Metric Unit (Unidad de Medida y Actualización or UMA) that will take effect on February 1, 2022, as provided by Article 5 of the Law to determine the value of the UMA. The UMA serves as the basis for calculating the payments, obligations, or penalties that are owed to the government, whether under federal or state law. Its updated value is published on an annual basis.

The values of the UMA for 2022 will be as follows:




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Puerto Rico Department of the Treasury Announces 2022 Limits on Qualified Retirement Plans

On January 14, 2022, the Puerto Rico Department of the Treasury issued Internal Revenue Circular Letter No. 22-01 (CL IR 22-01) announcing the applicable 2022 limits for Puerto Rico qualified retirement plans.




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Littler Austin’s 2022 Holiday Season Lunch and Learn




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UK Autumn Statement Round-up

UK Chancellor Jeremy Hunt delivered the Autumn Statement (Medium-term Fiscal Plan) on November 17, 2022. The plan states that the government’s priorities are “stability, growth and public services,” and sets a markedly different tone from the “Growth Plan” published in September, which promised to make “growth the government’s central economic mission.”




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Puerto Rico Department of the Treasury Announces 2023 Limits on Qualified Retirement Plans

The Puerto Rico Department of the Treasury recently issued Internal Revenue Circular Letter No. 23-01 (CL IR 23-01) announcing the applicable 2023 limits for Puerto Rico qualified retirement plans.




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Certificates of Coverage Necessary for Expatriate Workers to Claim FICA Exemption under Totalization Agreements

In an opinion issued on June 20, 2023, the United States Court of Federal Claims reminded taxpayers that they must obtain a certificate of coverage in order to claim an exemption from Social Security and Medicare taxes (FICA) under a totalization agreement.




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WA Cares Fund Premiums Started July 1, 2023, and Quarterly Reporting Begins October 1, 2023

On July 1, 2023, after a long delay, mandatory withholdings for the WA Cares Fund finally took effect. The WA Cares Fund is a state-run, long-term-care insurance program requiring employers to pay premiums through a mandatory payroll deduction from all employees who have not provided proof of an exemption.




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Puerto Rico Department of the Treasury Announces 2024 Limits on Qualified Retirement Plans

On January 31, 2024, the Puerto Rico Department of the Treasury issued Internal Revenue Circular Letter No. 24-01 (CL IR 24-01) announcing the applicable 2024 limits for Puerto Rico qualified retirement plans.




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April Roundup: Key Changes to Rates, Pensions and Employment Law in England and Wales

The new tax year is swiftly approaching, along with new statutory rates, limits and changes to employment law in England and Wales that HR practitioners should be aware of. 

Annual rates and limits increases

The usual annual updates to the statutory rates and limits will come into effect in early April 2024.

Here are the key changes:

Update

Effective date




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The Massachusetts PFML: 2025 Contribution Rates and Benefit Amounts

The Massachusetts Department of Family and Medical Leave (Department) just announced the 2025 weekly benefit amount and contribution rates for both employers and employees under the state’s Paid Family and Medical Leave benefit program, which is funded through a payroll tax.




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Under half of US firms have AI policies, report finds

Bradford Kelley says the U.S. still lacks comprehensive AI legislation, but C-suite executives are taking note of a sharp rise in regulatory activity to address AI use in the workplace.

International Employment Lawyer

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Unlocking New Benefits: Is the SECURE 2.0 Student Loan Match Right for Your Workforce?

  • The Qualified Student Loan Payment (QSLP) match program allows an employer to match an employee’s student loan repayments by making matching contributions to the employer’s defined contribution plan, such as a 401(k) plan.
  • IRS Notice 2024-63 provides guidance for plan sponsors that offer (or wish to offer) a QSLP match program.




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Ontario, Canada Human Rights Tribunal Finds it Has Concurrent Jurisdiction with Labour Arbitrators to Decide Human Rights Claims in Unionized Workplaces

The Human Rights Tribunal of Ontario recently held a preliminary hearing to determine whether allegations made under the Human Rights Code (Code) fell within the exclusive jurisdiction of a labour arbitrator, or whether the Tribunal had concurrent jurisdiction over employment-related human rights matters in a unionized workplace.  




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Littler Lightbulb: Labor & Employment Appellate Roundup

This Littler Lightbulb highlights some recent labor and employment law developments at the U.S. Supreme Court and federal courts of appeal.




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Littler Lightbulb – December Employment Appellate Roundup

This Littler Lightbulb highlights some of the more significant employment law developments at the U.S. Supreme Court and federal courts of appeal in the last month.




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Littler Lightbulb – February Employment Appellate Roundup

This Littler Lightbulb highlights some of the more significant employment and labor law developments at the U.S. Supreme Court and federal courts of appeal over the last month.

At the Supreme Court




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U.S. Immigration Laws and the Peril of Using the United States as a Venue for International Arbitration Proceedings

Angel Valverde presents issues for development of international arbitration in the U.S., as there are no visas that specifically allow a foreign national to be employed as an arbitrator, attorney or expert witness in an arbitration proceeding.

International Law Quarterly

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Littler Lightbulb – May Employment Appellate Roundup

This Littler Lightbulb highlights some of the more significant employment law developments at the U.S. Supreme Court and federal courts of appeal in the last month.

At the Supreme Court




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Littler Lightbulb – October Employment Appellate Roundup

This Littler Lightbulb highlights some of the more significant employment law developments at the U.S. Supreme Court and federal courts of appeal in the last month.

