NYC Fair Chance Act Rules Take Effect October 30, 2026
NYC's final Fair Chance Act rules take effect October 30, 2026, extending the pre-adverse-action response period to five business days, covering current employees, and narrowing the direct-relationship and unreasonable-risk exceptions.
On September 15, 2026, the New York City Commission on Human Rights adopted final amended rules implementing the Fair Chance Act (Local Law 4 of 2021); they take effect October 30, 2026. Employers must now give candidates and current employees at least five business days to respond to a criminal-history inquiry before revoking a conditional offer or taking adverse action, up from three, and must hold the position open meanwhile. The process now expressly covers current employees whose pending cases or convictions arise during employment, and requires the Fair Chance Employment Notice, the written inquiry, and a written Fair Chance Employment Analysis.
The "direct relationship" and "unreasonable risk" exceptions are narrowed and construed narrowly, with the burden on the employer; "criminal history" now includes non-convictions such as adjournments in contemplation of dismissal unless the order is revoked and restored. Failing to apply the statutory factors is a per se violation, as is using public records or internet searches to learn about criminal history before a conditional offer.
Counsel should audit postings, applications, notice templates, and recruiting scripts, and watch the EEOC's October 6, 2026 proposal to rescind its 2012 criminal-background guidance, which would not affect FCRA duties or NYC rules.