Seattle Fair Chance Employment Ordinance for employers (2026): when you can ask and the two-day hold

Seattle's Fair Chance Employment Ordinance, Seattle Municipal Code chapter 14.17, limits how employers of any size use arrest and conviction records for jobs performed at least half the time inside Seattle. As of November 2026 it bans ads and policies that exclude everyone with a record, allows criminal history questions and background checks only after an initial screening has weeded out unqualified applicants, and requires a legitimate business reason, notice of the records relied on and a hold of at least two business days before a job is denied because of a record. The Seattle Office of Labor Standards (OLS) enforces it, and because Washington's Fair Chance Act now waits for a conditional offer, most Seattle employers follow the state's timing and Seattle's procedure on top of it.

What is the Seattle Fair Chance Employment Ordinance?

It is SMC chapter 14.17, "The Use of Criminal History in Employment Decisions", cited as the "Fair Chance Employment Ordinance" under SMC 14.17.005. Its history, from the code's own notes and the OLS Fair Chance Employment page:

• Ordinance 124201 (2013) enacted it as the Job Assistance Ordinance, effective November 1, 2013.
• Ordinance 124960 (December 2015) renamed it, added the poster requirement, the investigation and appeal procedures and the current remedies, and rewrote the retaliation section. OLS dates the name change to January 16, 2016.
• Ordinance 125203 (2016) amended the definitions when OLS became its own office.
• Ordinance 127303 (2025) updated the references to unsworn declarations in 14.17.045 and 14.17.080, a technical change.

The working detail is in the SHRR chapter 80 rules (dated October 22, 2013 and still the rules OLS posts) and the OLS Fair Chance Employment Q&A (revised March 1, 2021).

Who is covered?

• Employers of one or more employees. SMC 14.17.010 defines an employer as any entity "that employs another person," including anyone "acting directly or indirectly in the interest of an employer," and says more than one entity may be the employer. The federal government, the State of Washington and local governments other than the City are excluded.
• Jobs in Seattle. An employee is covered when the work is "in whole or in substantial part (at least 50 percent of the time)" inside the city (14.17.015). The Q&A says the employer's location does not matter, and that someone who telecommutes from a Seattle home at least half the time is covered.
• Not covered: independent contractors and volunteers (Q&A C.2 and C.3), and jobs whose duties include law enforcement, policing, crime prevention, security, criminal justice or private investigation, or that will or may involve unsupervised access to children under 16, developmentally disabled persons or vulnerable adults. SHRR 80-050 ties "security" to jobs needing a Washington security guard license and "private investigation" to licensed investigators.

When can a Seattle employer ask about criminal history?

Under SMC 14.17.020.B, an employer may run a criminal background check or ask for criminal history "only after the employer has completed an initial screening of applications or resumes to eliminate unqualified applicants." SHRR 80-090 defines that screening as a review to confirm the applicant has the minimum qualifications, and the Q&A says it may be a first review of written applications or a conversation about education and experience. The ordinance also bars advertising or applying any policy that "automatically or categorically excludes all individuals with any arrest or conviction record" (14.17.020.A). OLS lists "No felons need apply," "Clean criminal record" and "Must have clean driving record" as examples and discourages "applicants must successfully pass background check" unless the ad explains the Seattle process.

That is no longer the latest line in practice. RCW 49.94.010(1) bars any inquiry or background check until the employer finds the applicant otherwise qualified and makes a conditional offer, and the 2025 amendments apply to employers with 15 or more employees from July 1, 2026 and to smaller employers from January 1, 2027. RCW 49.94.020(5) says local laws giving applicants "lesser protections ... may not be enforced," so the state timing governs Seattle jobs; the state Act's coverage, exceptions and penalties are summarized on our Washington ban-the-box page.

What must a Seattle employer do before rejecting someone because of a record?

Seattle bars any tangible adverse action (rejecting an otherwise qualified applicant, or firing, suspending, disciplining, demoting or denying a promotion) based solely on an arrest record (14.17.020.C). For a conviction record, a pending charge or the conduct behind an arrest, the employer needs a legitimate business reason and must follow these steps from SMC 14.17.020.D to G and SHRR 80-070 to 80-120:

1. Test the reason. Believe in good faith that the conduct will harm fitness for the job or cause harm to people, property, business reputation or business assets, after considering all six factors: the seriousness of the offense or charge; the number and types of convictions or charges; the time elapsed, excluding incarceration; verifiable information on rehabilitation or good conduct; the duties of the job; and the place and manner in which it is done.
2. Tell the person what you are relying on. Give the entire background check result, explain which parts you rely on, give a fair chance to review it, name the outside agency that supplied it with its address and phone number, and tell the person they may dispute its accuracy (SHRR 80-120).
3. Use the fastest channel. Notice must go "in a reasonable manner most likely to reach the applicant or employee in the shortest amount of time" (SHRR 80-110). The Q&A suggests email, phone, mail or in person.
4. Hold the job at least two business days after that notice (14.17.020.G) so the person can correct, explain or provide verifiable information, such as statements from a probation officer, counselor or employer, or certificates of rehabilitation, education or treatment (SHRR 80-080).
5. Reconsider and document. OLS asks employers to keep the records relied on, the job description and the information the person provided. For employers covered by the amended state Act, the decision must then be in writing with an assessment of each factor (RCW 49.94.010(5)(c)).