At the Supreme Court




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Employers can count sick leave credits as paid medical leave days under CLC: arbitrator

Rhonda Levy, Adrian Jakibchuk, Barry Kuretzky and George Vassos comment on an arbitrator’s ruling that federal employers can count employees’ sick leave credits as paid medical leave days under the Canada Labour Code (CLC) if their own program provides “a more favourable benefit” to workers.

Human Resources Director Canada

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Littler Lightbulb: April Appellate Roundup

This Littler Lightbulb highlights some of the more significant employment law developments at the U.S. Supreme Court and federal courts of appeal in the last month.

At the Supreme Court




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Pencils, Paper, and Now NLRA Legal Protections – New General Counsel Memorandum Provides College Student Athletes with a Very Significant New “School Supply”

On September 29, 2021, National Labor Relations Board (NLRB) General Counsel (GC) Jennifer A. Abruzzo released a nine-page memorandum taking the unequivocal position that “certain Players at Academic Institutions” are employees under Section 2(3) of the National Labor Relations Act (NLRA).  Refusing to call such players “student athletes,” Abruzzo asserts in the memorandum (GC 21-08) that:




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“Stop-WOKE” Takes Aim at Florida’s Colleges and Universities

Florida’s most recent anti-“WOKE” legislation places diversity-related work and diversity-focused positions on state campuses under threat.




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Florida’s Governor Signs Bill to Defund DEI Initiatives at Colleges

Governor Ron DeSantis has signed Senate Bill (SB) 266, officially prohibiting the state’s public colleges and universities from spending state or federal money on programs or campus activities that advocate for Diversity, Equity, and Inclusion (DEI).  The legislation aims to replace “niche subjects” like Critical Race Theory (CRT) and gender studies with “more employable majors,” according to the governor.  The law would also restrict public colleges from providing initiatives like anti-bias, DEI, and cultural competence training for educators, staff members, and students.




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NLRB General Counsel Files Complaint Demanding College Reclassify its Student-Athletes as Employees

National Labor Relations Board (NLRB) General Counsel (GC) Jennifer Abruzzo filed a long-anticipated complaint on May 18, 2023 against the University of Southern California (USC), the Pac-12 Conference, and the National Collegiate Athletic Association (NCAA), alleging that their failure to use the term “employee” to refer to student-athletes in the university’s student athlete handbook and related social media policies intentionally discourages student athletes from exercising their alleged Section 7 rights as employees under the National Labor Relations Act (NLRA).




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Littler Welcomes Jim Thelen as Of Counsel in Portland

PORTLAND, Maine (May 24, 2023) – Littler, the world’s largest employment and labor law practice representing management, has added James Thelen as of counsel in its Portland, Maine office. Prior to joining Littler, Thelen was a higher education consultant, as well as general counsel and chief legal officer at the University of Maine System, a statewide system of seven public universities. While there, he also served as vice chancellor for strategic initiatives and chief of staff.




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Littler Lightbulb – June Employment Appellate Roundup

This Littler Lightbulb highlights some of the more significant employment law developments at the U.S. Supreme Court and federal courts of appeal in the last month.

At the Supreme Court




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DHS Announces Updated STEM Designated Degree Program List

On July 12, 2023, the U.S. Department of Homeland Security (DHS) updated the STEM Designated Degree Program List by adding eight new qualifying fields of study. The Program List is generally used to determine whether a degree completed by an F-1 nonimmigrant student qualifies as a science, technology, engineering, or mathematics (STEM) degree as determined by DHS.




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NLRB Regional Director Says Dartmouth Men’s Basketball Players Are Employees, Can Vote in Union Election

On February 5, 2024, the NLRB’s Regional Director for Region 1, Laura Sacks, issued a written decision finding that Dartmouth’s men’s basketball players are employees under the National Labor Relations Act. Based on their status as employees, Regional Director Sacks found, Dartmouth’s men’s basketball players are eligible to vote in a union election petitioned for by Local 560 of the Service Employees International Union, a labor union that already represents several other more traditional employee groups at Dartmouth.




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Unionizing Student Athletes Called ‘Existential Threat’ by GOP

Tyler A. Sims says student athletes shouldn’t be classified as employees under the National Labor Relations Act.

Bloomberg Law

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House Republicans Warn Against College Athlete Unions

While testifying at a congressional hearing, Tyler A. Sims said the potential consequences of unionizing could be damaging for athletes.

Inside Higher Ed

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Dartmouth basketball vote shows unionization ‘can happen anywhere,’ attorney says

Tyler Sims discusses the potential wage-and-hour implications of Dartmouth College’s men’s basketball team voting to form what may become the NCAA’s first-ever athlete labor union.

HR Dive

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A Look at the Proliferation of New Legislation Addressing IE&D Across the Country

  • There has been an explosion of inclusion, equity and diversity-based legislation over the last two years.
  • Since 2023, dozens of “anti-IE&D” bills have been introduced and 12 have become law, attempting to restrict IE&D-related activities.
  • At the same time, several jurisdictions have recently sought to introduce “pro-IE&D” bills that would require IE&D training and other IE&D-related activities.




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Canada Announces Increase in Off-campus Work Hours for Study Permit Holders

On April 29, 2024, The Honourable Marc Miller, Minister of Immigration, Refugees and Citizenship, announced that effective the fall semester 2024, international students holding a valid study permit will be permitted to work up to 24 hours per week off campus during the school term. The current policy permits international students to work up to only 20 hours per week off campus during the school term.

This change is designed to not only help students gain work experience and offset expenses, but also to address ongoing Canadian labour shortage needs.