San Francisco Amends its Fair Chance Ordinance Effective August 10, 2026
Published: August 7, 2026
Employers with operations or who may hire remote workers living in San Francisco must prepare for changes to the City’s background check regulations.
San Francisco was a pioneer in the national “Ban the Box” movement, enacting its Fair Chance Ordinance (FCO) in 2014. In direct response to changing laws in other states criminalizing personal healthcare and personal expression, on August 10, 2026, newly approved amendments will take effect, expanding protections for job applicants and employees.
As a reminder, the ordinance applies to any employer that is located in or doing business in the City, and that has 5 or more employees worldwide (including owners) but excludes governmental agencies. The law applies to all types of employment (including through a temporary agency) and covers employees who work at least eight hours per week in the City, and applicants for prospective employment who would work at least eight hours per week in the City, including those who would work remotely from a location in the City. As a reminder, a city ordinance is preempted to the extent that it conflicts with state or federal law.
Key Changes:
Protections Against Other State Convictions
Under the new FCO, employers cannot inquire about, consider, or rely on out-of-state arrests or convictions to make an adverse hiring or employment decision based on conduct that is fully legal under California law. This includes:
- Abortion-related healthcare
- Gender-affirming care
- Drag performances
- Spontaneous abortion, including stillbirth
Under the prior version of the ordinance and state law, employers had some discretion to evaluate whether an applicant’s criminal record “directly impacted” their ability to perform their job duties. The ordinance explicitly mandates that records falling under these categories can never be deemed “Directly-Related Convictions.”
New Job Posting Requirements
Job postings and ads targeted at applicants who are reasonably likely to seek employment in the City must contain a notice that the employer will consider applicants with criminal histories in a manner consistent with the requirements of Article 49.
New Deadlines; Doubled Penalties
Employers who intend to take an adverse employment action based on permissible conviction history must adhere to the new timelines:
- Once the employer provides the employee with an Adverse Action notice listing the conviction that is the basis for the prospective decision, the applicant or employee must be given seven days to present evidence that the information in the report is inaccurate, that the individual has been rehabilitated, or other mitigating factors.
- If the applicant or employee provides such evidence, the employer must respond in writing confirming receipt of the notice from the applicant or employee within 14 days and must delay the adverse decision for a reasonable period of time to reconsider.
- Final decision notice must be provided within 30 days after the Adverse Action notice if the employee or applicant does not respond, or 30 days after the employee or applicant responded.
The Office of Labor Standards Enforcement will enforce increased administrative penalties for businesses that fail to comply, of up to $1,000 for a first violation, $2,000 for a second and $4,000 for any subsequent violation.
Action Items for San Francisco Employers
Human resources teams and hiring managers should take the following compliance steps:
- Review Job Ads: Ensure postings for San Francisco-based jobs or for jobs open to remote workers based in San Francisco explicitly state that qualified applicants with arrest or conviction records will be considered.
- Review Background Screening Packages: Work closely with consumer reporting agencies and background check vendors to ensure screening matrices automatically filter out and do not report out-of-state offenses related to reproductive care, gender-affirming care, and drag performances.
- Update Internal Hiring Procedures: Ensure HR staff understands that even if an out-of-state conviction appears in a background report, it cannot be factored into individualized assessments if the underlying conduct is lawful in California.
- Align with New Adverse Action Timelines: Review procedures for sending pre-adverse, adverse action, and final notices.
- Maintain Mandatory Postings: Covered employers must continue to conspicuously post the official FCO Notice at every workplace.
By auditing your background check workflows now, you can protect your organization from administrative fines and ensure a smooth transition before the amendments officially take effect. Contact Shauna Correia or your usual Weintraub Tobin employment attorney if you have questions.