NYC Fair Chance Act Rules Now in Effect: What Employers Hiring in New York City Need to Change
The amended NYC Fair Chance Act rules from the New York City Commission on Human Rights took effect on October 30, 2026. The Commission first proposed these changes in July 2024 and adopted them as final rules this fall. The underlying law is the same, but the rules now spell out in much more detail how the Commission expects employers to handle criminal history, for job applicants and for current employees.
The timing is worth noting. One day earlier, on October 29, the EEOC rescinded its 2012 federal guidance on arrest and conviction records. That federal change does not touch state and local fair chance laws. In New York City, the rules just got more specific, not less.
What changed in the NYC Fair Chance Act rules
Five business days, not three. Applicants now get at least five business days to respond after they receive the Fair Chance notice and a copy of the criminal history information. The employer must hold the position open during that window.
Current employees are covered. The Fair Chance process applies when an employer considers action based on a pending case or conviction that arises during employment. Employers may place the employee on leave during the review, but the rules presume that leave should not run longer than five business days.
A clearer list of per se violations. Examples include mentioning background checks in job postings, using applications that reference criminal history before a conditional offer (even with a disclaimer), running pre-offer online searches for a candidate's criminal history, and failing to redo the analysis after a candidate points out a material error.
A broader definition of criminal history. It now covers convictions, non-convictions, and pending cases, with specific rules on how certain dispositions are treated.
Narrower exceptions. The direct relationship exception requires a clear connection between the conduct and specific job duties, and the seriousness of an offense alone does not establish an unreasonable risk.
A more detailed written analysis. The Fair Chance notice must show the facts the employer considered for each factor and the basis for its conclusion, along with a complete copy of the information relied on.
Why this matters to employers
Most of the risk under the amended rules comes from process, not from the final hiring decision. A background check reference on a careers page, a manager who searches a candidate's name before making an offer, or a decision letter sent on day three instead of day five can each create exposure, even when the employer had a sound reason for its decision.
The NYC process also runs alongside the federal Fair Credit Reporting Act. When an employer uses a background check report from a consumer reporting agency, FCRA pre-adverse action and adverse action steps still apply. The two timelines need to fit together so that nothing is skipped and no decision is finalized too early. New York State's Article 23-A factors also continue to apply to pre-employment convictions.
Employers based elsewhere should pay attention too. If you hire for positions in New York City, these rules apply to those hires.
Practical steps to take now
Audit job postings, careers pages, and applications for any criminal history questions or background check language, and remove them unless a specific exemption applies.
Confirm the sequence: conditional offer first, then the criminal history check. Remind recruiters and hiring managers not to search candidates online for criminal history before an offer.
Update your Fair Chance notice and analysis templates so they document the facts considered for each factor, and set your calendar to five business days.
Build a written process for current employees with new pending cases or convictions, including how leave is handled during the review.
Re-run the analysis whenever a candidate or employee identifies an error in the information you relied on.
Coordinate with your background screening provider so FCRA notices and NYC Fair Chance steps happen in the right order.
How UBS can help
Fair chance compliance works best when your screening workflow, your notices, and your timelines are built to work together. Unique Background Solutions is an FCRA-compliant consumer reporting agency that helps employers line up background check processes with federal requirements and state and local laws, including New York City's. If you would like a second look at your NYC hiring process, contact our team at www.uniquebackground.com.
This post is general information, not legal advice. Employers should consult their own counsel about how these rules apply to their specific situation.
Comments