Introduction
Philadelphia has again expanded its Fair Criminal Record Screening Standards Ordinance, commonly referred to as the “Ban the Box” law. These amendments, enacted in October 2025 and effective January 6, 2026, materially alter how employers and background screening providers must manage criminal record information when making employment decisions.
The new requirements are not minor procedural changes. They reshape the timing, content, and substance of how employers evaluate criminal records, issue pre-adverse action notices, and communicate with candidates. The Philadelphia amendments also establish one of the most aggressive retaliation presumptions in the nation, underscoring the importance of meticulous compliance and documentation.
Employers who hire, contract, or operate within the City of Philadelphia must now move quickly to assess their policies, retrain personnel, and align technology systems before the effective date.
The Evolution of Philadelphia’s Fair Chance Framework
Philadelphia was among the first major cities to restrict when employers could inquire into criminal history. Over the past decade, the city has repeatedly expanded its protections, broadening both coverage and obligations. The 2025 amendments represent the most significant expansion to date and signal a continuing legislative commitment to reentry and rehabilitation principles.
The revised ordinance applies to all private employers with ten or more employees, as well as to contractors and staffing entities that conduct or rely upon criminal background investigations.
Key Substantive Changes
1. Reduced Look-Back Period for Misdemeanor Convictions
Employers may now consider misdemeanor convictions only if the conviction or release from incarceration occurred within the previous four years. The prior standard permitted a seven-year look-back. The seven-year limit remains in place for felony convictions.
This change requires employers to review adjudication matrices, vendor filters, and adjudication logic within automated systems to ensure that older misdemeanor data are not considered in any employment decision.
2. Exclusion of Summary Offenses
Employers are now prohibited from considering summary offenses altogether. These are the lowest level of offenses under Pennsylvania law and often include minor traffic or disorderly conduct matters. Any report or adjudication process that relies upon summary offenses must be modified to suppress these data points from review.
3. Treatment of Sealed and Expunged Records
Employers must disregard sealed, expunged, or limited-access records. If an expunged or sealed record appears in a background report or in a driver record from the Pennsylvania Department of Transportation, the employer must allow the individual to provide proof of sealing or expungement before making a final decision.
Because record systems are not always updated consistently, employers should develop a process to receive and document applicant-supplied evidence of expungement and should ensure that no adverse action is taken until this review is complete.
4. Expanded Notice and Rebuttal Requirements
Before taking any adverse action based in whole or in part on criminal history information, employers must now provide the individual with:
- A plain-language summary of rights under the Philadelphia ordinance.
- A statement that the employer will consider evidence of error, rehabilitation, or mitigation.
- Clear instructions on how to provide that information directly to the employer.
- Illustrative examples of rehabilitation evidence, including completion of educational or treatment programs, community service, relevant work history, or active professional licensure.
Employers must then allow the individual at least ten business days to respond before finalizing any adverse decision.
This new framework mirrors and exceeds the federal Fair Credit Reporting Act’s pre-adverse action process, introducing additional documentation and timing requirements specific to Philadelphia.
5. Clarified Definition of Adverse Action
The ordinance now defines adverse action broadly to include any employment decision negatively influenced by criminal history information, not limited to hiring denials. This includes terminations, suspensions, demotions, and decisions affecting contract or assignment eligibility.
6. Notice in Job Advertisements
If an employer chooses to reference background investigations in a job posting or offer, the statement must also include a notice that any consideration of criminal records will involve an individualized assessment based on the specific record and the duties of the position.
This seemingly minor provision introduces new risks, as many job board templates and automated postings may not currently contain compliant language.
7. New Anti-Retaliation Presumption
Perhaps the most consequential addition is a rebuttable presumption of retaliation whenever an employer takes an adverse action within ninety days of an individual exercising their rights under the ordinance. To overcome this presumption, the employer must demonstrate by a preponderance of evidence that the decision was based on legitimate business reasons unrelated to the protected activity.
