California: San Francisco expands Fair Chance Ordinance protections

At a glance

• Amendments to San Francisco’s Fair Chance Ordinance (FCO) took effect on August 10, 2026, expanding restrictions on the criminal history information employers may consider in employment decisions.
• Employers are now prohibited from inquiring into or relying on additional categories of convictions, including certain out-of-state convictions linked to conduct that is lawful in California.
• The amendments introduce new procedural obligations, including requirements to acknowledge timely responses from applicants or employees and reconsider proposed adverse actions.
• Employers may be required to withdraw a proposed adverse action if an individual demonstrates that the action is based solely on a conviction that is not directly related to the position.
• The amendments also increase potential penalties for non-compliance, presenting new implications for employers’ hiring, screening, and background check practices.

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San Francisco has expanded its FCO, increasing protections for applicants and employees with criminal records and introducing additional compliance obligations for covered employers. The amendments, which took effect on August 10, 2026, build upon the city’s existing 'ban-the-box' framework and provide broader coverage than California’s statewide Fair Chance Act-related requirements in certain areas.

Among the changes, the amended FCO broadens the categories of criminal history information that employers are prohibited from requesting, considering, or using when making employment decisions. The restrictions now extend to additional types of convictions, including certain out-of-state convictions relating to conduct that is lawful in California. The ordinance also continues to prohibit employers from relying on a range of criminal history records already protected under the law, such as arrests that did not result in conviction, expunged or otherwise invalidated convictions, juvenile records, older convictions, and convictions relating to conduct that has since been decriminalized.

The amendments also introduce new procedural requirements when employers are considering adverse action based on criminal history information. While employers were already required to provide advance notice before taking adverse action, they must now confirm receipt of any timely information submitted by the applicant or employee in response. In addition, employers must postpone any adverse action for a reasonable period, reassess the proposed decision in light of the information provided, and, in certain circumstances, withdraw the proposed action if it is based solely on a conviction that is not directly related to the role.

The updated ordinance also increases the penalties that may be imposed through administrative enforcement proceedings and civil litigation, expanding potential consequences for non-compliant employers.

Employers operating in San Francisco are encouraged to review their recruitment, background screening, and adverse action procedures for compliance with the revised requirements. Potential next steps include assessing application forms, background check processes, candidate communications, and notice templates, as well as training hiring teams on the revised restrictions governing criminal history information. Given the overlap between local, state, and federal requirements, employers are also encouraged to continue monitoring developments and regularly evaluate their hiring practices.