Upcoming Changes to the Washington Fair Chance Act and What Employers Need to Know

Here is what you need to know about some important changes coming to the Washington Fair Chance Act: 

The changes in the Act will impact the adverse action process for WA employers, or anyone employing individuals in Washington. The effective date for these changes is: 

• July 1, 2026 for employers with 15 or more employees 

• January 1, 2027 for all employers 

The changes on the Integris portal will go into effect on July 1, 2026 for all employers.  You can read the entirety of House Bill 1747 here.  

Employers May Not: 

• Ask about an applicant's criminal background until the employer has made a conditional offer of employment. 

• Advertise or implement policies that categorically exclude individuals with criminal records. 

• Automatically exclude an individual from a position because they have a criminal record. 

• Reject an individual for not disclosing their criminal record prior to a conditional offer of employment. 

• Take adverse action based on a juvenile conviction. 

• Take adverse action based on arrest record (unless the matter of the arrest is still pending). 

• Take adverse action based on an adult conviction unless there is a "legitimate business reason" and without providing the individual notice and opportunity to respond. 

• Legitimate business reason is defined as the employer believing in good faith that the conviction will have a negative impact on fitness or ability to perform or cause harm or injury to others, property, or reputation. 

Employers Must: 

• Consider type of conviction, seriousness, timing, duties, etc. 

• Provide a specific written notice of rights if applicant volunteers info or when employer discloses that a background check will be required upon offer. 

  
  

Pre-Adverse Action: 

• Employer must notify the individual of the pre-adverse action. 

• Identify the information relied upon. 

• Hold the position open for at least 2 business days for the individual to respond or provide mitigating information. 

• (This mirrors the requirement in the Seattle Fair Chance Ordinance) 

  
  

Adverse Action: 

• If adverse action is taken, employer must provide: 

• A written explanation detailing the reason. 

• Assessment of the relevant statutory factors. 

• Consideration of the applicant’s rehabilitation, good conduct, work experience, education, and training. 

Exclusions (Requirements Do Not Apply To): 

• An employer hiring a person who will or may have unsupervised access to children, vulnerable adults or vulnerable persons. 

• Any employer, including a financial institution, who is expressly permitted or required under any federal or state law to consider information about an applicant's or employee's criminal record for employment purposes. 

• Employment by a general or limited authority Washington law enforcement agency or criminal justice agency. 

• Non-employee volunteers. 

• Any entity required to comply with the rules or regulations of a self-regulatory organization of the securities and exchange act of 1934. 

• An employer with respect to a position entailing work under a federal contract that specifically prohibits people with criminal records from working under that contract. 

Additional Considerations 

FCRA Requirements: 

• Remember that the Fair Credit Reporting Act (FCRA) adverse action requirements apply to all adverse employment decisions based in whole or in part on the results of a background check, including termination, suspension, discipline, demotion, or denying promotion to current employees. 

• If you run regular background checks on current employees, this is an important distinction, as well as when employees disclose criminal records. 

• The FCRA requires employers to wait a minimum of 5 business days before making a final hiring decision (with the exception of some jurisdictions with longer waiting periods), however the WA Act specifies keeping the position open for 2+ business days. 

  
  

Voluntarily Disclosed Information: 

• The Act now expands requirements in the event an applicant volunteer's information to the employer related to criminal records. 

• In this event, the employer must inform the applicant in writing of the requirements of certain subsections in the Act and provide the applicant with the attorney general's Washington Fair Chance Act guide for employers and job applicants. 

• It does not appear that the Fair Chance Act guide has been updated yet, but Integris will make it available as the effective date approaches. 

  
  

Individualized Assessments: 

• If you are not already in the practice of conducting individualized assessments, now would be a good time to start doing this so your process is seamless when the new changes take effect in July 2026. 

• The Adverse Action step will now require that you detail the findings of the assessment. 

  
  

Statutory Penalties: 

• Statutory penalties may include: 

• Up to $1,500 for a first violation. 

• $3,000 for a second violation. 

• $15,000 for subsequent violations, per aggrieved party. 

• It’s important to note that the Act allows the attorney general to retain the penalty in the event of a statutory violation, even if there is no aggrieved person 

As these changes approach, it’s critical to review your current hiring and screening processes to ensure compliance well ahead of the deadlines. At Integris, we’re committed to keeping you informed, helping you stay compliant, and making updates to our platform that reflect these new requirements. Please don’t hesitate to reach out with questions, we’re here to help.