As of 2018, 39,000 of New Jersey’s residents were locked up in some kind of detention center, from federal prisons to juvenile facilities. That means nearly 40,000 individuals would have been — or will be — looking for jobs upon release.
If your organization is unlikely to hire a person with a criminal record, consider how many potential employees you’re missing out on. Many of these people were convicted of non-violent crimes such as drug charges and are now less likely to re-offend, especially if given a stable job and income.
In the state of New Jersey, workers with criminal records have several rights when it comes to applying for jobs. This means potential employees with convictions for drunk driving or for violating open container laws should reasonably expect to be treated as fairly as potential employees with perfect driving and criminal records.
This article will explain the legal ramifications of not treating applicants with criminal records fairly, as well as the advantages and disadvantages of hiring employees with criminal backgrounds. After all, they can become some of your best employees.
1. Compliance With Laws and Regulations
At the federal level, all employers are expected to follow the Equal Employment Opportunity Commission’s laws and regulations, such as the Americans with Disabilities Act of 1990.
The EEOC, however, does not touch on criminal history because each state has its own laws about the right to work. Idaho, for example, is a right-to-work state, which means an employee has the right to work or quit and an employer has the right to hire or fire for any reason not included under the EEOC.
New Jersey, however, is different. The New Jersey Institute for Social Justice offers job applicants with criminal records a “cheat sheet” for their rights when it comes to applying for jobs. While the sheet is meant for job applicants, the information contained therein is perfect for employers.
The following four laws, federal and state, govern just how employers can use criminal records in the hiring process:
- The Opportunity to Compete Act (OCA);
- The Fair Credit Reporting Act (FCRA);
- The New Jersey Fair Credit Reporting Act (NJFCRA);
- Title VII of the Civil Rights Act of 1964 (Title VII).
Essentially, under these four laws, employers cannot ask about criminal records until at least the first interview and cannot reject a candidate based on a conviction that’s been expunged. They also must have written consent from a job candidate to conduct a background check.
If an employer rejects a candidate because of their criminal background, the employer must be able to prove the connection between the background and the business necessity if questioned. Otherwise, the employer will violate both the EEOC and the OCA.
2. Work Opportunity Tax Credit (WOTC)
While there are significant social advantages to hiring people with criminal records, one of the greatest business advantages is the Internal Revenue Service’s Work Opportunity Tax Credit (WOTC).
The WOTC was created as part of the Small Business Job Protection Act of 1996. At the time, it allowed small to medium-sized businesses (SMBs) to claim a tax credit for hiring from seven targeted groups of workers. The WOTC now protects 10 targeted groups:
- The formerly incarcerated or those previously convicted of a felony;
- Recipients of state assistance under part A of title IV of the Social Security Act (SSA);
- Veterans;
- Residents in areas designated as empowerment zones or rural renewal counties;
- Individuals referred to an employer following completion of a rehabilitation plan or program;
- Individuals whose families are recipients of supplemental nutrition assistance under the Food and Nutrition Act of 2008;
- Recipients of supplemental security income benefits under Title XVI of the SSA;
- Individuals whose families are recipients of state assistance under part A of Title IV of the SSA;
- Individuals experiencing long-term unemployment.
These individuals must also be in their first year of employment with the reporting SMB, certified as a member of their targeted group, and perform at least 400 hours of service for their reporting employer.
The maximum tax credit for an employer is often $2,400, and an employer can claim more than one wage-based credit for the same employee. For example, if an employee is a veteran who was convicted of a felony, their employer could claim two WOTCs.
3. Use of Untapped Talent Pools
By January 2022, a record 4.5 million Americans had quit their jobs, contributing to the Great Resignation. Some have chosen not to go back to work, leaving thousands of jobs open and no one to fill them.
If you’re an employer in New Jersey, this is where those 40,000 convicts could shine. This is especially if you provide skilled labor, as hiring an experienced person with a criminal record over a new hire with no experience can cost you less in the long run. You may not have to invest as much in training your new hire in the beginning.
4. Lower Attrition and Higher Loyalty
While it can be argued that experienced workers are already set in their ways, convicts — especially those who have successfully completed rehabilitation programs — often come out of incarceration eager to not re-offend. One of the best ways for them to do this is by having a steady job.
When you give a steady job to a person with a criminal record, they have likely been looking for a position for some time. Months, if not years, could have elapsed between conviction and employment.
Even a convict with a certification from the EEOC who is eligible for the WOTC may apply for hundreds of jobs before someone essentially takes a chance on them. That chance often equals greater loyalty as an employee and can even lead to references for other highly qualified convicts with solid pre-incarceration resumes.
5. Altruistic Rehabilitation
Your business has the chance to become a haven for well-qualified persons with criminal records seeking employment. As an employer, you’re uniquely placed to offer these employees new skills, steady wages, and a healthy environment. The more corporate your business, the more benefits an employee is going to have. Some convicts may have never received benefits like employee wellness programs before working for your organization.
The work in and of itself can also provide a form of rehabilitation these people would not get otherwise. This is especially true for those with drug charges who are seeking jobs. Not only is a job a means to a steady income, but it’s also often a means to staying sober for many persons with drug charges. The steady schedule keeps them busy and productive and helps improve their mental health, which in turn, helps to keep them away from drugs.
These rehabilitation efforts can also be helpful if your organization employs teenagers. If you open your books to juvenile offenders, you can help set them back on the right path. Simply put, any opportunity given to a person with a criminal record can be seen as rehabilitation.
6. Healthy Community Development
In 2018, more than 33 million children were living with a parent with a criminal record; or rather, they were likely not living with that parent at all. Because of laws keeping those with criminal records from finding jobs and housing, often in a vicious cycle of rejected applications, these children must live with grandparents or within the foster system.
It was proved decades ago that children who come from broken homes or who have a parent who has been in the criminal justice system are more likely to become offenders themselves, thus continuing the cycle. This contributes to the breakdown not only of families but the community as a whole. In other words, by not supporting community members with criminal records, businesses are perpetuating the vicious cycle of poverty and crime.
7. Marketing Opportunities
One of the greatest advantages of hiring people with criminal records is that, even to those without criminal records, you may be more appealing as an employer. Being able to prove to potential candidates that your hiring practices are socially conscious will help increase your talent pool.
It can also help build more business-to-business relationships, including with other businesses that employ persons with criminal records. The Second Chance Business Coalition is an association of large-scale corporations committed to giving second chances to persons with criminal records.
Your business and those in your community could use the SCBC as an example and market yourselves as a second chance business to convicts and other job seekers.