This provision heightens the need for detailed recordkeeping and contemporaneous documentation of all employment decisions.
Operational Implications for Employers
The Philadelphia amendments affect each stage of the employment process—from recruitment to onboarding and beyond.
- Recruitment and Advertising
- Ensure all job postings that reference background investigations contain compliant individualized-assessment language.
- Review internal and third-party recruitment templates for consistency.
- Conditional Offer and Disclosure
- Revise conditional offer letters and related forms to reflect updated notice requirements.
- Confirm that timing of background investigations remains compliant with the conditional-offer rule.
- Adjudication and Decision-Making
- Update adjudication guidelines to reflect the four-year misdemeanor limit and prohibition on summary offenses.
- Verify that sealed or expunged records are automatically suppressed or appropriately managed.
- Train adjudicators on new notice content, rehabilitation examples, and documentation expectations.
- Pre-Adverse and Adverse Action Communications
- Update templates to include Philadelphia-specific rights language.
- Implement workflow steps to ensure that the ten-business-day waiting period is observed before a final decision.
- Recordkeeping and Retaliation Prevention
- Maintain a detailed record of all individualized assessments and the rationale for each employment decision.
- Establish an internal review process for any adverse action taken within ninety days of a candidate or employee exercising rights under the ordinance.
Strategic Considerations
The Philadelphia amendments illustrate an accelerating pattern of local governments imposing unique fair-chance obligations on employers. National employers must therefore develop jurisdiction-specific workflows that integrate seamlessly with federal and state compliance requirements.
Failure to adapt quickly can result in significant legal exposure. Civil penalties, reputational harm, and the administrative cost of responding to Commission inquiries can far exceed the expense of proactive compliance.
Employers should also coordinate closely with their background investigation partners to confirm that report content, adjudication matrices, and candidate communications align with the Philadelphia standard. Automated systems that flag disqualifying convictions based solely on age or category without individualized analysis now pose substantial compliance risk.
Preparing for Compliance
Employers are advised to take immediate action to ensure readiness by the January 6, 2026 effective date. Recommended steps include:
- Conducting a comprehensive audit of all hiring and screening procedures.
- Revising documentation, including conditional offers, disclosures, and notice templates.
- Providing targeted training for recruiters, human resources professionals, and adjudication teams.
- Updating online application portals and applicant tracking systems to ensure proper timing and disclosures.
- Establishing an internal review protocol for potential retaliation claims.
The complexity of modern background investigation regulation demands a coordinated approach that integrates federal, state, and local requirements into a unified, legally defensible process.
Conclusion
The Philadelphia amendments transform what was once a timing restriction into a comprehensive procedural framework governing the use of criminal history information. They require employers to demonstrate fairness, transparency, and individualized judgment at every stage of the hiring process.
By updating policies, retraining personnel, and working closely with trusted background investigation partners, employers can ensure compliance while maintaining the integrity and efficiency of their hiring programs.
The effective date of January 6, 2026, will arrive quickly. Employers who act now will protect their organizations, strengthen compliance, and demonstrate their commitment to fair and responsible hiring practices.
If you have any questions regarding your compliance program, feel free to reach out for a complimentary compliance check-up at kprendergast@thuro.ai.
About the Author
Kevin Prendergast
President, Thuro
Kevin Prendergast is the President of Thuro, a nationally recognized background investigation firm that has provided investigative and compliance solutions to employers for more than seventy years. With more than thirty years of experience in the background screening industry, Mr. Prendergast has led large-scale compliance initiatives for Fortune 500 organizations, professional services firms, and regulated employers across the United States.
Under his leadership, Thuro has developed an attorney-led investigative model that integrates advanced technology, strict adherence to legal standards, and personalized investigative analysis to ensure accuracy, fairness, and compliance. Mr. Prendergast is a frequent author and speaker on employment law compliance, the Fair Credit Reporting Act, and emerging legislation affecting the background screening industry.
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