Philadelphia continues to lead the nation in fair hiring reform. With new amendments to its Fair Criminal Record Screening Standards Ordinance (FCRSSO)—better known as the Philadelphia Fair Chance Hiring Ordinance or “Ban-the-Box” – the city has expanded protections for job applicants with criminal records.
Signed into law on October 8, 2025, and taking effect January 6, 2026, these updates further restrict how employers can use criminal background checks during the hiring process. For HR teams and business owners, the changes highlight the growing importance of employment law compliance at both the state and local levels.
Background: Understanding Philadelphia’s Fair Chance Ordinance
Philadelphia’s Fair Chance Ordinance was designed to promote fair employment opportunities by limiting when and how employers can inquire about an applicant’s criminal history. Pennsylvania already restricts employers from considering non-job-related misdemeanors and felonies and forbids the use of expunged or “limited access” records.
However, Philadelphia’s ordinance goes further—prohibiting employers from considering misdemeanor and felony convictions beyond seven years, and requiring employers to conduct an individualized assessment before rejecting a candidate based on criminal history. It also mandates specific notice procedures and grants applicants a private right of action if the law is violated.
The 2025 amendments add new layers of clarity, protection, and responsibility, emphasizing fair chance employment practices as a cornerstone of the city’s inclusive workforce strategy.
Key Clarifications Under the New Amendments
Employers often struggled with ambiguities in the original ordinance. The latest update provides greater definition and detail to ensure consistent application across industries.
1. Clearly Defined Legal Terms
The amendments now define critical terms such as felony, misdemeanor, summary offense, and incarceration. These definitions bring greater precision to compliance and help standardize how background screening policies are applied.
2. Expanded Definition of Adverse Action
The definition of “adverse action” has been broadened to include a wider range of employment-related decisions—not just hiring or termination. This means that any employment decision influenced by criminal history could fall under the ordinance’s requirements.
3. New Requirements for Job Advertisements
Any job posting that mentions a background check must now also include a statement that an individualized assessment will take place. This ensures transparency early in the hiring process and prevents discrimination through job listings.
4. Specific Examples of Rehabilitation Efforts
Employers are already required to consider rehabilitation during evaluations, but the amendments clarify what that means—such as completion of education, training, or treatment programs. This provides a fairer framework for evaluating applicants’ personal growth.
5. Clarified Timing for Applicant Response
Employers must give applicants 10 business days to dispute inaccurate records or provide additional context before making a final adverse decision. This correction ensures fair consideration and aligns with broader fair hiring best practices.
Expanded Employer Obligations and Prohibited Practices
Beyond clarifications, the new Philadelphia fair chance hiring amendments impose stricter limits on how criminal history can be used in employment decisions.
1. Shortened Lookback for Misdemeanors
Employers can no longer consider misdemeanor convictions more than four years old, excluding incarceration periods. This significantly narrows the timeframe for permissible background consideration.
2. Ban on Summary Offenses
Employers are now prohibited from considering summary offenses, the lowest level of Pennsylvania offenses, in any hiring or employment decision.
3. Treatment of Sealed and Expunged Records
If a background check reveals sealed or expunged records, employers must disregard them. Applicants can present evidence of sealing or expungement, and employers must treat those records as off-limits for evaluation.
4. Enhanced Pre-Adverse Action Notices
Before taking any adverse action, employers must provide:
- A summary of rights under the Philadelphia Fair Chance Ordinance
- A statement affirming that rehabilitation and mitigation will be considered
- Instructions for submitting additional evidence or context
The Philadelphia Commission on Human Relations (PCHR) is expected to release compliant templates, but employers should begin preparing their own documentation now.
5. Mandatory Responses to Complaints
If an applicant files a complaint with the PCHR, employers must provide a written explanation detailing the reasoning behind their decision and how the criminal record was considered.
6. Strengthened Anti-Retaliation Protections
Employers are now explicitly prohibited from retaliating against applicants or employees who exercise their rights under the ordinance or support others in doing so.
