Civil Rights Department Secures Settlement with Instawork Protecting Job Opportunities for All Californians

SACRAMENTO – The California Civil Rights Department (CRD) today announced reaching an individual settlement with Instawork, an application-based company that connects businesses with workers, over alleged violations of California’s Fair Chance Act. The Fair Chance Act aims to reduce barriers to employment that can prevent people with past arrests or convictions from successfully reintegrating into their communities. As a result of the settlement, the company will take steps to ensure their policies for placements across the state comply with the Fair Chance Act.

“The Fair Chance Act is about helping people get back to work,” said CRD Director Kevin Kish. “A past arrest or conviction doesn’t mean you can’t provide service as a temporary employee. This settlement will help ensure all Californians have a fair chance at making a living.”

Job Applicant Speaks Out

In 2023, CRD received a complaint against Instawork alleging that the company denied work opportunities to a bartender in the Bay Area by blocking the person from accepting shifts through the platform without going through the steps legally required under the Fair Chance Act. On the day the person was supposed to work, they allegedly suddenly lost two shifts they had signed up for previously and were not given key information about how to properly contest the decision.

According to the complaint, the company allegedly failed to follow legally required hiring processes — such as explaining that the person could provide Instawork with evidence of rehabilitation or mitigating circumstances — and denied employment opportunities without determining whether a past conviction was related to the job. Instawork also allegedly failed to conduct an individualized assessment, consider the gravity of the offense, and the time that had passed. Instawork is an application-based company that bills itself as “the leading marketplace for hourly workers,” with over 7 million workers in its network, including over 275,000 in the Bay Area alone.

A Fair Chance to Earn a Living

The Fair Chance Act aims to combat discrimination and enhance public safety by reducing barriers to employment for people who have been previously involved in the criminal legal system. In passing the Fair Chance Act, the Legislature recognized that “employment is essential to helping formerly incarcerated people support themselves and their families” and reduces the likelihood of an individual reoffending. The law generally prohibits employers with five or more employees from asking about a job applicant’s conviction history before making a conditional job offer, requires specific procedures for considering an applicant’s criminal history after a conditional job offer, and limits convictions that employers can consider disqualifying to those that have a negative relationship with the job.

Settlement Leads to Policy Change

After conducting an initial investigation and providing the company an opportunity to settle the case voluntarily, CRD was able to reach a settlement with Instawork over the alleged violations. As a result, Instawork, while denying liability, will:

• Provide training to staff who review background checks on employment protections under the Fair Chance Act.
• Update its pre-adverse action notices to include legally required information about how workers can submit evidence of rehabilitation, provide context for the offense, or challenge the accuracy of a background check.
• Report key metrics on background checks and adverse actions to CRD to demonstrate compliance with the Fair Chance Act.
• Submit its policies on conducting individualized assessments for review.
• Compensate the individual complainant for lost wages and other harms.

If you or someone you know has experienced employment discrimination, CRD may be able to assist you through its complaint process. The department also provides general information and factsheets online about civil rights protections, including easy-to-use resources on the Fair Chance Act for employers and job applicants.

The settlement announced today was secured by Staff Counsel Miriam E. Rofael, Senior Counsel Logan Talbot, and Assistant Chief Counsel James Zahradka. It was mediated by Attorney IV Mediator Angela E. Oh.

A copy of the settlement is available here.

The California Civil Rights Department (CRD) is the state agency charged with enforcing California’s civil rights laws. CRD’s mission is to protect the people of California from unlawful discrimination in employment, housing, public accommodations, and state-funded programs and activities, and from hate violence and human trafficking. For more information, visit calcivilrights.ca.gov.

View Press Release (PDF) Civil Rights Department Secures Settlement with Instawork Protecting Job Opportunities for All Californians