California Labor Code 432.7: Prohibitions, Exceptions, Penalties

California Labor Code section 432.7 prohibits every employer in the state, public or private, from asking about or using an arrest that never led to a conviction, participation in a pretrial or posttrial diversion program, or a conviction that has been judicially dismissed or sealed. The ban runs through the entire employment relationship: application, interview, hiring, training selection, promotion, and termination. If an employer violates it, you can sue directly for damages, costs, and attorney’s fees, with higher penalties when the violation is intentional.¹

What the Statute Puts Off-Limits

The core rule is a flat prohibition. No California employer can ask you, on a written application or in an interview, to disclose information about an arrest or detention that did not result in a conviction. The statute reaches beyond questions. Employers also cannot seek that information from any other source and cannot use it as a factor in any employment decision.¹

Three additional categories of criminal history sit inside the same protection:

Referral to or participation in any pretrial or posttrial diversion program, including programs authorized under the Welfare and Institutions Code and any other program California law defines as diversion.
Convictions that a court has dismissed under Penal Code provisions such as sections 1203.4 or 1203.45. A dismissed conviction cannot be treated as though it still exists.
Convictions that a court has ordered sealed. A sealed conviction receives the same protection as an arrest that never produced a conviction.²

The statute also restricts law enforcement personnel who hold criminal records. A peace officer or law enforcement employee cannot knowingly disclose non-conviction arrest information or diversion program records to anyone not legally authorized to receive it, particularly when the disclosure is meant to affect someone’s employment.¹

Juvenile Records Get Stronger Protection

The statute treats juvenile records with extra care. Employers cannot ask about or use any record related to an arrest, detention, diversion, adjudication, or court action that took place while you were under the jurisdiction of the juvenile court. Section 432.7 explicitly excludes juvenile adjudications from the definition of “conviction,” so no employer can treat a juvenile court finding the same way it would treat an adult criminal conviction.²

This protection holds even inside the narrow industry exceptions the statute allows. A health facility employer permitted to ask about certain adult arrests still cannot inquire into any juvenile offense history that a court has sealed.¹

The Narrow Industry Exceptions

Section 432.7 carves out a small set of exceptions where public safety concerns override the general rule. They are narrower than many employers assume.

Law Enforcement and Criminal Justice Agencies

Applicants for peace officer positions and for jobs at the Department of Justice and other criminal justice agencies are not covered by Section 432.7. For current non-sworn employees at criminal justice agencies whose duties involve evidence handling or activities directly tied to law enforcement functions, the exception is more limited: only arrests for violent felonies, serious felonies, and crimes involving dishonesty or obstruction of legal processes can be disclosed.²

Government agencies that employ peace officers can access arrest information authorized under Penal Code sections 13203 and 13300. Even then, the employer cannot base an employment decision solely on an arrest report. The arrest information can only start an independent internal investigation conducted under the Peace Officers Bill of Rights.¹

Health Facilities

Employers at health facilities as defined in Health and Safety Code 1250 can ask about two narrow categories of arrests depending on the position. For positions with patient access, the employer can ask about arrests under Penal Code 290, which covers sex offenses requiring registration. For positions with medication access, the employer can ask about arrests under the drug-related offenses formerly listed in Health and Safety Code 11590. Even within this exception, health facility employers must give applicants a list describing the specific offenses they are asking about, and sealed juvenile records remain off-limits.¹

How 432.7 Relates to Convictions Still on Your Record

Section 432.7 does not by itself restrict when an employer can ask about a conviction that remains on your record. A separate statute, California’s Fair Chance Act at Government Code 12952, handles that timing. For employers with five or more employees, the Fair Chance Act bars any inquiry into conviction history before a conditional offer of employment, whether on the application, in the interview, or through a background check.³

The two statutes overlap. After a conditional offer, an employer can ask about convictions still on your record, but Section 432.7 continues to block any question about the categories it protects, including non-conviction arrests, diversion, and dismissed or sealed convictions. Nothing about a conditional offer opens those doors.

What a Violation Costs the Employer

Section 432.7 sets two tiers of civil consequences. For any violation, the applicant can recover actual damages or $200, whichever is greater, plus court costs and reasonable attorney’s fees. When the violation is intentional, the recovery rises to treble actual damages or $500, whichever is greater, plus costs and attorney’s fees. An intentional violation is also a misdemeanor carrying a criminal fine of up to $500.¹

The minimums look modest until you consider scale. A standard job application form containing an illegal question about arrest history exposes the employer to the same violation against every applicant who filled it out. Combined with attorney’s fees and the possibility of class treatment, the exposure can grow quickly.

What You Can Do If an Employer Violates the Law

Section 432.7 creates a private right of action. You can sue the employer directly in civil court without first obtaining permission from any agency, seeking the damages, costs, and fees the statute authorizes.²

You can also file a complaint with the California Civil Rights Department, the agency formerly known as the Department of Fair Employment and Housing. The CRD handles complaints under the Fair Chance Act and the broader Fair Employment and Housing Act, including claims that an employer’s use of criminal history amounted to race or national origin discrimination.⁴

If an employer fired, demoted, or otherwise punished you for refusing to answer an illegal criminal history question, that retaliation complaint goes to the Division of Labor Standards Enforcement at the Labor Commissioner’s Office.⁵

Filing with an agency does not block a private lawsuit, but deadlines matter. Complaints under the Fair Employment and Housing Act generally must be filed with the CRD within three years, and the limitations period for a civil suit under Section 432.7 may differ. If you think an employer violated your rights, talk to an employment attorney soon rather than later.

1
California Legislative Information. California Code Labor Code 432.7 – Contracts and Applications for Employment
2
California Legislative Information. California Code LAB 432.7 – Contracts and Applications for Employment
3
California Legislative Information. California Government Code 12952
4
California Civil Rights Department. About Civil Rights Department
5
Department of Industrial Relations. Division of Labor Standards Enforcement – Retaliation and Discrimination Complaints