Should you hire someone
who has been convicted of a crime?

You probably already have. 1 in 3 Americans has a criminal record.

Myths & Facts

MYTH: Being a Second Chance Employer means that you do not do background checks.

FACT: Second Chance Employers absolutely do background checks.

Second Chance employment is not about ignoring criminal backgrounds. It’s about getting to know the person and their skill sets first and then comparing that to the details of their criminal background. If the person is a fit for employment and has a criminal background, we are asking employers to consider factors like much time has passed since the crime was committed and their reason for committing crime.

MYTH: Recidivism depends on the type of crime committed.

FACT: Type of crime is a poor predictor of risk of future offending.

“… a well-established body of research that shows few people specialize in a particular crime type. Knowing the type of crime committed in the past tells us little about type of the crime that a person may commit in the future — or whether they will commit any crime at all. And counter to prevailing misimpressions, people who have served a longer sentence (say, for a crime of violence) can have a lower risk of reoffending than a younger person with multiple recent convictions. So when companies consider a person’s type of crime to assess their fitness for particular job duties, they likely unnecessarily exclude candidates who statistically are no more likely to become a problematic employee than any other person with a conviction.”
- Harvard Business Review

MYTH: People with criminal histories are likely to commit another crime.

FACT: Most people who are convicted of a crime don’t have a second conviction.

“A 2022 RAND Corp. analysis …strongly counters the mistaken assumption “once a criminal, always a criminal.” The analysis, based on a large data set of people with convictions in North Carolina, showed that 70% did not acquire a second conviction over a 25-year follow-up period.

The data also showed that after a relatively short time in the community, the risk of a person with a conviction committing another crime can mirror the risk levels of some people in the population without a conviction, particularly younger people. This speaks to another oft-overlooked fact about hiring: Those without a record also have a risk of future conviction.”
- Harvard Business Review

MYTH: There’s no way to tell whether someone will reoffend.

FACT: There are research-backed factors employers can look for.

“The RAND study of North Carolina data demonstrated that the single most reliable factor in predicting future likelihood to reoffend is the amount of time that has passed since a person’s last conviction. This finding bears out the intuitive conclusion that success augers future success: The longer someone operates in free society without a conviction, the less likely they are to return to criminal acts.

Two other factors that are most predictive of risk of reoffending are age (for the reasons noted above) and the number of prior convictions in a job applicant’s record.

Alongside those more reliable factors (time since last conviction, age, and number of convictions) employers can look to first-hand information about a candidate to inform their assessment of risk of reoffending. A 2020 RAND report co-authored by Shawn and published in the Annual Review of Criminology demonstrated that participation in training or rehabilitation programs is more predictive of risk of reoffending than many other factors. This may partially result from self-selection; those motivated to change are more likely to enroll in those programs.” - Harvard Business Review

FAQs

COMMON QUESTIONS ABOUT HIRING
MEN & WOMEN WITH CRIMINAL BACKGROUNDS

A: Yes! Second-chance hiring offers several advantages:
- Tax Credits: The Federal Work Opportunity Tax Credit (WOTC) and the South Carolina state tax credit provide financial incentives for hiring individuals with criminal backgrounds.
  - WOTC = 40% of up to $6,000 of wages paid to or incurred on behalf of an individual who:
    is in 1st year of employment
    is certified as being a member of a targeted group
    performs at least 400 hours of service for that employer; and
    begins work on or before December 31, 2025.
  - The Work Opportunity Tax Credit is a federal tax credit available to employers for hiring individuals from certain “targeted groups” who have consistently faced significant barriers to employment
  - May be claimed by any employer who hires eligible “ex-felons” within 1 year of being convicted of a felony or being released from prison for the felony.
Disclaimer: We are not a tax professionals, nor do we want to be one. You should rely on the advice of your tax preparer or accountant when making business decisions.
- US Department of Labor Federal Bonding Program: provides free fidelity bonding coverage to protect against employee fraud or dishonesty during the first six months of employment.
  - Applies to any job, any employer, in any state, at no cost to the employer.
  - Eligible employees:
    •FT employees
    •PT employees
    •Temporary employees receiving paid wages w/ federal taxes automatically deducted from pay
- Coverage begins when applicant receives job offer.
- Bond amount = $5,000 - $25,000
A: As an employer, there are 6 steps you can take to ensure a fair and effective background screening process.
1. Know how to spot mistakes or inaccuracies on a background check.
  Reading a background check is not intuitive. There are often mistakes, inaccurate information, or non-convictions listed.
2. Make decisions based on job-related factors and business necessity.
  There are only two reasons it may be appropriate to exclude an applicant based on their criminal record: if the record would negatively impact their ability to perform the job, or if it presents an unacceptable risk to the company.
3. Be Consistent.
  Ensure the scope and application of background checks are consistent for all candidates and not applied only to those who raise suspicion because of how they look or where they live. 1 in 3 Americans has a criminal background.
4. Avoid Blanket Policies
  Disqualifying applicants solely based on a criminal record can lead to disparate impact.
5. Build Individual assessments or skills assessment into your process.
  Evaluate each case individually, considering the nature and age of the offense, and its relevance to the job. Implement skills assessments for all applicants, to ensure you are working with the best applicant pool possible.
6. Follow the 2-step Adverse Action Process.
  Notify applicants of any adverse action based on the background check and allow them to provide mitigating information before making a final decision.
A: While insurers may consider past behavior as an indicator of future risk, it’s important to balance business concerns with giving individuals a second chance. To minimize risk, you may want to ask your insurance broker if they can provide a waiver confirming that an employee’s criminal history won’t affect your liability coverage. Additionally, consider applying for the federal bonding program, which protects against employee fraud or dishonesty during the first six months of employment.
A: In South Carolina, employers can be held liable for negligent hiring or supervision. However, research shows that employees with criminal backgrounds are only marginally more likely to be involved in a lawsuit compared to those without a criminal history. As always, it’s important to evaluate each candidate carefully and make decisions based on the job's specific requirements.
A: If your team is struggling to reach a consensus on equitable hiring practices, consider bringing your concerns to leadership. Work together to find common ground and ensure that your hiring practices reflect your commitment to fairness and inclusion.