Published October 16, 2026. Last updated October 17, 2026.
Short answer
For most California employers under 25 people, start with a low-cost applicant tracking system such as Breezy HR or JazzHR, add Checkr for background checks, and keep onboarding inside payroll. Test the fair chance process and any AI screening feature before you rely on either.
Last reviewed October 16, 2026. Every price and feature below was checked on that date.
Hiring software looks like one purchase and is really five: an applicant tracking system, sourcing and job distribution, assessments and interviews, background screening with I-9 and E-Verify, and onboarding. California puts rules on each step, and most vendors document few of them. This is Part 2 of my series. The series overview maps every category, and Part 1 covers payroll and core HR.
Who this guide is for
This is for California owners and managers who hire without a recruiter: restaurants, retail, nonprofits and early-stage teams, Bay Area and Oakland first. I judge platforms on volume fit, California handling on screen, setup effort, true cost and who should skip them. “Not documented” means the vendor’s own pages said nothing. Ask the rep. For help with the human side of hiring, see how recruiters search LinkedIn and my Bay Area salary map for pay ranges. Setting ranges is in how to set a pay range. Search technique is in how to use LinkedIn Recruiter search.
Quick picks
One or two hires a year: a free Breezy HR plan or the free Indeed job post, plus a paper I-9.
Five to fifteen hires a year: Breezy HR Startup or JazzHR, with Checkr for background checks.
Hourly restaurant or retail hiring: Workstream for text-based screening and onboarding, after you read the AI warning below.
Structured hiring across several teams: Greenhouse, if you have someone to administer it.
Offer letters and new hire paperwork only: your payroll or HR platform from Part 1.
The California rules that shape every hiring tool
Five rules matter more than any feature list. First, the Fair Chance Act bars employers with five or more employees from asking about conviction history before a conditional offer. After the offer, you must assess the record individually, send a written preliminary notice, allow at least five business days to respond, and send a final notice (Civil Rights Department fact sheet). Oakland adds its own fair chance ordinance, which no vendor here documents. Second, employers with 15 or more employees must put the pay scale in job postings, and may not ask for salary history (Labor Code 432.3, statute copy). Third, E-Verify may not be used on applicants before an offer (Labor Code 2814, statute copy). Fourth, new hires must be reported to the EDD within 20 days (EDD). Fifth, the Civil Rights Department’s rules on automated decision systems took effect October 1, 2025, and law firm summaries report a four-year retention period for hiring records (Paul Hastings). I could not read the regulation itself, so verify the retention period with the agency. Any tool that scores, ranks or rejects applicants with AI belongs in that last bucket. For the bigger question, see does a small business need HR. Candidates see this from the other side in which AI screens a job application.
Applicant tracking systems: the best ATS for a small business
An applicant tracking system (ATS) posts jobs, collects applications and records every decision. The buyer question is whether you hire often enough to pay for one. Under three hires a year, probably not. Capterra puts entry-level recruiting software near $200 a month (Capterra). No ATS here documents a California Fair Chance workflow.
Workable
Strengths: Self-serve trial, 200+ job boards, and an AI agent for sourcing and screening (Workable pricing).
Weaknesses: Forbes Advisor summarizes user reports of support problems, bugs and add-on creep for texting, video and assessments.
Best fit for my clients: Professional services firms and nonprofits hiring regularly.
Watch out for: The agent can auto-advance and auto-disqualify candidates, which is exactly what California’s AI rules examine. Its Checkr flow documents federal adverse action, not California’s individualized assessment.
Pricing, checked October 16, 2026: Standard $299 a month, Premier $599, Enterprise $719; Forbes lists $360 for 1 to 20 employees, so confirm by quote.
JazzHR
Strengths: Low annual entry price and a plan built for small teams (JazzHR pricing).
Weaknesses: Forbes notes texting is an add-on, the entry plan allows three active jobs, and custom reporting is Pro only.
Best fit for my clients: Employers with steady, low-volume hiring.
Watch out for: Salary range and fair chance features are not documented, and standard pricing excludes organizations over 250 employees. One Capterra reviewer reports a 30-day cancellation notice tied to the bill date.
Pricing, checked October 16, 2026: Hero $1,000, Plus $3,480 and Pro $5,508 a year on annual billing.
Breezy HR
Strengths: A free plan with a career site and 50+ job boards, plus a “Require Salary Range” setting that blocks activating a job without a range (Breezy help).
Weaknesses: Forbes notes AI and texting are add-ons and custom roles need the Business plan.
