Effective August 10, 2026, San Francisco is amending its Fair Chance Ordinance (FCO), the city’s “ban-the-box” law governing the use of criminal history information in employment decisions. The amendments expand the types of criminal records employers may not consider and increase potential liability for violations.
The FCO applies to employers with five or more employees that are located in or conduct business in San Francisco and covers positions involving at least eight hours of work per week in the city.
Additional Criminal Records May Not Be Considered
The most significant change expands the list of criminal records that employers are prohibited from considering in employment decisions.
Beginning August 10, 2026, employers may not rely on certain out-of-state arrests, convictions, or related criminal history information when the underlying conduct is lawful in California and relates to:
- Abortion-related healthcare;
- Gender-affirming care;
- Drag performances; or
- Spontaneous abortion.
As a result, employers may need to review criminal background screening procedures and adverse action processes to ensure these categories of records are excluded from consideration.
Existing Fair Chance Restrictions Remain in Place
The amendments build on existing Fair Chance Ordinance requirements.
- Covered employers generally remain prohibited from considering, among other things:
- Arrests that did not result in conviction (with limited exceptions for unresolved arrests);
- Participation in diversion or deferred judgment programs;
- Expunged, dismissed, or otherwise invalidated convictions;
- Juvenile adjudications;
- Infractions; and
- Certain older convictions.
Employers also must continue to delay criminal history inquiries until after a conditional offer of employment has been made.
Expanded Applicant and Employee Response Rights
The amended ordinance also revises the procedure employers must follow before taking final adverse action based on criminal history information.
Under the revised rules, if an applicant or employee responds within seven days of receiving the preliminary notice and provides information regarding:
- The accuracy of the criminal history information; or
- Evidence of rehabilitation or other mitigating factors,
the employer must provide a response confirming receipt of the information within 14 days and delay the proposed adverse action for a reasonable period while reconsidering the decision.
New Deadlines for Final Adverse Action Notices
The ordinance also establishes new timing requirements for final adverse action notifications.
After completing the reconsideration process, employers must provide notice of any final adverse action:
- Within 30 days after receiving the applicant’s or employee’s response; or
- If no response is received, within 30 days after issuing the initial pre-adverse action notice.
These changes may require employers to revise existing Fair Chance Ordinance procedures, adverse action templates, and background screening workflows to ensure decisions are not finalized prematurely.
Increased Penalties for Violations
The amendments increase potential consequences for noncompliance. The ordinance increases:
- Administrative penalties for violations; and
- Liquidated damages that may be available through litigation.
The heightened penalties increase the risks associated with noncompliant background check practices and adverse hiring decisions.
Hiring Process Implications
The amended ordinance may require employers to revisit:
- Background screening policies;
- Criminal history review procedures;
- Adverse action notices;
- Recruiter and hiring manager training; and
- Vendor instructions provided to consumer reporting agencies.
Employers conducting nationwide criminal background checks may be particularly affected because out-of-state records involving conduct that is lawful in California may now require additional review before being considered.
Employer Takeaway
Before August 10, 2026, covered San Francisco employers should review criminal background check policies and hiring procedures to ensure compliance with the expanded protections. Employers should verify that prohibited categories of criminal history are excluded from employment decisions and evaluate whether updates to forms, training materials, and vendor instructions are necessary. The amendments continue San Francisco’s trend toward broader protections for applicants and employees with criminal histories while placing additional compliance obligations on employers using background screening in hiring and employment decisions.