February

Fuelled by the "ban the box" movement that removed the box that asks about criminal history in 29 states and 150 counties or cities, many small businesses are considering fair chance employment.

The Center for Economic and Policy Research has revealed that when people with records can 't find employment, the gross domestic product (GDP) is affected by up to $87 billion per year. But many small businesses fear that fair-hiring laws will expose them to litigation when they choose not to hire a candidate. The National Bureau of Economic Research has added to the argument against banning the box, revealing that banning the box means that employers now are making biased assumptions, hurting the chances of minority candidates.

Employers who don't comply with regulations of the Fair Credit Reporting Act (FCRA), including for violations like failure to provide notice to applicants in a stand-alone format and getting written permission before running the background check, could face expensive and time-consuming class action lawsuits of up to $1,000 per violation.

But, after the "concrete injury" Supreme Court decision in Spokeo, Inc. v. Robins, federal courts have a heightened sensitivity to standing issues and have a new sense of protection as a result. If no harm can be demonstrated, employers can breathe easy, even if they have made a mistake.

In January 2018, California will join several other states and major cities who have prohibited private employers from asking candidates about their criminal histories before an offer has been made. Inquiries will be acceptable only after an offer has been made.

More specifically, the law makes it unlawful for California employers with five or more employees to include any questions regarding conviction history, inquire into or consider an applicant 's criminal history before a conditional offer has been made, and consider, distribute, or disseminate information relating to arrests that didn't result in conviction, referral to a diversion program or convictions that have been sealed, dismissed, expunged or statutorily erased.