San Francisco Fair Chance Ordinance for employers (2026): the August 2026 amendments, the seven-day window and notices

San Francisco's Fair Chance Ordinance, Article 49 of the Police Code, bars employers with five or more employees, including staffing agencies, from asking about arrests or convictions or running a background check until after a conditional offer, for any job worked at least eight hours a week in the city. It bars ever considering certain records, including most convictions more than seven years old, requires a job ad statement and a poster, and gives candidates seven days to respond before a final decision. Amendments effective August 10, 2026 (Ordinance No. 128-26) protect out-of-state records for conduct lawful in California related to abortion care, drag, gender-affirming care and miscarriage, add 14-day and 30-day deadlines for employers, and double the penalties. As of November 2026 the Office of Labor Standards Enforcement (OLSE) enforces it.

What is the San Francisco Fair Chance Ordinance?

The Board of Supervisors finally passed Ordinance No. 17-14 (File No. 131192) on February 11, 2014, adding Article 49 to the Police Code. It has been amended twice:

• Ordinance No. 54-18 (File No. 171170), finally passed April 3, 2018 and operative October 1, 2018: lowered coverage from 20 employees to five, added decriminalized conduct to the never-consider list, moved all questions to after a conditional offer, added penalties from the first violation and created a private right of action.
• Ordinance No. 128-26 (File No. 260540), finally passed July 7, 2026, approved by the Mayor July 10, 2026 and effective August 10, 2026: the out-of-state protections, the employer deadlines and higher penalties described below.

The OLSE enforces the employment provisions; the Human Rights Commission enforces the separate affordable housing provisions. The OLSE's Fair Chance Ordinance page summarizes the current rules.

Who does it cover?

• Employers. Any business "located or doing business in the City" that "employs five or more persons regardless of location," including owners and managers. "Employer" "includes job placement and referral agencies and other employment agencies" and excludes government (section 4903). The OLSE's reporting FAQ says to count all employees worldwide.
• Jobs. Temporary, seasonal, part-time, contract, contingent, commission and agency work and training, where the physical location of the job "must be at least eight hours per week within the City" (4903). Because the test is physical location, remote work done from inside San Francisco appears to count; confirm with counsel.
• Applicants and employees. The rules protect applicants, potential applicants and current employees, and an adverse action includes refusing to hire, firing, not promoting, or limiting someone's opportunities (4903, 4904(a)).
• Checks required by law. Ordinance 17-14 says Article 49 may not be applied in conflict with state or federal law and that employers may ask about older convictions where federal or state law requires it. The OLSE's reporting FAQ says industries with federal or state background check requirements are preempted.

When can an employer ask, and what can it never consider?

Section 4904(b) bars questions about convictions or unresolved arrests on any application; the application may ask for consent to a background check only with "a clear and conspicuous statement" that the check will not be run until after a conditional offer. Section 4904(c) bars asking about, requiring disclosure of or discussing conviction history or an unresolved arrest, and running a background check, until after a conditional offer. "Inquire" covers any direct or indirect conduct, by any mode, including application forms and interviews (4903). Ads and other communications may not say that people with arrests or convictions will not be considered (4904(j)).

Under section 4904(a), an employer may never ask about or act on:

• an arrest not leading to a conviction (an unresolved arrest, one still under active investigation or trial, is the exception);
• a diversion or deferral of judgment program;
• a conviction dismissed, expunged, voided or otherwise made inoperative, for example under Penal Code 1203.4;
• juvenile justice matters;
• a conviction more than seven years old from the date of sentencing, unless the job involves services to or authority over minors or dependent adults, or care for or authority over people 65 or older;
• infractions, unless driving is more than a de minimis part of the job, and convictions for conduct since decriminalized, such as non-commercial cannabis use.

Since August 10, 2026, out-of-state convictions or unresolved arrests for conduct lawful in California and related to abortion care, drag performances, gender-affirming care (including use of a facility or sports team matching one's gender identity) or miscarriage and stillbirth can never be a "Directly-Related Conviction" (4903, as amended).

What must job ads and the poster say?

Ordinance 17-14 requires every solicitation or advertisement likely to reach people seeking work in the city to say the employer will consider qualified applicants with criminal histories consistent with Article 49. The OLSE suggests: "Pursuant to the San Francisco Fair Chance Ordinance, we will consider for employment qualified applicants with arrest and conviction records." The updated 2026 poster must be posted at each workplace in English, Spanish, Chinese and any language spoken by at least 5 percent of employees there, and the OLSE says employers "must also provide a copy of the poster to each applicant or employee before the employer conducts a background check."

What must happen before a final adverse action?

