Washington Expands Fair Chance Act: Key Compliance Steps for Employers

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Washington State is implementing major updates to its Fair Chance Act, further limiting when and how employers can use criminal background checks in the hiring process. These changes align statewide rules more closely with Seattle’s Fair Chance Employment Ordinance and will have a direct impact on HR teams, hiring managers, and screening workflows across the state.

The new requirements take effect in 2026 and 2027, but now is the ideal time to assess your compliance strategy. In this guide, CoreScreening breaks down the updates and provides actionable steps to prepare your organization.

For additional information on compliant background screening solutions, visit our Background Check Services page.


What’s Changing Under Washington’s New Fair Chance Act?

Earlier this year, Governor Bob Ferguson signed HB 1747, expanding applicant and employee protections. The rollout dates are:

  • July 1, 2026 – Employers with 15+ employees
  • January 1, 2027 – Employers with fewer than 15 employees

These updates significantly impact recruitment timelines and screening practices.


New Rules on When Background Checks Can Occur

Under the amended law, employers cannot conduct a criminal background check until after issuing a conditional job offer.

This is a more restrictive timeline than the current requirement, which only mandates confirming basic job qualifications before screening.

Employers should begin auditing their applicant tracking systems and onboarding workflows now. If you partner with a screening provider, verify that their processes support conditional-offer timing. CoreScreening provides tools and automation to help ensure compliance—learn more at corescreening.com.


Restrictions on How Criminal History Can Be Used

The new law introduces strict guidance on the use of background check results:

1. Prohibited Reasons for Adverse Action

Employers may not rescind a job offer or discipline an employee based on:

  • Arrest records
  • Juvenile conviction records

The only exception:
If the person is currently out on bail or on their recognizance while awaiting trial.

2. Requirements for Adult Convictions

For adult conviction records, employers must have a legitimate business reason to take adverse action. Before moving forward, employers must:

  1. Notify the applicant or employee in writing of the potential adverse action.
  2. Hold the position for two business days to allow the individual to respond or provide mitigating information.
  3. Consider rehabilitation, good conduct, work experience, education, and training.

If the employer ultimately decides to take action, a written explanation must include:

  • The impact of the conviction on business operations or the role
  • Documentation of the individualized assessment

These steps closely mirror requirements already familiar to employers operating in Seattle.


Enforcement and Penalties

The Washington Attorney General will continue enforcing the Fair Chance Act, but penalties are substantially higher. Fines now range from:

  • $1,500 to $15,000 per violation

This makes early preparation essential, especially for multi-location employers with large applicant volumes.


Understanding the Difference Between Washington’s Law and FCRA

While overlapping, the Washington law and the Fair Credit Reporting Act (FCRA) differ in several critical areas:

  • FCRA requires employers to provide a copy of the consumer report and the “Summary of Rights” before taking adverse action.
  • Washington now requires written notice only, while FCRA allows oral or written notice.
  • Washington mandates additional disclosures not required under FCRA.
  • FCRA includes specific requirements for the disposal of consumer report information.

Employers must comply with both state and federal laws. To streamline compliance, CoreScreening offers FCRA-compliant tools and customizable adverse action workflows.


Don’t Forget Title VII and Local Ordinances

  • Title VII (EEOC) requires individualized assessment to avoid discriminatory impact in background check decisions.
  • Seattle’s Fair Chance Employment Ordinance remains in effect and may impose stricter requirements for Seattle-based roles.

Employers should ensure that their policy documents reflect all applicable federal, state, and local rules.


What Employers Should Do Now

Here are five steps to prepare before the new law takes effect:

  1. Review your hiring and background screening processes to ensure timing, documentation, and workflows align with conditional-offer screening.
  2. If job postings disclose future background checks, ensure applicants receive:
    • Written notification of RCW 49.94.010(2)
    • The Washington Attorney General’s Fair Chance Act Guide
  3. Remove unlawful criminal history questions from applications and train hiring staff on compliant interviewing.
  4. Update pre-adverse and adverse action notices to reflect Washington’s new written-notice requirements.
  5. Coordinate with your background check provider to ensure they support the revised compliance framework.
    CoreScreening’s team can assist—learn more at corescreening.com.

Conclusion

Washington’s expanded Fair Chance Act introduces sweeping changes that will require updates to hiring practices, documentation, and screening timelines. Preparing now will reduce risk, avoid costly penalties, and ensure a smoother transition in 2026 and 2027.

CoreScreening is here to support you with compliant, customizable screening solutions. To learn more or request assistance, visit corescreening.com.


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