San Francisco Bans Use of Out-of-State Convictions for Abortion and Gender-Affirming Care in Hiring Decisions

San Francisco has officially banned employers from using out-of-state convictions related to abortion, gender-affirming care, and drag performances in hiring decisions. The amendment to the city's Fair Chance Ordinance (FCO), which took effect on August 10, 2026, doubles penalties for violations and forces companies to overhaul their background check matrices to remain compliant.[1][2]

Ordinance No. 128-26 applies to any company with five or more employees worldwide, provided the applicant or employee works at least eight hours a week in San Francisco. Crucially, this includes remote workers physically located in the city. The law categorically excludes four types of out-of-state convictions from employment consideration: abortion-related healthcare, spontaneous abortion or miscarriage, gender-affirming care, and drag performances.[1][5]

The amendment significantly raises the financial risk for non-compliant businesses. Maximum administrative penalties have doubled across the board, jumping from $500 to $1,000 per affected person for a first violation, and scaling up to $4,000 for subsequent offenses. Furthermore, liquidated damages available in civil litigation have also doubled to $1,000 per person for every day the violation continues.[3][4]

According to the city's legislative findings, the ordinance was drafted as a direct response to the 2022 Supreme Court decision in Dobbs v. Jackson Women's Health Organization and the subsequent wave of state-level laws criminalizing personal healthcare and expression. City officials designed the amendment to shield residents from being locked out of the labor market due to out-of-state convictions for conduct that remains fully legal under California law.[2][6]

Background check providers and human resources departments are now required to update their screening algorithms. Because the FCO prohibits employers from even inquiring about these specific out-of-state convictions, companies must work closely with consumer reporting agencies to ensure these charges are automatically filtered out of background reports before they ever reach a hiring manager's desk.[5][6]

Beyond the new protected categories, the amendment also tightens the procedural timeline for adverse hiring actions. If a candidate's background check returns a legally permitted conviction, and the applicant provides evidence of inaccuracy or rehabilitation, employers must now confirm receipt of that evidence within 14 days. A final adverse action notice must then be issued within 30 days, adding strict procedural clocks to the hiring workflow.[3][5]

Legal advisors note that the inclusion of remote workers creates a significant compliance trap for national employers. A company headquartered in a state with restrictive healthcare laws that hires a remote worker based in San Francisco is fully subject to the ordinance. This means their national background check policies must be localized to comply with San Francisco's specific carve-outs, preventing them from applying a uniform national screening standard.[2][4]

With the August 10 effective date now passed, employment lawyers are advising companies to immediately audit their job postings, revise their background screening packages, and retrain hiring managers. The amendment signals a growing trend of municipalities using local employment law to counter out-of-state social legislation, setting up an increasingly complex and fragmented regulatory landscape for national employers navigating the 2026 labor market.[3][6]