2025 Legal Updates for Employers: Fair Chance Act (HB 1747)

July 23, 2025   Print PDF

By Krista Slosburg | Related Practice: Employment

Washington employers will soon be more limited in how they can consider criminal records of not just job applicants, but also existing employees. These laws go into effect on July 1, 2026, for employers with 15 or more employees, and on January 1, 2027, for employers with fewer than 15 employees.

First, while it had been the case that employers could not inquire about an applicant’s criminal record until after the employer initially determined the applicant was qualified for the position, now the law requires that an employer must also make an offer of employment conditioned on obtaining the applicant’s criminal record  before obtaining the information. To ensure compliance, employers should not include any questions about criminal history on job applications, should not ask about criminal history during job interviews, and should only request criminal history via a background check after they have determined the applicant is qualified and taken the additional step of offering employment, conditioned on obtaining criminal records. Employers cannot implement any policies or practices that automatically exclude those with criminal records from any position and may not reject applicants for failure to disclose a criminal record before receiving a conditional offer of employment.

With respect to arrests, employers may not carry out a tangible adverse employment action based on an applicant’s or employee’s arrest record alone (excluding an adult arrest in which an individual is out on bail or released on their own personal recognizance pending trial). Similarly, they cannot carry out a tangible adverse employment action based on a juvenile conviction record.

Tangible adverse employment action is a defined term that includes a decision to reject an otherwise qualified applicant, or to terminate, suspend, discipline, demote, or deny promotion to an employee.

Importantly, employers are now limited in what actions they can take based on the results of a criminal history check that reveals conviction records and must also comply with certain notice requirements. Again, these rules apply not just to applicants, but also to existing employees:

  • An employer must have a legitimate reason for taking a tangible adverse employment action based solely on an applicant or employee’s adult conviction record.
  • Legitimate business reason is a defined term that essentially means the employer believes in good faith that the nature of the underlying criminal conduct will:
    • Have a negative impact on fitness or ability to perform the position;
    • Harm or cause injury to people, property, business reputation, or business assets, and the employer has considered and documented the following factors:
      • Seriousness of the underlying conduct;
      • Number and types of convictions;
      • Time that has elapsed since the conviction, excluding periods of incarceration;
      • Any verifiable information related to rehabilitation, good conduct, work experience, education, and training, as provided by the individual;
      • Specific dates and responsibilities of the position; and
      • Place and manner in which the position will be performed.
  • Before carrying out the tangible adverse employment action, the employer must notify the applicant or employee and identify the record on which the employer is relying in assessing the legitimate business reason. Once they are notified, the employer must hold the position open for at least two business days to provide an opportunity to correct or explain the record or provide information about rehabilitation, good conduct, work experience, education, and training.
  • After the notice period has expired, if the employer makes the tangible adverse employment action, the employer must provide a written decision that includes specific documentation about its reasoning and assessment of each of the relevant factors, including the impact of the conviction on the position or business operations, and its consideration of the person’s rehabilitation, good conduct, work experience, education, and training.

In the event of voluntary disclosure, the law requires employers to provide written notice of certain aspects of the law, along with the attorney general’s Washington fair chance act guide for employers and job applicants.

The law has limited exceptions for certain employees, including but not limited to those who work with minors and vulnerable persons.

The Attorney General’s office has the authority to impose administrative sanctions and pursue legal action for second and subsequent violations. The maximum monetary penalties set forth below must be imposed per aggrieved job applicant, employee, or party for each violation:

  • $1,500 for the first violation;
  • $3,000 for the second violation;
  • $15,000 for each subsequent violation.
Employers should review their written application materials, hiring practices, and background check policies to ensure compliance.