Employment Background Check Rights in California: The FCRA and the Askins v. CRST Case

Most California employers run a background check before hiring. Federal and California law put strict rules on how they do it. When employers cut corners, job applicants and employees may be entitled to damages, even when the background report itself was accurate. A case now headed to the California Supreme Court will decide an important question about those claims.

What the FCRA Requires From Employers

The federal Fair Credit Reporting Act (FCRA) applies when an employer uses a third-party company to obtain a "consumer report," such as a criminal history, credit, or employment verification check. Before ordering the report, the employer must:

• Give a clear, standalone disclosure. The employer must tell you in writing that it may obtain a report for employment purposes, in a document that consists only of that disclosure. Courts have found violations where employers packed liability waivers, state law notices, or other extra language into the same form.
• Get your written authorization. You must sign off before the report is obtained.

If the employer plans to reject or fire you based on the report, it must first send a pre-adverse action notice with a copy of the report and a summary of your rights, give you a chance to respond, and then send a final adverse action notice.

For willful violations, the FCRA allows statutory damages of $100 to $1,000 per violation, actual damages, punitive damages, and attorney's fees. Because employers often use the same forms for every applicant, these claims are frequently brought as class actions.

Askins v. CRST Expedited: Do You Have to Prove You Were Harmed?

In federal court, the U.S. Supreme Court has held that a plaintiff must show a concrete injury to have standing to sue, so a technical FCRA violation that caused no real harm may be dismissed. California state courts are not bound by those federal standing rules, but California appellate courts disagree about what is required.

In Askins v. CRST Expedited, Inc., a job applicant alleged that the employer obtained background checks using disclosure and authorization forms that did not comply with the FCRA. The trial court first certified a class, then decertified it based on Limon v. Circle K Stores Inc. (2022), a Fifth District decision requiring FCRA plaintiffs in state court to show a concrete injury.

In June 2026, the First District reversed. It held that California's own standing principles govern FCRA claims filed in California courts, and that the statute allows statutory damages for willful violations without proof of actual injury. The court expressly disagreed with Limon, creating a clear split between California appellate districts.

In September 2026, the California Supreme Court granted review. Its decision will settle whether a California job applicant must prove concrete harm to pursue an FCRA claim in state court.

California's Own Background Check Laws

The FCRA is not the only protection. California law adds several more:

• Investigative Consumer Reporting Agencies Act (ICRAA). California has its own disclosure, authorization, and copy-of-report requirements for background checks prepared by outside agencies.
• Fair Chance Act. Employers with five or more employees generally cannot ask about criminal history until after a conditional job offer, and must follow an individualized assessment and notice process before withdrawing an offer because of a conviction.
• Credit check limits. Most California employers cannot use credit reports for employment decisions except for specific types of positions.

Signs Your Background Check Rights May Have Been Violated

• The disclosure form included a release of liability or a long list of other terms;
• You were asked about convictions on the job application or in the first interview;
• Your offer was withdrawn without a copy of the report or a chance to explain;
• The report contained outdated, sealed, or incorrect information; or
• You never received a written disclosure at all.

Keep copies of every form you signed and every notice you received. Until the California Supreme Court rules in Askins, whether you must show concrete harm to sue in state court remains an open question, and the answer may affect where and how a claim is filed. If you lost your job over a report, see what to do after being fired in California, and follow other recent rulings in our August–September 2026 court decisions roundup.

This article is general information, not legal advice about your situation.

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