What Employers Need to Know Before January 1
Introduction
Beginning January 1, 2026, new regulations under the California Consumer Privacy Act (CCPA) will significantly impact how employers collect, use, and manage personal information during the background screening process.
These changes expand privacy protections for job applicants and employees and introduce new compliance obligations for employers conducting background checks in California. Employers should act now to ensure hiring workflows, disclosures, and data-handling practices are aligned before the effective date.
What Is Changing Under the CCPA in 2026?
The updated CCPA regulations focus on greater transparency, stricter limits on data use, and expanded individual rights related to personal information collected during employment screening.
1. Notice at Collection Is Required
Before collecting any personal information — including background check data — employers must provide a clear “Notice at Collection.”
This notice must explain:
- What categories of personal information are collected
- Why the information is collected
- Whether the information will be shared or sold
This applies to job applicants, employees, and contractors involved in background screening.
2. New Rules for Sensitive Personal Information
If your background screening process involves Sensitive Personal Information, such as:
- Social Security numbers
- Biometric identifiers
- Precise geolocation data
Employers must provide a Notice of the Right to Limit Use, allowing individuals to restrict how that data is used or disclosed unless it is strictly necessary for employment-related purposes.
3. Expanded Consumer Rights for Applicants and Employees
Under the updated regulations, individuals have the right to:
- Know what personal information is collected
- Correct inaccurate information
- Request deletion of personal information
Employers must implement procedures to:
- Receive and verify these requests
- Respond within required timelines
- Avoid collecting unnecessary data during verification
4. Limits on How Background Check Data May Be Used
Personal information collected during background screening may only be used for purposes disclosed in the Notice at Collection and must be:
- Reasonably necessary
- Proportionate to the stated purpose
Using screening data beyond its original purpose may result in compliance violations.
5. Record-Keeping and Training Requirements
Employers must:
- Maintain records of privacy requests and responses for at least 24 months
- Store records securely
- Ensure employees handling personal information are trained on CCPA requirements
What This Means for Employers
Employers conducting background checks in California should take immediate steps to:
- Review and update background screening disclosures and authorization forms
- Implement Notice at Collection and Notice of Right to Limit Use where required
- Establish internal workflows for handling privacy requests
- Train HR teams and hiring managers on CCPA compliance
- Confirm that screening vendors support CCPA-compliant processes
How The Screening Source Can Help
At The Screening Source, we help employers stay compliant with evolving privacy and employment regulations by providing:
- CCPA-aligned background screening workflows
- Secure handling of sensitive personal information
- Guidance on disclosures, consent, and compliance best practices
If you have questions about how the 2026 CCPA changes affect your background screening program, our team is ready to help.
