Top 5 Frequently Asked Questions for Small Companies Employing Individuals Convicted of a Crime

Several businesses entirely exclude candidates with criminal convictions. Learn about the advantages of employing the recently jailed and get answers to your legal issues.

What you’ll discover:

Are there government rewards for recruiting recently imprisoned workers?
Is the Federal Bonding Program applicable to my company?
Is it unlawful to deny an application because the applicant is on parole or probation?
How can I reduce the dangers associated with employing felons?
Which employment rules are most important when recruiting ex-convicts?

Recruitment may be difficult for small firms. Finding the proper personnel might be much tougher, particularly during times of increasing demand. Many firms, however, entirely exclude candidates with a criminal past. Simply said, employing someone who have been convicted of a crime and served their time has advantages. The following are the most often asked questions by small company owners about recruiting employees with a conviction on their record.

Are there government incentives for employing recently imprisoned individuals?

Employers that hire people with felony convictions are eligible for federal and state tax benefits. The federal Work Opportunity Tax Credit is worth up to $2,400 for each new eligible hire.

States may also issue tax credit incentives. In Iowa, for example, company owners may deduct up to $20,000 in taxes for each felony-conviction employee.

Companies that hire someone with a criminal record may also be eligible for the Federal Bonding Program, which provides businesses with free fidelity bond coverage in the event of theft or dishonesty.

Is the Federal Bonding Program applicable to my company?

In a nutshell, sure.

The Federal Bonding Program (FBP), which was established in 1966, incentivizes firms to hire persons who might otherwise have difficulty obtaining work, including those with a criminal record. During the first six months of a worker’s employment, the FBP requires employers to post a $5,000 bond. If the employer loses money as a result of fraud or dishonesty in recruiting the employee, the bond will apply.

The bond gives firms with additional insurance at no further expense. It is accessible for all sorts of occupations and workers in any state or business. The scheme also applies to employees employed via temp or staffing firms.

Is it unlawful to deny an application because the applicant is on parole or probation?

Companies may have rules prohibiting the employment of individuals with a certain criminal conviction for specific jobs or work activities. Ex-felons, as well as those on parole or probation, are not protected by federal law. Yet, a blanket policy against employing anyone with criminal records may unjustly reject applications. In order to implement a policy that excludes individuals with criminal backgrounds, there must be a valid business reason tied to the position.

Some states are stricter than others. Holding an applicant’s criminal background against them may be a violation of state and municipal regulations. Employers in California, Hawaii, New Jersey, Minnesota, and Vermont, for example, are prohibited from asking about criminal past on employment applications at all. Similar laws exist in 35 states and nearly 150 localities. If you are unclear about the legislation in your state, consult with a lawyer about how to maintain your employment procedures lawful.

How can I reduce the dangers associated with employing felons?

When you employ someone new, there are obvious dangers, but you may have extra worries if the candidate has a crime on their record. If you’re legally permitted to in your state, you may sometimes inquire what the conviction was founded on. Driving while inebriated, for example, is a crime in several places. Some companies may be less worried about that sort of conviction than they are about felony theft, depending on the position. The Federal Bonding Program, as well as analogous state or municipal initiatives, may help to reduce financial risk.

Next, you must determine if the candidate is the greatest match for the position. During the interview, take the time to get to know the individual. Selecting the proper person for the job may be more crucial than checking the applicant’s criminal record. Ex-convicts are more loyal to their employers than other candidates, according to a little-known statistic.

Which employment rules are most important when recruiting ex-convicts?

In general, it is critical to get your recruitment and hiring practices correct. You should check your state’s labor laws or consult with a local attorney to discover what questions about criminal background you may and cannot ask on job applications and in interviews. Before doing any criminal background checks on candidates, you may need to get written permission.