San Diego Fair Chance Ordinance: What CRAs Need to Know About the County's New Hiring Rules

In 2024, San Diego County became the latest California jurisdiction to enact a Fair Chance Ordinance, signaling a broader shift in how criminal background information is used in employment decisions. This law adds to California’s existing Fair Chance Act and reflects a growing national trend toward eliminating barriers for individuals with prior convictions.

Adopted in January 2024 and effective July 1, 2024, the San Diego County Fair Chance Ordinance establishes enhanced restrictions and responsibilities for employers and their background screening partners—especially Consumer Reporting Agencies (CRAs). At Eagle Eye Screening Solutions, we recognize that staying ahead of these evolving requirements is critical for compliance, client trust, and operational efficiency.

This comprehensive guide outlines what CRAs and their clients need to know about the ordinance, how it differs from state law, and how to prepare for successful implementation.

What Is the San Diego Fair Chance Ordinance?

The San Diego County Fair Chance Ordinance regulates when and how employers in unincorporated areas of the county may consider criminal history during the hiring process. Like California's statewide Ban the Box law, it prohibits employers from:

• Asking about an applicant’s criminal record
  
• Conducting criminal background checks
  
• Considering criminal history in hiring decisions
  
  

Until after a conditional offer of employment has been made.

However, the county ordinance goes a step further by introducing new recordkeeping, notice, and assessment standards that align more closely with practices seen in other progressive jurisdictions like Los Angeles City and San Francisco.

Jurisdictional Scope

Understanding the geographic scope of the ordinance is crucial.

• The law applies to employers with five or more employees who operate in the unincorporated areas of San Diego County.
  
  
• It does not apply to incorporated cities within the county, such as:
  
• San Diego
• Chula Vista
  
• Escondido
  
• Oceanside
  
  
• However, remote and hybrid workforces, or employers headquartered elsewhere but hiring for roles that touch the unincorporated areas, may still fall within scope.
  
  

For CRAs, this means evaluating whether your clients’ operational footprint or job postings may inadvertently trigger compliance obligations—even if they’re not based in San Diego County directly.

Key Compliance Requirements

The ordinance reinforces a series of structured obligations that both employers and their background screening partners must follow.

1. Conditional Offer Requirement

Before an employer can request or review a background check, they must make a bona fide conditional offer of employment. This means:

• The offer is only contingent on the results of the background check.
  
  
• The applicant should reasonably expect that the position will be offered if no disqualifying history is revealed.
  
  

CRAs must delay background check processing until a clear indication of a conditional offer has been received from the employer. This might involve:

• Triggering background report generation only after confirmation flags are sent via ATS or API
  
  
• Providing optional hold-and-release workflows tailored to client preferences
  
  

2. Individualized Assessment & Notice

If an employer decides to rescind a conditional offer due to criminal history, they must:

• Conduct an individualized assessment, considering:
  
• The nature and gravity of the offense
  
• Time passed since the conviction or completion of sentence
  
• Relevance to the specific job duties
  
  
• Provide the applicant with:
  
• A pre-adverse action notice
  
• A copy of the background report
  
• A written explanation of the assessment
  
• A minimum of five business days for the applicant to respond
  
  

Issue a final adverse action notice only after this period, incorporating any additional information the applicant provided.

These steps are consistent with FCRA requirements but also introduce added documentation and justification standards that CRAs can support by offering:

• Structured, easy-to-understand report formats
  
• Optional comment fields or guidelines for employer assessments
  
• Tools for report suppression or risk scoring based on client-defined logic
  
  

3. Record Retention and Posting Obligations

Employers must:

• Retain records of:
  
• Criminal background checks
  
• Individualized assessments
  
• Adverse action decisions
  
• Applicant responses
  
  

For a minimum of three years from the date of the hiring decision.

• Remove any mention of criminal history from:
  
• Job advertisements
  
• Applications
  
• Recruitment materials
  
  

This creates a heightened need for compliance across all stages of the hiring process—from initial job posting to final onboarding.

Practical Implications for CRAs and Background Screeners

This ordinance isn’t just a legal issue—it’s an operational challenge. For CRAs, the San Diego Fair Chance Ordinance requires deeper attention to:

• Timing controls: Ensure report delivery is delayed until conditional offer confirmation
  
  
• Content filtering: Remove expunged, sealed, or non-conviction data, as required by law
  
  
• Documentation: Offer optional fields or delivery methods that help employers meet their written assessment and notice requirements
  
  
• Education: Help clients understand their obligations and consequences for noncompliance
  
  

Failure to adapt systems and services could expose CRAs and their clients to legal liability and reputational damage.

Why Local Ordinances Like San Diego’s Matter

While California's statewide Fair Chance Act already imposes many restrictions on criminal background checks, county- and city-level ordinances like San Diego’s often contain more specific provisions, additional enforcement layers, and broader penalties. These ordinances reflect a strong emphasis on rehabilitation, equity, and anti-discrimination in the hiring process.

This means that CRAs operating nationally cannot afford a one-size-fits-all approach. You must be able to:

• Configure services by jurisdiction
  
• Educate clients about overlapping legal layers
  
• Offer granular controls to support local compliance

Enforcement and Penalties

The San Diego County Office of Labor Standards and Enforcement (OLSE) is tasked with enforcing the ordinance. While the OLSE will likely begin with education and voluntary compliance efforts, it does have the authority to issue:

• Administrative penalties
  
• Civil fines
  
• Remedial action requirements
  
  

Violations can occur through:

• Early background checks
  
• Missing individualized assessments
  
• Improper job postings
  
• Inadequate recordkeeping
  
  

Employers that rely on CRAs for compliant hiring data will expect their screening partners to provide not only accurate records—but also tools that help them meet these new obligations.

How Eagle Eye Screening Solutions Supports Compliance

At Eagle Eye Screening Solutions, we deliver industry-leading tools built for compliance in complex legal environments like San Diego County. Our platform offers:

Conditional-Offer-Based Report Triggers

Ensure that background reports are only generated or released after a conditional job offer has been issued.

Rule-Based Record Filtering

Our system can automatically exclude non-reportable data based on jurisdiction-specific rules, including:

• Expunged or sealed records
  
• Non-conviction data
  
• Juvenile adjudications
  
  

Seamless Integration with Hiring Platforms

We integrate directly with systems like:

• AccioData
  
• TazWorks/MeridianLink
  
• Deverus
  
• Digital Delve
  
  

This allows for automated compliance checkpoints across the client’s ATS or CRM.

Ongoing Legal Monitoring

We stay up to date with legislation at the city, county, state, and federal levels—and adjust our retrieval processes accordingly.

Preparing for the July 2024 Enforcement Deadline

With the ordinance taking effect on July 1, 2024, the clock is ticking for employers and CRAs to get compliant. Here's how to get ahead:

1. Review your client base for possible San Diego County exposure
   
2. Audit your systems for timing workflows and jurisdictional filtering
   
3. Update client onboarding protocols to educate on San Diego-specific requirements
   
4. Add compliance documentation support into your report delivery
   
5. Maintain an audit trail for all reports, assessments, and client communications

Conclusion

The San Diego Fair Chance Ordinance reflects the county’s commitment to equity in hiring—and adds meaningful new responsibilities for CRAs and employers alike. By understanding its requirements and preparing now, background screeners can maintain compliance, support client confidence, and contribute to fairer hiring practices across California.

Eagle Eye Screening Solutions is proud to support CRAs and employers with real-time, compliant, and configurable criminal research tools. Contact us today to ensure your screening process aligns with San Diego’s Fair Chance standards.