San Francisco Employment Adverse Action: CRA, Employer, and Applicant Duties
- Stacey Kelley
- 11 minutes ago
- 5 min read
When a background check may affect an employment decision in San Francisco, the employer must follow more than federal FCRA requirements. Covered employers must also follow the San Francisco Fair Chance Ordinance (FCO), which has its own timing, notice, and record-review rules.
This article applies to employment decisions only. Covered affordable-housing providers follow a separate process. For the broader 2026 law update, including affordable-housing obligations, read our San Francisco Fair Chance Ordinance Update.
Who is covered?
San Francisco’s employment FCO generally applies to employers with five or more employees that are located or doing business in San Francisco when the position involves at least eight hours of work per week in the City.
It can cover employees, temporary workers, contractors, staffing-agency placements, contingent workers, and certain trainees. Covered employers may not ask about or consider criminal history until after a conditional offer of employment.
Who does what?
Party | Role |
Employer | Decides whether the FCO applies, reviews information lawfully, completes the required assessment, sends required notices, considers a response, and makes the final employment decision. |
CRA / GBS | Provides the consumer report, supports accuracy and reinvestigation of disputed report information, and may help with notice delivery and tracking. |
Applicant or employee | May review the report, dispute inaccurate information, and provide rehabilitation or mitigating information before a final decision. |
A CRA does not decide that someone should be rejected. An employer should never tell an applicant that “GBS denied you” or that GBS made the hiring decision.
Before prospective adverse action: review what may not be considered
Before considering an adverse employment action, the employer should remove or escalate information that San Francisco prohibits from consideration.
Examples include:
Arrests not resulting in conviction, except unresolved arrests
Diversion and deferred-judgment programs
Juvenile records
Expunged, dismissed, invalidated, or inoperative convictions
Infractions
Certain convictions more than seven years old
Decriminalized conduct
Out-of-state arrests or convictions tied to conduct lawful in California involving abortion-related healthcare, gender-affirming care, drag performances, or spontaneous abortion
The employer—not the CRA—must decide whether the information can lawfully be considered for the role.
San Francisco employment adverse-action timeline
1. Make a conditional offer first
For covered positions, do not ask about or consider criminal history until after a conditional offer of employment.
2. Identify the specific record being considered
If the employer is considering not hiring, not promoting, terminating, or taking another covered employment action based on conviction history or an unresolved arrest, it should identify the specific item or items that may support the decision.
3. Send a prospective adverse-action notice
Before taking the final action, the employer must provide a prospective adverse-action notice and the items forming the basis for the potential action.
When a consumer report was used, the FCRA also requires the employer to provide:
A copy of the consumer report relied upon; and
A copy of the current Summary of Your Rights Under the Fair Credit Reporting Act.
The applicant or employee has 7 days from the date of the notice to provide evidence that the information is inaccurate, that they have been rehabilitated, or that other mitigating factors should be considered.
4. Confirm receipt of a response
If the applicant or employee responds with information about inaccuracy, rehabilitation, or mitigating circumstances, the employer must confirm receipt within 14 days.
5. Send the final adverse-action notice if a final decision is made
If the employer proceeds with a final adverse employment action based on criminal history, San Francisco requires the final notice within 30 days of receiving the applicant’s or employee’s information. If the person does not respond, the City’s guidance requires final notice within 30 days of the employer’s prospective notice.
The employer must also satisfy federal FCRA final-adverse-action requirements. The FTC explains that this notice must identify the CRA, state that the CRA did not make the decision, and explain the person’s right to dispute information and request an additional free copy of the report within 60 days. Read FTC employer guidance.
Example: prospective adverse-employment-action notice
Template only. Employers should have qualified counsel review their notices, policies, and facts before use.
Subject: Prospective Adverse Employment Action Notice
Date: [Date]Applicant/Employee: [Full Name]Position: [Job Title]Employer: [Legal Employer Name]
Dear [Name]:
[Employer Name] is considering the following employment action: [not hiring / not promoting / termination / other action].
No final decision has been made.
We are considering this action in whole or in part based on the following conviction history or unresolved arrest:
[Identify the specific item or items being considered.]
[Identify the source and date of the information.]
Enclosed are a copy of the consumer report used in this review and a copy of the Summary of Your Rights Under the Fair Credit Reporting Act.
Because this position is covered by the San Francisco Fair Chance Ordinance, you may provide information within seven days of the date of this notice regarding:
Any inaccuracy or incompleteness in the information;
Evidence of rehabilitation; or
Other mitigating circumstances you would like [Employer Name] to consider.
Please send your response and any supporting information by [Date] to:
[Employer contact name][Email address][Mailing address][Phone number]
We will consider timely information before making a final decision. If you respond, we will confirm receipt as required by applicable law.
Sincerely,
[Employer representative name][Title][Employer legal name]
Example: final adverse-employment-action notice
Subject: Final Adverse Employment Action Notice
Date: [Date]Applicant/Employee: [Full Name]Position: [Job Title]Employer: [Legal Employer Name]
Dear [Name]:
After reviewing the available information, including any information you provided in response to our prospective adverse-action notice, [Employer Name] has made the final decision to [not hire / not promote / terminate / other action].
This decision was based in whole or in part on information in a consumer report, including:
[Identify the specific item or items considered.]
The consumer reporting agency that provided the report is:
Global Background Screening[GBS mailing address][GBS telephone number][GBS dispute contact or website]
Global Background Screening did not make this employment decision and cannot provide the specific reasons for it.
You have the right to dispute the accuracy or completeness of any information in your report with Global Background Screening. You may also request an additional free copy of your report from Global Background Screening if you request it within 60 days.
Sincerely,
[Employer representative name][Title][Employer legal name]
How GBS supports the process
Global Background Screening can provide authorized employment background checks and help clients manage report delivery, disputes, and adverse-action communications.
GBS does not decide whether an applicant should be hired. The employer remains responsible for determining whether San Francisco’s FCO applies, using only legally permissible information, completing any required assessment, following the required notices and timing, and making the final decision.
For broader guidance on managing FCRA notices, see Is Your Company Following Adverse Action Procedures?
Compliance notice: This article provides general information, not legal advice. Employers should consult qualified counsel regarding San Francisco, California, federal, and industry-specific requirements before taking action based on criminal-history information.