Why the 2025 Amendments Matter for Employers
These changes reflect a nationwide shift toward fair chance hiring practices—laws that prevent blanket disqualification of individuals with criminal records. Philadelphia’s expanded ordinance represents one of the most comprehensive frameworks in the United States.
For employers, noncompliance can result in penalties, investigations, and lawsuits. More importantly, failing to comply can damage brand reputation and undermine diversity, equity, and inclusion (DEI) efforts.
Businesses operating in Philadelphia – whether large corporations or small local employers—should take immediate steps to align hiring processes with these new employment law compliance standards.
Compliance Checklist: Preparing for January 2026
To meet the requirements of the amended Philadelphia Fair Chance Hiring Ordinance, employers should implement the following best practices:
- Review Job Applications and Hiring Forms
Eliminate unlawful questions about criminal records and revise forms to comply with notice requirements. - Update Workplace Postings and Digital Materials
Ensure company websites, job boards, and HR portals reflect fair chance hiring commitments and compliance notices. - Train HR and Hiring Personnel
Conduct training for recruiters, managers, and third-party screening providers on lawful background check procedures and individualized assessment requirements. - Revise Background Check Procedures
Confirm that screening reports exclude misdemeanor convictions more than four years old, including sealed, expunged, or outdated convictions and that decisions are supported by job-related justifications. - Audit Adverse Action Processes
Update templates for pre-adverse and adverse action notices to include all newly required information. - Document Individualized Assessments
Keep detailed records of every case where criminal history influenced a hiring decision to demonstrate compliance if challenged. - Monitor PCHR Guidance
Stay alert for forthcoming guidance and official forms from the Philadelphia Commission on Human Relations.
The Bigger Picture: Fair Chance Hiring as a Business Advantage
While these changes require effort, fair chance employment is more than just a compliance issue—it’s a strategic opportunity. Companies that adopt inclusive hiring practices benefit from access to a wider talent pool, stronger community relations, and enhanced brand reputation.
By implementing compliant criminal background check procedures and fair evaluation policies, Philadelphia employers can lead the way in building a more equitable workforce.
FAQ 1: Does the Philadelphia Fair Chance Hiring Ordinance Apply to Employers Outside the City?
Yes — it can. Even if your company is headquartered outside Philadelphia, the ordinance applies if:
- The job is performed within Philadelphia,
- The position reports to a Philadelphia location, or
- The work involves regular activity inside the city (for example, remote or hybrid work from a Philadelphia residence).
If your company posts job listings, conducts interviews, or employs workers who operate within the city limits, you must comply with the ordinance. However, if the role is entirely outside Philadelphia and has no connection to city-based operations, the ordinance generally does not apply.
Tip: Multi-location employers should adopt the most protective fair chance policy across all operations to reduce compliance risks.
FAQ 2: Does the Ordinance Apply When the Employer and Worksite Are Outside Philadelphia, but the Applicant Lives in Philadelphia?
In most cases, no. The Philadelphia Fair Chance Hiring Ordinance is triggered by where the work is performed, not where the applicant resides.
If both the employer and the worksite are outside city limits, the ordinance does not apply—even if the applicant lives in Philadelphia.
However, if that same applicant would perform their work remotely from Philadelphia, the ordinance could apply, since the job duties occur within the city.
In summary:
| Scenario | Coverage |
|---|---|
| Applicant lives in Philadelphia, job and worksite outside city | ❌ No |
| Employer outside city, but work performed in Philadelphia (including remote work) | ✅ Yes |
| Job and employer inside city | ✅ Yes |
Employers should carefully assess where the work will physically take place and document that determination as part of their employment law compliance strategy.
Conclusion: Act Now to Stay Ahead of Compliance
The 2025 amendments to Philadelphia’s Fair Chance Ordinance mark a significant evolution in fair chance hiring and criminal background check regulation. Employers have until January 6, 2026, to review, update, and train on new requirements—but proactive preparation now will prevent costly mistakes later.
By embracing fair chance hiring and strengthening compliance programs, businesses can build a more inclusive workforce and position themselves as leaders in equitable employment practices.