What notices and posters does Seattle require?

• Workplace poster. Since April 1, 2016, SMC 14.17.025 has required employers to display the OLS poster where their employees work, in English and each employee's primary language, or to give it individually, on paper or electronically, to remote workers. The Fair Chance Employment notice is a panel on OLS's combined 2026 Seattle Labor Standards poster; OLS has also posted its 2027 version.
• Notice of investigation. If OLS opens an investigation, the employer must post or send employees OLS's notice form (14.17.045.B.2).
• Policy. Seattle does not require a written policy, but OLS publishes a sample Fair Chance Employment policy (June 2020) that lists the seven SHRR 80-120 steps.

What are the penalties, and who enforces them?

OLS investigates on complaint or on its own initiative, and an investigation must start within three years of the violation (14.17.045.C). If it finds a violation, the Director's Order sets the remedy under SMC 14.17.055:

• a penalty payable to each aggrieved applicant or employee of up to $500 for a first violation, $1,000 for a second and $5,000 for a third or later one, counting settlements and orders over the previous ten years;
• for retaliation, reinstatement or front pay, back pay with interest, liquidated damages up to twice the unpaid wages and a penalty of up to $5,000 to the aggrieved party;
• a civil penalty of $750, then $1,000, for willful poster violations, and fines of $500 to $1,000 for notice and retaliation failures, capped at $5,000 a year per type ($20,000 with retaliation).

These amounts rise with inflation every January 1 (14.17.055.A.1). The OLS January 5, 2026 memo to the City Clerk lists the 2026 figures for the Fair Chance Employment Ordinance as $709.90, $1,065.52, $1,419.80, $7,101.68 and $28,405.40, the inflation-adjusted versions of the code's $500, $750, $1,000, $5,000 and $20,000. Respondents may appeal to the Hearing Examiner within 15 days (14.17.060.B), and unpaid orders can lead to business license action and a bar on City contracts. There is no private right of action (14.17.090.D). Complaints go through the OLS complaint page or 206-256-5297.

Where is Seattle stricter than the state, and where is it weaker?

Staffing agencies and recruiters: who sends which notice?

The OLS Q&A says the law applies to "job placement, referral and employment agencies that place individuals in jobs within Seattle city limits," and that when an employer uses a third-party recruiting firm, "both may be responsible" for a violation, depending on what each did and their agreement. SHRR 80-040(5) adds that a temporary worker supplied by a staffing agency is the agency's employee for all purposes under the ordinance unless a contract says otherwise. In practice:

• Temporary and contract placements: the agency, as employer, runs the records notice, the two-day hold, the written decision and the FCRA notices for a report it ordered, and gives its Seattle workers the OLS poster. If the client contract shifts any of this, write that down.
• Direct-hire searches: the recruiter asks nothing about records; the client makes the conditional offer, orders any check, sends the notices and holds the job.
• Client instructions: a "no records" or "clean background only" requirement is a categorical exclusion under 14.17.020.A. Decline it in writing unless a law disqualifies people for the role.

If a candidate volunteers a record on a screen, leave it out of notes and submittals (see what not to write in interview notes), and under the amended state Act the employer must immediately send the written summary and the Attorney General's guide.

A copy-ready Seattle records notice

An example to adapt with counsel; send it by email and keep the position open from the date sent:

Subject: Information from your background check for [position]
Dear [name], we are considering not moving forward with your [conditional offer / promotion] because of information in the attached background check, which is the complete report we received. We are relying on [specific item, court and date]. The report was prepared by [agency name, address, phone]; you have the right to dispute its accuracy or completeness with them. Before we decide, you may correct or explain this information and send anything showing rehabilitation or good conduct, such as letters from a counselor, probation officer or past employer, or certificates of completed training or treatment. We will hold the position open until at least [date at least two business days from today] and will consider everything you send. Reply to [contact] or call [number]. This process follows Seattle's Fair Chance Employment Ordinance, SMC 14.17, and Washington's Fair Chance Act.

If a consumer reporting agency prepared the report, send the FCRA pre-adverse action notice and summary of rights with it, and the final notice afterwards; see the FCRA background check process and background check notification emails.

What about federal rules?

Title VII still applies to how records are used, although the EEOC rescinded its 2012 arrest and conviction records guidance on October 28, 2026. Seattle's six-factor test is local law and is untouched by that, and it already covers the Green factors from the 1975 Eighth Circuit case (the nature and gravity of the offense, the time since it and the nature of the job). Our fair chance hiring policy template can be adapted to the Seattle steps.

Summary: Seattle's Fair Chance Employment Ordinance at a glance

Spokane and Portland have their own rules for recruiters covering the Northwest: see Spokane's fair chance hiring ordinance, Portland's ban-the-box ordinance and the wider Washington background check laws.