Philadelphia Fair Chance Hiring Law Update: What Employers Need to Know

Philadelphia employers that conduct criminal background checks should review their hiring and adverse action procedures carefully following significant amendments to the City’s Fair Criminal Records Screening Standards Ordinance (FCRSSO), commonly known as the Fair Chance Hiring Law. The amendments became effective January 6, 2026, and are among the most restrictive fair-chance hiring requirements in the country. The Philadelphia Commission on Human Relations (PCHR) has also issued supplemental guidance to assist employers with compliance.

The updated PCHR notice summarizing the amendments can be found here:

https://www.phila.gov/media/20260428133610/Fair-Criminal-Records-Screening-Standards-Ordinance-amendments-2026.pdf

Additionally, employers should ensure they are posting the current Fair Chance Hiring poster:

https://www.phila.gov/media/20240326142036/V6-Fireball-Handout-fairchance-E-S.pdf

Narrower Criminal History Review

One of the most significant changes is the limitation on what conviction records employers may consider during the hiring process. Unless otherwise required by federal or state law, employers may now consider only:

• Felony convictions occurring within the previous seven years, measured from the later of the conviction date or release from incarceration.
• Misdemeanor convictions occurring within the previous four years, measured from the later of the conviction date or release from incarceration.

Employers are prohibited from considering summary offense convictions altogether. The amendments also reinforce existing restrictions on the use of sealed or expunged records.

Expanded Notice Requirements

The amendments require employers to provide additional information before conducting a criminal background check. Any disclosure regarding a criminal history review must now inform applicants that the employer will conduct an individualized assessment of any criminal record in relation to the specific position, job duties, and business requirements. Job advertisements that reference background checks may also trigger these requirements.

More Detailed Individualized Assessments

Philadelphia has long required employers to evaluate criminal history on a case-by-case basis rather than relying on blanket exclusions. The 2026 amendments expand these obligations.

Before taking adverse action based on criminal history, employers must be prepared to demonstrate that the applicant or employee presents an “unacceptable risk” to the business or to public safety. Employers should document the relationship between the criminal conduct, the nature of the position, and the specific risks associated with the role. The amendments also expressly require employers to consider evidence of rehabilitation, mitigation, or inaccuracies in the criminal record.

Enhanced Pre-Adverse Action Procedures

The ordinance now imposes more detailed procedural requirements when an employer is considering denying employment or taking other adverse action based on criminal history.

Employers must provide written notice that includes:

• A summary of rights under the Fair Chance Hiring Law.
• The criminal history information relied upon.
• Copies of documents used in the decision-making process.
• A statement that evidence of rehabilitation, mitigation, or errors in the record will be considered.
• Clear instructions explaining how the individual may submit additional information.
• Notice that the individual has ten days to respond.

Because these requirements overlap with federal Fair Credit Reporting Act (FCRA) obligations when a consumer reporting agency is used, employers should review their adverse action workflows to ensure both sets of requirements are satisfied.

Increased Retaliation Risks

The amendments also strengthen anti-retaliation protections. If an employer takes adverse action against an applicant or employee within 90 days after the individual exercises rights under the ordinance, investigators may presume retaliation occurred. Employers may rebut this presumption, but doing so will require evidence supporting a legitimate, good-faith business reason for the action.

What Employers Should Do Now

Philadelphia employers should update criminal history screening policies, application disclosures, recruiting materials, adverse action notices, and training programs. Organizations should also confirm that recruiters, hiring managers, and background screening partners understand the new conviction lookback limitations and expanded individualized assessment requirements.

Given the ordinance’s private right of action and increasingly detailed compliance obligations, even technical violations can create legal exposure. Employers that hire or employ workers in Philadelphia should review their fair-chance procedures now to ensure full compliance with the City’s 2026 requirements.

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The foregoing content is not given as legal advice but is instead offered for informational purposes only. Fair Screen is not a law firm and therefore cannot offer legal advice. We always recommend speaking with an attorney who is knowledgeable about your company’s individual circumstances prior to making any hiring decisions or policy changes. Fair Screen makes no assurances regarding the accuracy or completeness of this content.