Best fit for my clients: The best starting point under 25 employees.
Watch out for: The free plan allows one active job at a time. Fair chance handling is not documented.
Pricing, checked October 16, 2026: Free; Startup $157 to $189 a month, Growth $273 to $329, with the page not labeling annual versus monthly (Breezy pricing).
Greenhouse
Strengths: Pay transparency rules you set per office and a published bias audit of its AI matching by an independent firm, Warden AI (Greenhouse statement).
Weaknesses: Capterra reviewers cite pricing opacity and features behind paywalls.
Best fit for my clients: Companies with a hiring manager who runs structured interviews.
Watch out for: It is likely over-built for a restaurant or retail owner. The audit statement shows no California-specific results.
These tools find candidates and push jobs to boards. The buyer question is whether you need outbound recruiting or just reach. Most small employers need reach.
Strengths: One free job post and the widest reach for hourly roles (Indeed pricing).
Weaknesses: Support details are not on the pricing page, and I verified no review criticism.
Best fit for my clients: Restaurants, retail and care providers.
Watch out for: Sponsored jobs bill per click, and jobs pulled from an ATS feed can be sponsored-only.
Pricing, checked October 16, 2026: Budgets start at $5 a day or $150 a month, billed on the first or when spend reaches $500.
Gem
Strengths: A recruiting CRM with AI sourcing, and a free six-month All-in-One offer for companies under 30 employees (Gem pricing).
Weaknesses: Pricing is quote-based and yearly, and I found no cons text in reviews.
Best fit for my clients: Venture-backed startups hiring engineers.
Watch out for: Its AI ranking has a bias audit available only under NDA, and recruiters, not candidates, control opt-out.
Pricing, checked October 16, 2026: Startup program figures of $270 and $130 a month do not clearly match the discount shown.
Manatal
Strengths: Low per-user pricing and an AI interviewer add-on (Manatal pricing).
Weaknesses: I verified no review criticism.
Best fit for my clients: Small staffing and search firms.
Watch out for: The page does not mention EEO reporting.
Pricing, checked October 16, 2026: Professional $15 per user a month on annual billing, Enterprise $35, Enterprise Plus $55.
Platform
Pricing model
Headcount fit
California support
Integrations
AI features
Support
My fit rating
Indeed
Pay per click
Any
Not documented
Indeed Apply, ATS feeds
Fit scores (beta)
Not stated
Strong for reach
Gem
Seat-based quote
Startups up
Retention setting
Greenhouse
Sourcing agents
Success manager
Narrow
Manatal
Per user
Agencies
Not documented
Open API
Scoring, interviewer
Chat, email
Niche
Assessments and interviewing
Assessments test skills and video tools record interviews. The buyer question is whether the test predicts job performance or just adds friction. The Civil Rights Department’s rules warn that skills or reaction-time tests and tools that analyze tone or facial expressions can discriminate against people with disabilities (Paul Hastings). None of these vendors documents an accommodation workflow. Paradox and Vervoe are enterprise-oriented and quote-only, so I left them out.
Weaknesses: Trustpilot shows 3.6 of 5 from 1,722 reviews, citing mismatched tests and renewal billing.
Best fit for my clients: Roles with measurable skills, such as bookkeeping.
Watch out for: Billing is annual, and ATS integrations and AI interviews sit in the Plus tier. California features are not documented.
Pricing, checked October 16, 2026: Free; Core from $215 a month, Plus from $520.
Criteria Corp
Strengths: Validated tests with a small-business segment, and it states ISO 42001 certification for its AI (Criteria).
Weaknesses: G2 shows 4.4 of 5 from 175 reviews; I could not read the text.
Best fit for my clients: Volume hiring where a validated test matters.
Watch out for: Pricing is “built around your headcount” with no published figure.
Pricing, checked October 16, 2026: Quote only (Criteria pricing).
Spark Hire
Strengths: One-way video interviews with 24×6 support (Spark Hire pricing).
Weaknesses: AI video review and scoring raise the automated decision questions above.
Best fit for my clients: Remote professional hiring.
Watch out for: It keeps your data only while you subscribe and up to 30 days after cancellation, so export records before you leave.
Pricing, checked October 16, 2026: Video interviews $299 a month, or $249 annually; the ATS starts at $335 a month on an annual contract.
