SIGNAL HILL, Calif. — The California Civil Rights Department announced a $93,000 settlement with the City of Signal Hill following allegations that the city violated the California Fair Chance Act by rescinding a job offer based on an applicant’s criminal history.
According to the CRD, the complaint involved an applicant who sought a position as a water systems operator in the city’s Public Works Department. The position included responsibilities such as repairing hydrants and pipelines, reading water meters, treating groundwater and providing customer service.
The CRD stated that the applicant successfully completed multiple rounds of interviews and received a conditional offer of employment. However, after conducting a background check, the city allegedly withdrew the offer without following procedures required under the Fair Chance Act.
The complaint alleged that the city failed to conduct an individualized assessment of the applicant’s conviction history before making its final decision. The CRD also alleged that the city relied on criminal history information that was more than seven years old and unrelated to the duties of the position.
According to the department, the applicant submitted information challenging the accuracy of the background check, but the city allegedly did not adequately consider that information before rescinding the offer.
The Fair Chance Act was enacted to reduce employment barriers for people with conviction histories. Under California law, employers with five or more employees generally may not inquire about an applicant’s conviction history until after a conditional job offer has been made.
Once a conditional offer is extended, employers must follow specific procedures before denying employment based on criminal history. Those procedures include conducting an individualized assessment to determine whether a conviction has a direct and adverse relationship to the duties of the job.
CRD Director Kevin Kish emphasized the importance of evaluating workers based on their qualifications rather than assumptions tied to their criminal records.
“Workers deserve to be assessed based on their skills, not on outdated stereotypes,” Kish said in a statement announcing the settlement. He added that the Fair Chance Act helps ensure that people are not unfairly excluded from employment opportunities because of past convictions.
Following an investigation, the CRD offered the parties an opportunity to resolve the matter through mediation. The resulting settlement requires the City of Signal Hill to take several corrective actions.
Under the agreement, the city will modify its hiring policies and procedures to ensure compliance with the Fair Chance Act. It also must update notices provided to applicants when employment decisions involve criminal history information.
The settlement further requires the city to consider information submitted by applicants before making a final hiring decision and to conduct an additional individualized assessment when appropriate.
In addition, city personnel involved in hiring decisions, including management and human resources staff, must receive training on the Fair Chance Act and the proper consideration of rehabilitation evidence and other mitigating circumstances.
The agreement also requires Signal Hill to report to the CRD for one year regarding employment denials connected to criminal history. Those reports must include information regarding the positions involved, the convictions relied upon and whether applicants submitted rehabilitation or mitigation evidence before final decisions were made.
As part of the settlement, the city agreed to pay the applicant $93,000 in compensation. The agreement states that the payment resolves the complaint but does not constitute an admission of liability or wrongdoing by the city.
The settlement highlights ongoing efforts by California officials to ensure that employers comply with fair hiring laws and provide meaningful opportunities for people with conviction histories.
According to the CRD, lawmakers recognized when adopting the Fair Chance Act that employment can play an important role in reducing recidivism and helping formerly incarcerated individuals support themselves and their families.
The case also raises broader questions about how employers evaluate criminal records during the hiring process and whether applicants are being given meaningful opportunities to demonstrate rehabilitation and qualifications for employment.
While the City of Signal Hill denied wrongdoing through the settlement agreement, the corrective measures required under the agreement reflect the state’s continued emphasis on ensuring that hiring decisions are based on an applicant’s ability to perform the job rather than solely on past involvement with the criminal legal system.
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