Philadelphia Releases Initial Guidance For Employers On Amended Fair Chance Hiring Law

Philadelphia has released its first official guidance on major amendments to the city’s Fair Criminal Record Screening Standards Ordinance (FCRSSO), providing employers with an updated summary of rights notice and initial clarifications on compliance. The new rules, which significantly alter how businesses can use criminal records in hiring decisions, took effect on January 6, 2026.

The amendments, signed into law in October 2025, expand the scope of the city’s “ban-the-box” law to cover independent contractors and gig economy workers, shorten the lookback period for certain convictions, and codify a mandatory individualized assessment process. The new guidance from the Philadelphia Commission on Human Relations is the first step in clarifying enforcement priorities for these complex new requirements that impact any business hiring for work performed within the city.

For many small and mid-sized businesses, these changes represent more than a simple policy update; they demand a fundamental redesign of the hiring workflow. The new law introduces multiple procedural tripwires, from the mandatory 10-day waiting period before an adverse action to the documented consideration of a candidate’s rehabilitation evidence. This isn't just about updating a form, but about retraining hiring managers, creating new documentation standards, and ensuring every step is compliant to avoid significant legal and financial risk, including civil penalties up to $2,000 per violation and private lawsuits. The operational complexity can be daunting for lean teams.

This is precisely the kind of operational challenge where we see clients benefit from structured business process reengineering. Mapping out the entire hiring journey, from the language in a job posting to the final offer letter, is critical to building in the new compliance checkpoints without creating costly bottlenecks or exposing the company to liability. A proactive review can turn a regulatory burden into a more standardized and equitable hiring system. We help companies navigate these complex local regulations to ensure their practices are both fair and legally sound. To review your current processes, contact C&S Finance Group LLC at csfinancegroup.com.

The most tangible part of the new guidance is an updated FCRSSO summary of rights notice, which employers are required to provide to applicants. However, legal analysts from the firm Littler have noted that the Commission’s website still hosts older, conflicting versions of the notice from 2021 and 2024, which could create confusion for employers attempting to comply. The firm reported it has reached out to the Commission for clarification on which notice should be used.

One of the most significant changes in the underlying law is the shortening of the lookback period for criminal records. Employers in Philadelphia may now only consider misdemeanor convictions from the last four years, a reduction from the previous seven-year limit. The lookback period for felony convictions remains at seven years. This change requires businesses and their background check providers to adjust their screening criteria immediately.

Furthermore, the ordinance’s protections have been explicitly extended beyond traditional employees. The law now covers all individuals “employed or permitted to work at or for” a private employer in Philadelphia. This includes independent contractors, transportation network drivers, and other gig economy workers, a critical expansion that brings a large segment of the modern workforce under the law’s purview for the first time.

Central to the amendments is the codification of a detailed individualized assessment that employers must conduct before rescinding a job offer based on a criminal record. The law requires employers to consider the nature of the offense, the time that has passed, and the specific duties of the job in question. The goal is to determine if the applicant’s record poses a “specific unacceptable risk” to the business, moving beyond a blanket policy against hiring individuals with certain records.

A key component of this assessment is the mandatory consideration of rehabilitation evidence. If a candidate provides it, the employer must formally address evidence such as completion of drug or alcohol treatment programs, job training or post-secondary education, community service, a consistent work history since the conviction, or holding a relevant occupational license. This provision places a new burden on employers to document their review of mitigating information.

The amended law also carries significantly stronger enforcement mechanisms. It establishes a 90-day rebuttable presumption of retaliation if an employer takes adverse action against an applicant who challenges a hiring decision under the ordinance. In addition to potential civil penalties of up to $2,000 per violation issued by the Philadelphia Commission, the law grants individuals a private right of action, allowing them to sue employers directly in court for damages.

Before making a final decision not to hire someone based on their record, employers must follow a strict pre-adverse action process. This includes providing the applicant with a copy of their criminal history report, the new summary of their rights, and a statement that the employer will consider evidence of errors or rehabilitation. The employer must then wait 10 business days to allow the applicant time to provide an explanation or mitigating evidence before a final decision is made.

While Philadelphia’s ordinance is one of the more comprehensive in the nation, it is part of a broader trend. Numerous states, including California, New York, Illinois, and New Jersey, have enacted their own fair chance hiring laws, creating a complex patchwork of regulations for multi-state employers to navigate.

With this initial guidance now public, Philadelphia employers should be actively reviewing and updating all hiring documents, including job applications, background check authorizations, and adverse action notices. Businesses should also anticipate increased scrutiny from the Commission and ensure that all personnel involved in the hiring process are trained on the new, multi-step compliance requirements. Further clarification from the Commission on the official notice and other implementation details will be critical for employers to watch for in the coming months.