Forget FICO, FCIHO is the new concern...for LA employers

Ban the Box Ordinance in Los Angeles

On July 1, 2017, the City of Los Angeles began active enforcement of its Fair Chance Initiative for Hiring Ordinance (FCIHO), which was enacted on January 22, 2017. FCIHO prohibits employers during the application process from asking any applicant seeking employment in the City of Los Angeles whether they have a criminal history. FCIHO also prohibits employers from seeking any information regarding the applicant’s criminal history unless and until a conditional offer of employment is made to the applicant. Additionally, even post-offer, the employer cannot take any adverse action against the applicant based on his or her criminal history, unless the employer performs a written assessment that effectively links the specific aspects of the applicant’s criminal history with risks inherent in the duties of the employment position sought by the applicant, and provides the applicant with certain information and rights prior to taking the adverse action.

FCIHO applies to private employers who have either: (i) ten or more non-exempt employees who perform at least two hours of work on average each week within the City limits; or (ii) ten or more employees and who also have any contract or subcontract with the City of Los Angeles. Employers who violate FCIHO are subject to fines up to $500 for the first violation, $1,000 for the second violation and up to $2,000 for each subsequent violation. FCIHO also contains other requirements, including certain notice, posting, record retention and anti-retaliation provisions, as well as certain limited exceptions. We suggest that all employers subject to FCIHO contact counsel to ensure they are in compliance with the new City of Los Angeles ordinance.

If you need help understanding your rights and the new law, call today:

Rick Holliday, [email protected]