Key Points:
- Limited Applicability Due to AB 25
Initially, the CCPA broadly defined “consumer” to include job applicants and employees. However, Assembly Bill 25 (AB 25) amended the CCPA to temporarily exclude personal information collected from job applicants, employees, and independent contractors from most CCPA provisions.
This exclusion was in effect until January 1, 2023, after which some CCPA rights were extended to employees and job applicants. As of now, employers must comply with the following CCPA provisions when using background screening services:
- Notice at collection–employers must inform applicants about:
- What personal data is being collected (e.g., criminal history, credit data, identifiers)
- The purpose of data collection (e.g., hiring decisions)
- Data security obligations:
Employers must implement reasonable security measures to protect personal data. If a breach occurs due to negligence, affected individuals may sue for statutory damages.
- Overlap with Other Laws
Employers in California must also comply with:
- Fair Credit Reporting Act (FCRA)
- Investigative Consumer Reporting Agencies Act (ICRAA)
- Consumer Credit Reporting Agencies Act (CCRAA)
These laws govern how background checks are conducted, what disclosures are required, and how adverse actions must be handled.
Disclaimer: This communication is for general informational purposes only and does not constitute legal advice. The summary provided in this alert does not, and cannot, cover in detail what employers need to know about the amendments to the Philadelphia Fair Chance Law or how to incorporate its requirements into their hiring process. No recipient should act or refrain from acting based on any information provided here without advice from a qualified attorney licensed in the applicable jurisdiction.