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Big-name employers pay job applicants after alleged Fair Chance Act violations

Feb 27 2025

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Keller Grover / News / Employment News / Big-name employers pay job applicants after alleged Fair Chance Act violations

Amazon, IKEA pay applicants over allegations of unfairly denying jobs

Amazon, IKEA and the Los Angeles Dodgers were among big-name employers who recently settled alleged violations of California’s Fair Chance Act.

The so-called ”Ban the Box” law, which took effect in 2018, prevents companies from asking job applicants about their criminal histories before making job offers, and from rescinding preliminary offers to such applicants without deeper consideration. It was intended to prevent unnecessary hurdles to employment.

The settlements mean the companies will pay the individuals for lost wages or other harms, as well as “take corrective action to protect against future discrimination,” the California Civil Rights Department said. 

It’s a reminder for workers of the importance of knowing and advocating for your rights.

“Nobody deserves to get locked out of the job market,” CRD Director Kevin Kish said in the settlement announcement. “These settlements are going to ensure workers and job applicants across California get the protection they are entitled to under the Fair Chance Act.”

The specifics

The allegations involve a type of employment discrimination outlined in the Fair Chance Act.

A sampling of the allegations:

  • Amazon turned down a delivery driver applicant because of a more than seven-year-old conviction.
  • IKEA denied an applicant without showing how the conviction history related to or would negatively affect duties building furniture.
  • Kohl’s denied a warehouse worker applicant after an unlawful criminal history questionnaire.
  • The Dodgers didn’t notify a guest services job applicant about why the person was denied – or allow the applicant to offer evidence challenging the decision.
  • The Citizen Hotel and MPIJet turned down applicants based on criminal histories that had been sealed, dismissed, or expunged.

The protections, and why they matter

Almost one in three adults in California have an arrest or conviction that can make it hard to find a job. The state, which has been ramping up Fair Chance Act enforcement, views the law as protecting public safety by helping these people get opportunities to support themselves and their families.

Since 2018, the CRD has reached more than 100 Fair Chance Act settlements, including one last year for more than $50,000 with Octapharma Plasma. 

The law doesn’t mean employers must hire applicants with criminal records, but it prevents businesses from outright tossing their applications without further consideration. Job advertisements also can’t include blanket statements excluding anyone who doesn’t have a clean record.

Basically, the law prevents most employers (see specifics here) with at least five workers from asking about an applicant’s criminal history before making a conditional job offer. Then, the employer must consider the nature and gravity of the offense, the time that has passed, and the nature of the job sought, among other factors. The law requires employers to show that the criminal history would directly and adversely relate to performance of job duties. 

Notably, the employer may not ask about arrests that did not result in convictions, about referrals to or participation in pretrial or posttrial diversion programs, or about convictions that have been sealed, dismissed, expunged, or statutorily eradicated.

If the employer decides to disqualify the applicant, it must notify the applicant of its preliminary decision in writing. The employer must explain the disqualifying conviction, provide a copy of the criminal history report, and tell the applicant that he or she has the right to respond within five business days. If, even after an applicant’s response, the employer turns down the applicant, the employer must provide a second written notification outlining the decision, any procedure to challenge the decision, and the applicant’s right to file a complaint with the state.

If you think that you or someone you know has faced employment discrimination, contact Keller Grover for a free, confidential consultation. We can advise you about your situation and the best steps to take. In our 30 years litigating fraud and employment cases, we have recovered billions of dollars for clients.

 

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