California 2 CCR § 12062. Legally Sufficient Justification.

(a) A business establishment can show that there is no violation of the Act if there is a legally sufficient justification for a practice that has a discriminatory effect. To show that a legally sufficient justification exists, the business establishment must establish the following elements:

(1) The practice is necessary to achieve one or more substantial, legitimate, nondiscriminatory business interests;

(2) The practice effectively carries out the identified business interest; and

(3) There is no feasible alternative practice that would equally or better accomplish the identified business interest with a less discriminatory effect.

(b) In cases that do not involve a business establishment, the person whose practice has a discriminatory effect can show that there is no violation of the Act if there is a legally sufficient justification for the practice. To show that a legally sufficient justification exists, the person must establish the following elements:

(1) The practice is necessary to achieve one or more substantial, legitimate, nondiscriminatory purposes of the non-business establishment;

(2) The practice effectively carries out the identified purpose;

(3) The identified purpose is sufficiently compelling to override the discriminatory effect; and

(4) There is no feasible alternative practice that would equally or better accomplish the identified purpose with a less discriminatory effect.

(c) A respondent's justification for a practice with a discriminatory effect will not be legally sufficient if it is not supported by evidence, meaning that the justification is hypothetical or speculative.

(d) In a legal proceeding, the determination of whether an interest or purpose is substantial, legitimate, and nondiscriminatory requires a case-specific, fact-based inquiry.

Note: Authority cited: Section 12935(a), Government Code. Reference: Sections 12920, 12921, 12926, 12927, 12955, 12955.6 and 12955.8, Government Code.

1. New section filed 9-16-2019; operative 1-1-2020 (Register 2019, No. 38).

Official source: California 2 CCR § 12062. Legally Sufficient Justification..

Source snapshot retrieved: 2026-09-23T16:55:17.793778+00:00.

Version dates (indexing metadata): Effective 2020-01-01; operative 2020-01-01.

Effective-date evidence (external official source, indexing metadata): This regulatory action becomes effective on 1/1/2020.

Evidence source: https://calcivilrights.ca.gov/wp-content/uploads/sites/32/2019/09/NtcApproval-FairHousingRegulations.pdf

Applicability note (indexing metadata, not regulatory text): Review the applicable definitions, burdens of proof, exemptions, exceptions, causation, notice and procedural conditions in the source subsections. A screening criterion, housing advertisement, criminal record or land-use decision cannot be evaluated from dates alone. Read the regulations together with current state and federal statutes and any applicable local protections. This indexed version does not establish the text before its reviewed amendment date.