Fair chance hiring tightened in three places this year, and the deadlines are arriving now. Washington's amended Fair Chance Act takes effect July 1, 2026, Philadelphia's expanded rules are already live, and Los Angeles County now requires two individualized assessments in every case. If you hire in any of them and you are still asking about criminal history too early, your process is already behind the law.
This is bigger than any one state. If you hire in California, Washington, Philadelphia, or any of the growing list of fair chance jurisdictions, your screening process is under more scrutiny than ever. Get the sequence wrong, and a criminal history question asked too early can become a lawsuit, an agency complaint, or a state penalty.
Fair chance hiring in 2026 is no longer about removing a checkbox. That part stays, but it is only the starting line. The rules now shape how you run the whole process, and the map shifted again this year in Washington, Philadelphia, and Los Angeles County.
The Box Was the Beginning. Now It Is the Whole Process
Ban the Box started with one idea: stop asking about criminal records on the application. That is still the floor, not the goal. Newer laws reach further into everyday hiring:
- Evaluate records case by case, never with a blanket ban.
- Wait until after a conditional offer to run the check.
- Document why a conviction would justify withdrawing an offer.
- Send specific, timed notices before any adverse action.
Who Is Covered, and When
Who is covered depends on where you hire. Coverage and employer-size thresholds vary so much by state and city that the only safe move is to check each jurisdiction you operate in. California's Fair Chance Act, for instance, reaches private employers with five or more staff, along with staffing agencies and labor unions involved in placement. Other states set different thresholds, and some reach employers of any size. We keep a state-by-state compliance guide current so you can see where each one stands. Narrow carve-outs remain where other laws require pre-offer screening, such as law enforcement, certain healthcare roles with direct patient access, and licensed positions; even then, document why an exemption applies.
The rules also trigger beyond new hires. A promotion, an internal transfer, or converting a contractor to a permanent role can all bring fair chance obligations into play. Any time you screen a record the same duties apply, which is why KRESS runs criminal background checks inside a documented, fair-chance-ready workflow.
The 2026 State Map
The headline this year is movement. Several jurisdictions tightened their rules, and two of the biggest changes land in 2026.
California remains the anchor. The Fair Chance Act requires a conditional offer first, then an individualized assessment, and the Civil Rights Department publishes official sample forms you can adapt. San Francisco adds its own disclosure and notice duties.
Los Angeles County is now the most demanding in the state, requiring both an Initial and a Second individualized assessment in every case on the DCBA official forms. A single assessment no longer meets the standard.
Washington is the one to watch. Under its amended Fair Chance Act, criminal inquiries must wait until after a conditional offer, and you must give applicants at least two business days to respond before acting on a disqualifying conviction. It takes effect on 1 July 2026 for employers with fifteen or more staff, then 1 January 2027 for smaller employers. One detail catches employers off guard: if an applicant volunteers their criminal history before a conditional offer, even casually in an interview, you must immediately give them written notice of the Fair Chance Act and a copy of the Attorney General's Fair Chance Act guide.
Philadelphia expanded its ordinance effective 6 January 2026. The misdemeanor lookback drops from seven years to four, summary offenses can no longer be considered at all, and felonies remain reviewable for seven years. Coverage of contractors, rideshare drivers, and gig workers is not new this year. It dates to the 2021 amendments, while the 2026 changes broaden the employment-process scope to promotions, raises, terminations, and re-employment.
New York City still requires its two-step Fair Chance Process and the Commission's official notice form. Other states, from Illinois to New Jersey, keep extending similar protections through clean-slate and sealing laws. If you hire in more than one state, build your process to the strictest jurisdiction you touch.
Individualized Assessment: The Centerpiece
This is where most violations happen, when an employer skips the individualized assessment or does it poorly. The framework is federal. The EEOC's three-factor test, drawn from Green v. Missouri Pacific Railroad, applies as best practice everywhere, and a growing list of states and cities now require it by law before any adverse action. Once a conditional offer is made and a conviction appears, you pause and assess rather than reject outright. The three factors are the nature and seriousness of the offense, the time elapsed since it, and whether it genuinely relates to the duties of the job. Theft might matter for a cashier, yet have little bearing on a remote software role.
Keep the record: the job description, your evaluation of each factor, the candidate's response if they offer one, and a written summary of the decision. You do not submit it proactively, but if challenged, you need to show your work. The decision is yours to make and to document. KRESS supplies the verified record and the assessment template behind it, you make the call.
Adverse Action: Your Process Matters Most
If you assess the record and still decide not to hire, federal law requires a two-step adverse action process under the Fair Credit Reporting Act. Send a pre-adverse action notice with a copy of the report and a summary of FCRA rights, wait a reasonable period, commonly at least five business days, then send a final adverse action letter if your reasoning holds. Some jurisdictions add longer windows or extra documentation, so check the local rule before you act.
What a Good Screening Partner Does Now
Speed still matters, but accuracy and compliance matter more. The right partner helps you build job-specific screening rules, flags the points where an assessment is required, provides FCRA-compliant notices matched to each location, and supports your team in applying the process consistently. At KRESS, we manage the workflow and the documentation, and you make the hiring decision you can stand behind.
Take a Step Now, Before Enforcement Finds You
Washington's rules take effect on 1 July 2026, Philadelphia's are already live, and California's agencies are actively enforcing. The regulators are not waiting, and your process should not either. The fastest way to lower your exposure is a compliant, documented screening and adverse action workflow, in place before an applicant or a regulator tests it. Talk to KRESS about building one for every state you hire in, or get a quote to get started.
FAQs
Does Ban the Box still apply in 2026?
Yes. Removing the criminal-history question from the application is still required, but in most fair chance jurisdictions it is only the first step. You also need a conditional-offer sequence, an individualized assessment, and a compliant adverse action process.
What changed in Washington and Philadelphia this year?
Washington's amended Fair Chance Act takes effect on 1 July 2026 for employers with fifteen or more staff, requiring a conditional offer before any criminal inquiry and a two-business-day response window. It also requires that if an applicant volunteers their criminal history before an offer, the employer immediately provide written notice of the Act and the Attorney General's guide. Philadelphia's expanded ordinance took effect on 6 January 2026, cutting the misdemeanor lookback to four years, barring consideration of summary offenses, and keeping the felony lookback at seven years. Coverage of gig and contract workers is not new in 2026. It has applied since the 2021 amendments, which the 2026 changes build on by broadening the employment-process scope.
How long must I wait after a pre-adverse action notice?
Federal FCRA practice is a reasonable period, commonly at least five business days. Some jurisdictions require longer or add documentation, so confirm the local rule.
Do these rules apply to promotions?
Often, yes. If you screen criminal history to evaluate someone for a new internal role, you generally follow the same steps as for a new hire.