The Expanded Fair Chance Act (EHB 1747), passed in 2025, takes effect on July 1, 2026, for employers with 15+ employees. All remaining employers must comply by January 1, 2027.
This law significantly expands restrictions on how employers may use criminal history in employment decisions. Employers should proactively review and update hiring, promotion, discipline, and termination practices to ensure compliance.
Key Prohibitions for Covered Employers:
Employers may not
- Obtain criminal records before first extending a conditional job offer.
- Taking a tangible adverse action based on
- Arrest record (with a narrow exception for pending adult charges),
- Juvenile conviction record,
- Adult conviction record, unless a legitimate business reason is clearly established.
Expanded Obligations for Employers:
Employers must provide a pre-adverse action notice with information on the record they rely on for the pending decision. In addition, employers must provide
- An additional two business days for the applicant or employee to correct or explain the record.
- A written decision with specific documentation on the reason(s) for the final adverse tangible decision, including assessment of factors related to the criminal records, duties of the position, and consideration of all relevant records.
Enforcement and Penalties:
The Attorney General may use a stepped enforcement approach for the first three violations. Penalties are applied per aggrieved job applicant or employee for each violation.
Additional Allowances and Exception:
- Employers may disclose their intent to provide a conditional job offer subject to a criminal background check.
- Applicants/employees may voluntarily disclose their criminal background at any point during the application process.
- Employers subject to federal contracts requiring criminal background checks are exempt.
