How San Francisco’s Fair Chance Ordinance Amendments Affect Employers

As the first to adopt a fair-chance hiring law in 2014, San Francisco is no stranger to trailblazing employer laws. After restricting employer language in job applications regarding criminal history and the consideration of it during the initial application process, the city is again reshaping how employers and affordable housing providers may use criminal history information in hiring and housing-related decisions. For the purposes of this article, we will focus on how these amendments apply to employers hiring in San Francisco.

San Francisco’s Ordinance No. 128-26 amends the city’s original 2014 Fair Chance Ordinance. The amendments to San Francisco’s Fair Chance Ordinance took effect August 10, 2026.

How does San Francisco Ordinance No. 128-26 change the Fair Chance Ordinance? 

Additions to San Francisco’s Fair Chance Ordinance can be boiled down into two new basic sub-categories: (1) new guidelines on considering out-of-state records and (2) additional workplace compliance measures and penalties. Below is a quick overview of what has changed.

1: New guidelines on considering out‑of‑state criminal records

In the previous version of the law, employers were permitted to consider out-of-state records that were considered directly related to the job, assuming they were not part of an explicitly banned category under San Francisco’s Fair Chance Ordinance.

As of August 10, 2026, employers can no longer consider certain out‑of‑state arrests or convictions for conduct or circumstances that are otherwise lawful in California, including:

• Abortion‑related healthcare
• Drag performances
• Gender‑affirming care
• Spontaneous abortion

More specifically, the original version of the Fair Chance Ordinance allowed employers to consider out-of-state convictions if they were directly related to the job. This occasionally resulted in gaps that allowed employers to consider out-of-state records that would not be considered a crime under California law. In contrast, under Ordinance No. 128-26, consideration of certain out-of-state records is now prohibited when they involve conduct that would otherwise be considered lawful under California law, regardless of whether the employer finds the out-of-state records directly relevant to the role.

2: Workplace compliance changes and increased financial penalties

The amendment introduces increased penalties and additional compliance expectations, including:

Higher financial penalties

• First violation: Maximum administrative penalty increased from $500 to $1,000.
• Second violation: Maximum administrative penalty increased from $1,000 to $2,000.
• Subsequent violations: Maximum administrative penalty increased from $2,000 to $4,000.
• Liquidated damages increase: Additionally, the maximum liquidated damages increased from $500 to $1,000 per affected person for each day the violation continues.

Recordkeeping individualized assessment updates

In the situation that an employee or candidate shares information with the employer that challenges the accuracy of the information that an employer is considering for adverse action or presents evidence of rehabilitation, the employer is required to acknowledge the receipt within 14 days, delay adverse action, and reconsider the decision in light of new evidence.

If the information presented is found not to be directly related to a conviction, the employer is required to withdraw the adverse action. If adverse action is taken, employers have 30 days to inform candidates or employees of the final adverse action.

The San Francisco Office of Labor Standards Enforcement (OLSE) continues to administer and enforce the employment‑related provisions of the ordinance.

Who does Ordinance No. 128-26 apply to?

For employers, the FCO applies to positions in which the employee works or is expected to work at least eight hours per week within San Francisco city limits. This can include, but is not exclusive to:

• Temporary roles
• Seasonal work
• Part-time positions
• Contract and contingent work
• Commission-based roles
• Work carried out through temporary or staffing agencies
• Vocational or educational training programs, paid or unpaid

Why it matters

San Francisco’s updates to its Fair Chance Ordinance are part of an expanding movement across the country to create opportunities for individuals with a criminal past to re-integrate into society by limiting the use of criminal history for employment decisions. Ordinance No. 128-26 explicitly states that the findings show the safety and well-being of the community are reliant on fairer employment and housing opportunities for individuals with a criminal record seeking to reintegrate into society. More specifically, deliberately blocking individuals from these opportunities has proven to increase recidivism, resulting in increased crime rates that jeopardize the safety of the San Francisco community.

For a comprehensive list of changes and employer restrictions under Ordinance No. 128-26, you can view the full text of the amendment here.

All readers should consult their legal counsel before taking any action.

This content is for informational purposes only and shall not constitute legal opinion or advice. Consult your legal counsel to ensure compliance.