Philadelphia Expands “Ban-the-Box” Ordinance: Employers Must Fully Adjust Hiring Procedures by January 2026

Philadelphia has passed an amendment to its Fair Criminal Record Screening Standards Ordinance, which was signed into law by Mayor Parker on October 8. The new regulation will take effect on January 6, 2026, and imposes stricter requirements on employers’ hiring, promotion, and employment management practices. Below is a summary of the major changes and key compliance takeaways for employers.

For policy interpretation or compliance assistance regarding your recruitment and employment practices in Philadelphia, please contact the ILS Team at, contact@consultils.com. We can help you develop a comprehensive hiring and employment compliance strategy to ensure a smooth transition before the new regulation takes effect.

Key Provisions

Scope of Application

The amended ordinance applies to nearly all private employers and municipal agencies operating in Philadelphia. Protected individuals include:

• Full-time and part-time employees

• Temporary and contract workers

• Independent contractors and gig-economy workers

• Rideshare and transportation-network drivers

The regulation covers the entire employment lifecycle—not only hiring, but also re-employment, promotion, pay increases, and termination.

Restrictions on Inquiry and Evaluation

Employers may only inquire about an applicant’s or employee’s criminal record under the following conditions:

• The inquiry can occur only after a conditional offer of employment, promotion, or re-employment has been made.

• Employers may consider only felony convictions within the past seven years and misdemeanors within the past four years.

• Summary offenses (crimes punishable by no more than 90 days in jail) and sealed or expunged records may not be considered.

• Employers cannot deny hiring, promotion, or re-employment solely because of a criminal record. Decisions must take into account the nature of the offense, time elapsed, rehabilitation efforts, and the relevance to job duties.

Notice and Procedural Requirements

If a job posting or hiring process indicates that a background check will be conducted, it must also state that the employer will perform an individualized assessment of any criminal record based on the position’s responsibilities.

Before making an adverse employment decision based on a criminal record, the employer must provide written notice to the applicant or employee, which must include:

• The specific criminal record being considered and a copy of that record

• A summary of the individual’s rights under the ordinance

• A statement that the employer will consider corrections, rehabilitation evidence, or mitigating factors

• Instructions on how to submit supplemental materials

The Philadelphia Commission on Human Relations is expected to issue an official template for employer use. After sending the notice, employers must allow 10 business days for the applicant or employee to respond before making a final decision.

Anti-Retaliation Clause

Employers are prohibited from retaliating against applicants or employees who exercise their rights under the ordinance—for example, by submitting additional documentation or mitigating evidence.

If an employer takes an adverse action (such as a rejection or demotion) within 90 days after the individual exercises such rights, the action will be presumed retaliatory unless the employer can demonstrate that it acted in good faith and for legitimate reasons.

Penalties for Non-Compliance

Individuals may file a complaint with the PCHR or pursue civil action in court.

• The PCHR may impose administrative fines up to $2,000 per violation.

• Courts may award up to $5,000 in damages to the plaintiff, plus attorney’s fees.

Practical Impact

The amendment will significantly reshape hiring and HR management practices in Philadelphia. Employers must now maintain consistent, compliant screening procedures across all employment decisions and keep written documentation of individualized assessments.

The ordinance’s strict anti-retaliation provisions and high financial penalties greatly increase compliance risks. Employers who obtain criminal record information must ensure they have clear, well-documented evidence that their employment decisions are not directly linked to that record.

Recommended Next Steps

Philadelphia employers should begin compliance preparations immediately by:

• Reviewing all hiring and promotion forms to ensure application materials, onboarding procedures, and background-check processes meet the new requirements

• Establishing a written notification process, including adverse-action letters, rights summaries, and supporting documentation

• Training HR and recruitment teams to ensure full understanding and implementation of the ordinance

• Preserving evidence and documentation to mitigate retaliation risks in disciplinary or termination decisions

For policy interpretation or compliance assistance regarding your recruitment and employment practices in Philadelphia, please contact the ILS Team at, contact@consultils.com. We can help you develop a comprehensive hiring and employment compliance strategy to ensure a smooth transition before the new regulation takes effect.

Disclaimer: The materials provided on this website are for general informational purposes only and do not, and are not intended to, constitute legal advice. You should not act or refrain from acting based on any information provided here. Please consult with your own legal counsel regarding your specific situation and legal questions.

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As Managing Partner at ILS, Richard Liu ranks among the leading U.S. attorneys in corporate, employment, and regulatory law. He is known for crafting legal strategies aligned with clients’ business objectives and advising Fortune 500 companies, startups, and executives on corporate transactions, financing, privacy, and employment matters across the technology, healthcare, and financial sectors.

Before founding ILS, Richard practiced at top defense firms, where he developed a reputation for anticipating risks and designing strategies that balance protection with growth. He has secured favorable outcomes in contract and intellectual property disputes, represented clients in state and federal courts, and is recognized for combining large-firm expertise with boutique-firm agility. Richard is also a frequent speaker at industry and legal conferences.

Email: contact@consultils.com | Phone: 626-344-8949

Susan is specialized in employment law and compliance, with additional experience in cross-border investments. With years of experience advising multinational clients, Susan focuses on employment-related matters, including workforce structuring, employee transfers, terminations, compensation and benefits, and workplace policies. She has extensive experience assisting companies in navigating complex labor regulations, managing cross-border employment issues, and resolving workplace disputes.

In addition to her employment law practice, Susan advises on M&A, private equity, venture capital, and cross-border investments. She has assisted international investors with complex deal structures, including VIE frameworks, and prepared due diligence reports and transaction documents.

Email:  contact@consultils.com | Phone: 626-344-8949