Platform
Pricing model
Headcount fit
California support
Integrations
AI features
Support
My fit rating
TestGorilla
Annual credits
Small to large
Not documented
ATS on Plus
AI interviews
Not stated
Good
Criteria Corp
Quote
Small to enterprise
Not documented
Premium add-on
AI scoring
Not stated
Conditional
Spark Hire
Monthly or annual
Under 500
Not documented
100+ listed
AI resume and video review
24×6
Conditional
Background screening and I-9 or E-Verify: California ban the box rules
These tools verify identity, records and work authorization. The buyer question is whether the vendor helps you follow the Fair Chance Act or only delivers a report. In California, a background check also needs a standalone written disclosure under the state’s investigative consumer report law, and adverse action notices must follow it (Civil Code 1786.16, statute copy). No vendor page I read documents an automated California individualized-assessment form.
Checkr
Strengths: Published per-report prices and an automated postal adverse-action letter (Checkr pricing).
Weaknesses: Trustpilot shows 4.0 of 5 from 1,004 reviews, with multi-week turnaround and disputed records reported.
Best fit for my clients: Employers who want a screening vendor connected to their ATS.
Watch out for: The pricing page lists “Fair Chance Features: not mentioned,” so confirm California steps in writing.
Pricing, checked October 16, 2026: Basic $29.99, Essential $59.99, Complete $94.99; county criminal checks $25; postal adverse action $7 a letter; Form I-9 $7.
GoodHire
Strengths: Says adverse action is built into federal, state and local workflows, and offers “Comments for Context” for candidates (GoodHire compliance).
Weaknesses: Trustpilot has only two reviews, too few to rely on.
Best fit for my clients: Employers who want a smaller-company experience.
Watch out for: GoodHire calls itself “A Checkr Company” and shows identical headline prices, so do not treat it as a second opinion.
Pricing, checked October 16, 2026: Basic $29.99, Essential $59.99, Complete $94.99 per check.
First Advantage
Strengths: A broad service list, including I-9, E-Verify and post-hire monitoring (First Advantage).
Weaknesses: No published pricing, and California handling is not documented.
Best fit for my clients: Employers with several hundred employees.
Watch out for: It completed its acquisition of Sterling Check on October 31, 2024, so Sterling is not a separate option (SHRM vendor directory).
Pricing, checked October 16, 2026: Quote only.
For I-9 and E-Verify, the paper Form I-9 from USCIS is free, and E-Verify costs employers nothing (E-Verify). Vendors charge to run them: Gusto charges $20 per Remote I-9 plus $5 for E-Verify, and Tracker I-9 starts at $2,500 per user per year on Capterra’s listing. For most small employers, a Remote I-9 inside payroll is the sensible middle.
Platform
Pricing model
Headcount fit
California support
Integrations
AI features
Support
My fit rating
Checkr
Per report
Any
Adverse action mailing; fair chance not documented
ATS and HRIS marketplaces
AI plus human review
Help center, hours not stated
Strong
GoodHire
Per check
Any
Context comments; no California detail
Checkr family
Not documented
US-based team
Good
First Advantage
Quote
Mid-market up
Not documented
I-9, E-Verify
Not documented
Sales line only
Conditional
Employee onboarding software for small business
Onboarding tools collect tax forms, offer letters and I-9 data, and start the payroll record. The buyer question is whether the new hire is legally set up on day one. In California that includes the EDD new hire report within 20 days.
Gusto
Strengths: Onboarding sits inside payroll, so a new hire flows to the EDD report, and Remote I-9 and E-Verify are available (Gusto pricing).
Weaknesses: Trustpilot shows 1.9 of 5, mostly support and billing anecdotes.
Best fit for my clients: Teams under 50 with no HR staff.
Watch out for: It does not include an applicant tracker with assessments.
Pricing, checked October 16, 2026: Simple $49 plus $6 per person, Plus $80 plus $12, Premium $180 plus $22 a month; month-to-month.
BambooHR
Strengths: Clean onboarding checklists and job openings built in (BambooHR pricing).
Weaknesses: Trustpilot shows 3.3 of 5 from 154 reviews, citing slow support and an HR diagnostic upsell.
Best fit for my clients: Nonprofits and offices of 15 to 100.
Watch out for: I-9 and E-Verify are not documented, and the Core plan caps openings at five.
Pricing, checked October 16, 2026: Core $10, Pro $17, Elite $25 per employee a month.
Workstream
Strengths: Mobile onboarding with e-signatures for W-4 and I-9, text reminders and alerts for break violations (Workstream).
Weaknesses: G2 shows 4.7 from only 64 reviews, and the pricing page contradicts itself on some features.
