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Effective January 1, 2017, AB 1289 (the Act) requires all transportation network companies (TNC) such as Uber and Lyft – businesses using an online-enabled platform to connect paying passengers with drivers using their personal vehicles – to conduct a local and national background check for each participating driver.
The Act specifically prohibits a TNC from contracting with, employing, or retaining a driver if she or he:
A TNC may conduct the background check itself or have a third party do so. (Such third parties may in turn be regulated by federal and California laws for consumer reporting or investigative consumer reporting agencies. See, e.g., Pre-Employment Background Checks and Background Check for Employment.)
A business affected by the Act must include a local and national criminal background check for each participating driver that shall include a “multistate and multi-jurisdiction criminal records locator or other similar commercial nationwide database with validation,” as well as the United States Department of Justice National Sex Offender Public Website.
A TNC that fails to comply with this Act is subject to a penalty of not less than $1,000 nor more than $5,000 for each offense.
However, if you are subject to the Act and have a business in Los Angeles or San Francisco, it is a good idea to check with a knowledgeable attorney before doing any such required criminal background checks. Each of those cities has a potentially conflicting “Ban the Box” ordinance prohibiting a criminal background check prior to an offer of employment. Legal guidance can thus help determine the best possible sequence for complying with these potentially conflicting laws.
For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
Helena Kobrin
February 10, 2017
If you are an employer facing possible litigation, or have an employee issue on which you need immediate guidance, call us to set up a consultation, or submit your message.
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