San Francisco Expands Fair Chance Ordinance: New Restrictions on Criminal History Inquiries, by Asit Panwala, Esq., 8-10-2026

Beginning August 10, 2026, covered employers located or doing business in San Francisco will face additional restrictions under amendments to the City’s Fair Chance Ordinance (FCO). The amendments expand the categories of criminal history information that employers may not inquire into or consider during the hiring process, making it important for employers to review their background check practices, hiring policies, and related procedures before the new requirements take effect.

Expanded Restrictions on Criminal History Inquiries

The amended ordinance broadens the categories of criminal history information that covered employers are prohibited from requesting, considering or relying upon when making employment decisions. Among the newly prohibited categories are out-of-state convictions and unresolved arrests based on conduct that would be lawful in California, including criminal history relating to abortion-related healthcare, gender-affirming care, drag performances, and spontaneous abortion.

Accordingly, employers should ensure that their background screening policies and practices do not rely on these categories of criminal history, even if provided by a third-party vendors. The amendments seek to prevent employers from disqualifying applicants based on conduct that is unlawful outside of California but remains lawful in California.   

Existing Fair Chance Requirements Remain in Place

The amendments supplement, rather than replace, San Francisco’s existing Fair Chance Ordinance. Covered employers must continue to delay criminal history inquiries until after a conditional offer of employment, conduct individualized assessments before taking adverse action based on criminal history, provide required notices before making a final adverse decision, and comply with the ordinance’s recordkeeping and posting requirements.

The amendments also revise certain procedural requirements during the individualized assessment process. For example, an employer must provide the applicant or employee with a copy of the background check and permit the applicant or employee to respond as to its accuracy, evidence of rehabilitation or other mitigating factors . The  employer must confirm receipt of the response within 14 days and comply with the ordinance’s updated adverse-action timeline.

Violations may result in administrative penalties, as well as potential civil remedies, including back pay, reinstatement where appropriate, and attorneys’ fees.

Steps Employers Should Take Now

Before the amendments take effect, covered employers should consider:

• Reviewing employment applications, background check authorization forms, and hiring procedures to remove prohibited criminal history inquiries;
• Updating background check vendor instructions and screening criteria to reflect the expanded categories of prohibited criminal history information;
• Revising written hiring policies and Fair Chance Ordinance compliance procedures;
• Reviewing pre-adverse action notices, adverse action procedures, and related forms to ensure they comply with the ordinance’s updated notice and response requirements; and
• Training human resources personnel, recruiters, hiring managers, and others involved in hiring decisions on the amended requirements.

Key Takeaway

The amended Fair Chance Ordinance further narrows the criminal history information that covered employers may request or consider when making hiring decisions while also revising certain procedural requirements governing the fair chance process. Employers with operations in San Francisco should review their hiring practices, background screening procedures, and related policies now to ensure compliance.

Author: Asit Panwala is Of Counsel in KD’s San Francisco office.