Best fit for my clients: Multi-location restaurants and retail.
Watch out for: Its voice AI screens and schedules candidates, which is an automated decision system. California break premium calculation is not documented.
Pricing, checked October 16, 2026: Not published.
Rippling’s onboarding documents e-signature document collection but not I-9, E-Verify or new hire reporting.
Platform
Pricing model
Headcount fit
California support
Integrations
AI features
Support
My fit rating
Gusto
Base plus per person
2 to 100
EDD report filed; I-9 add-on
Payroll, benefits
Gus assistant
Chat, callback, email
Strong
BambooHR
Per employee
15 to 100
Not documented
150+ including Checkr
Bamboo AI
Weekday phone, chat
Good
Workstream
Quote
Hourly, multi-site
Break violation alerts
ADP, Checkr, Indeed
Voice AI screening
Not stated
Conditional
Wellbeing and financial wellness tools are rare in hiring software, so I note them only where onboarding suites bundle earned wage access or benefits enrollment. Part 1 covers those.
What I would buy at 10, 25 and 50 employees
10 employees: A free Breezy HR plan, a paper Form I-9, and Checkr per report. Fix your job postings first.
25 employees: Breezy HR Startup or JazzHR, onboarding inside your payroll platform, and Checkr connected to the ATS.
50 employees: Workable or Greenhouse if you hire across teams, with written answers from the vendor on AI screening, accommodations and record retention before you turn those features on.
Questions I ask before signing a contract
What is the term, does it auto-renew, and what notice do I give?
Can I export every applicant record, including AI scores, and for how long after I cancel?
What are the setup, per-job, text messaging and background check fees?
What support do I get in writing: hours, channels and response times?
By how much can prices rise at renewal?
Show me the California fair chance steps on screen: individualized assessment, preliminary notice, five business days, final notice.
If the tool scores or rejects applicants, can I turn it off, and what records does it keep?
What is the best applicant tracking system for a small business?
For most California employers under 25 people, I start with Breezy HR because it is free to try and has a salary range setting. JazzHR suits steady low-volume hiring. Whichever you pick, test the fair chance process, since none documents it.
Do I need an ATS for a small business?
Not if you hire fewer than three times a year. A free job post and a spreadsheet can work. An ATS earns its cost when you need a record of why each candidate was rejected, which is your best defense in a discrimination claim.
Is there a free applicant tracking system for a small business?
Yes, with limits. Breezy HR’s free plan allows one active job at a time. Zoho Recruit’s free plan allows one active job per recruiter license. Indeed gives one free post.
What background check software works with California ban the box rules?
No vendor I reviewed documents the full California process. Checkr automates the adverse-action letter, and GoodHire says adverse action is built into state workflows. You still must run the individualized assessment yourself, so build it into your checklist.
Do I need I-9 compliance software?
Not by law. The paper Form I-9 is free from USCIS, and E-Verify is free. Software helps with remote verification, reminders and storage. A Remote I-9 inside payroll costs $20 per submission at Gusto.
Does AI hiring software create legal risk in California?
Yes, when it scores, ranks or rejects applicants. The Civil Rights Department’s automated decision rules treat tools that assist employment decisions as covered, and an employer can be liable for its vendor’s tools. Ask each vendor for written answers and turn off auto-reject features.
Disclosure: As of the date this series was published, I have no endorsements, sponsorships, or financial relationships with any company mentioned, and none of them paid for or reviewed this content. I use no affiliate links. My views reflect my own experience and research, and other professionals and users may reasonably reach different conclusions about these platforms. Features and pricing change often, so verify current details with each vendor before you buy.
Sources
Every link below was opened on the access date shown. Vendor pages are the vendor’s own; review-site figures are as displayed that day.
Part 3 covers performance, pay, learning and engagement tools. If you want your job postings and hiring process checked against California law, book a free consultation and bring one live posting.
McKinley holds a J.D. but is not a licensed attorney. Articles here are general information, not legal advice. For your specific situation, talk with an employment attorney.
Data current as of October 2026. Sources are linked where each figure appears.
This article is general information, not legal advice. Laws change and every situation is different; for advice on yours, talk with an employment attorney.
The overview of my five-part HR software series for California small employers: every category mapped, what to buy first, and how I check each platform. No sponsors, no affiliate links.
My Part 1 guide to HR software for California small employers: HRIS, payroll, benefits, time and attendance, and PEO platforms, with prices checked October 2026.