1. Individualized assessment. Consider only Directly-Related Convictions, the time since the conviction or unresolved arrest, and any evidence of inaccuracy or rehabilitation (4904(f)). A conviction is directly related when the conduct "has a direct and specific negative bearing" on the person's ability to do the job; the employer weighs the nature and gravity of the offense (added in 2026), whether the job offers the chance for the same offense, and whether the circumstances will recur (4903).
2. Pre-adverse action notice. Before acting, give the candidate a copy of the background check report, if any, and notice of the prospective adverse action and the items it is based on (4904(g)).
3. Seven days to respond. The candidate may tell the employer, orally or in writing, within seven days of that notice, that the record is inaccurate or give evidence of rehabilitation or mitigating factors, such as compliance with probation or parole, employer recommendations, training or treatment (4904(h); 4903).
4. Confirm within 14 days and reconsider. The employer must confirm receipt within 14 days, delay the action for a reasonable period and reconsider. If the candidate makes "a reasonable factual showing" that the action rests solely on a conviction that is not directly related, the employer "must withdraw the Adverse Action" (4904(h), as amended).
5. Final notice within 30 days of the candidate's response or, with no response, within 30 days of the employer's notice (4904(i), as amended).
6. Keep records three years and give the OLSE access; missing records create a presumption of noncompliance (4910).

San Francisco's factors are written into its own code, so the EEOC's October 28, 2026 rescission of its 2012 arrest and conviction records guidance does not change them.

How does it fit with California's Fair Chance Act and the FCRA?

California's Fair Chance Act applies to San Francisco employers too, with five business days to respond and five more when the candidate disputes the record, as our California ban-the-box page explains; the OLSE says employers "must comply with both laws." Run both clocks and wait for the later one, and follow the longer never-consider list, which in San Francisco adds infractions, decriminalized conduct, the seven-year limit and the protected out-of-state records. If a screening company runs the check, add the FCRA steps in our FCRA background check guide; California's reporting rules are on California background check laws. San Francisco's separate salary history ordinance is on California's salary history ban.

What do staffing agencies and their clients each do?

• Both are covered. Agencies are employers in their own right, and agency work counts as employment, so the ordinance applies to the agency's intake and to the client's decision.
• Ads and poster. Put the OLSE line on every agency posting for San Francisco work, and give the poster to the candidate before any background check.
• Who sends what. The ordinance does not split the steps. Agree in writing who gives the pre-adverse action notice, who confirms receipt within 14 days, who sends the final notice within 30 days, and who keeps the three-year file.
• Client requests. A request for "clean records only" before an offer asks the agency to inquire too early.

Who enforces it and what are the penalties?

Anyone may report a suspected violation to the OLSE within 60 days (fco@sfgov.org, 415-554-5192), and the OLSE keeps the reporter's identity confidential where the law allows (4909(a)). Since August 10, 2026 the OLSE may impose up to $1,000 for a first violation, $2,000 for a second and $4,000 for each later one, for each applicant or employee affected, paid to that person, with an appeal to a hearing officer. The OLSE does not second-guess an employer's view that a conviction is directly related, except for the protected out-of-state records, but may find a violation where no individualized assessment was done. The City or an applicant may sue for reinstatement, back pay, liquidated damages of $1,000 per day and attorney's fees; an applicant must first file with the OLSE, wait 90 days and give 30 days' notice to the OLSE and the City Attorney (4909(b)). Suits must be filed within one year of the violation or its discovery (4909(e)).

Employers with five or more employees worldwide also submit the Fair Chance part of the OLSE's Employer Annual Reporting Form, according to its March 26, 2026 FAQ (4910(b)).

A copy-ready ad line and pre-adverse action notice

The ad line is the OLSE's suggested wording. Adapt the notice with counsel and combine it with any FCRA notice.

JOB AD (every posting for work 8+ hours a week in San Francisco)
Pursuant to the San Francisco Fair Chance Ordinance, we will consider for
employment qualified applicants with arrest and conviction records.

NOTICE OF PROSPECTIVE ADVERSE ACTION
Date sent: [date]
Dear [name],
We made you a conditional offer for [position] on [date]. We are
considering withdrawing it because of these items in your background
check report: [items]. A copy of the report and the San Francisco Fair
Chance Ordinance notice are enclosed.
You may tell us, orally or in writing, within SEVEN DAYS of [date], that
any item is inaccurate, or give us evidence of rehabilitation or other
mitigating factors. Contact [name, phone, email].
We will confirm receipt within 14 days, reconsider, and tell you our
final decision within 30 days of your response (or of this notice if
you do not respond). Questions about your rights: OLSE, 415-554-5192,
fco@sfgov.org.

San Francisco fair chance rules at a glance

For Southern California, see the Los Angeles and Los Angeles County ordinances, and for one process across all of them, our fair chance hiring policy template.