Washington State Increases Regulations for Employer Access to Criminal Background Checks

For a second time this year, the state of Washington has enacted efforts to create a fair hiring landscape for Washingtonians. We previously covered Spokane, Washington’s “Ban the Address” Ordinance, aimed at protecting applicants from housing status and history-based discrimination. Now, legislators are targeting the weight an applicant’s criminal history carries in the employer’s hiring decisions.  

On April 21, 2025, Washington Governor Bob Ferguson signed House Bill 1747 (HB 1747), making significant changes to Washington State’s Fair Chance Act, established in 2018. This legislation reshapes the conditions surrounding how and when employers can inquire into and consider an applicant’s criminal history during the candidate selection process. For organizations with 15 or more employees, these amendments will take effect on July 1, 2026; the effective date is delayed to January 1, 2027, for employers with fewer than 15 employees.

HB 1747 revisions explained

HB 1747 affects multiple components of Washington State’s Fair Chance Act, focusing on how an applicant’s criminal history can influence their chances of getting hired.

1: Employers can expect limitations when inquiring about an applicant’s criminal record.

Employers cannot inquire about an applicant’s criminal record, either directly from the applicant, through a background check, or any other means, until a conditional offer of employment is made. Additionally, employers are prohibited from implementing a company policy that automatically and categorically disqualifies individuals with a criminal record from filling any employment position. This includes advertising an open position in a way that prevents people with criminal records from applying; for example, an employer cannot advertise a position with a “No Criminal Background” requirement or similar messaging.

2: Employer decisions involving a candidate’s criminal record will be highly regulated, even after the conditional job offer.

This revision breaks down into 3 parts:

• Employers cannot reject an applicant due to their failure to disclose a criminal record prior to receiving a conditional job offer.
• Tangible adverse employment actions based on an individual’s arrest or juvenile conviction record, including discipline, demotion, or failure to hire, are prohibited—except in the case of an adult arrest where the individual is out on bail or released on their own personal recognizance while awaiting trial.
• Employers may only implement tangible adverse action in cases where they have a legitimate business reason for doing so.

The legislation defines legitimate business reason to mean that, based on information known to the employer at the time of their decision, the employer believes in good faith that the nature of the underlying criminal conduct will either (1) negatively impact the individual’s fitness or ability to perform the position; or (2) harm or cause injury to people, property, business reputation, or business assets.

3: Employers are required to follow a regulated process when taking adverse action based on an applicant’s criminal record.

If an employer does choose to take adverse action based on an applicant's criminal record, they are required to (1) notify the individual, (2) provide the records to determine the classification of a “legitimate business reason,” and (3) hold the position open for at least two business days, giving the individual a reasonable opportunity to correct or explain the record, or provide information on their rehabilitation, good conduct, work experience, education, and training.

If adverse action is still pursued even after the candidate has pleaded their case, the employer is required to provide a written document declaring the specific reasoning for the decision. This documentation must include explanations for each of the following:

• Each of the relevant “legitimate business decision” factors
• The impact the conviction would have on the position or overall business operations,
• Considerations of the individual’s rehabilitation, good conduct, training, work experience, and education

If an applicant voluntarily discloses information about their criminal record at any time before the conditional job offer, including during an interview, the employer is required to immediately inform the applicant in writing of the Fair Chance Act requirements and provide a copy of the Attorney General’s Fair Chance Act Guide.

4: Employers can expect to see an increase in violation penalties.

The new legislation enforces civil penalties of up to $1,500 for an employer’s first violation, $3,000 for the second, and $15,000 for each subsequent violation. In such cases, damages are payable directly to the affected applicant or employee.

The Washington Attorney General’s Office retains enforcement authority, which is empowered to investigate violations, impose administrative penalties, and pursue legal action in court for penalties, unpaid wages, costs, and attorney fees. 

What this means for Washington employers, job seekers, and employees

By implementing multiple regulations aimed at protecting job applicants and employees, Washington has made their view pretty clear—criminal discrimination should have a minimal role, if any, in influencing employers’ staffing decisions.

As with any significant legislative change, this will come with increased due diligence expectations. Employers are encouraged to pay close attention to the details of these regulations on criminal record bias to avoid noncompliance. Verified Credentials will attempt to provide additional information on any related Fair Chance hiring laws as they become available.

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