Employment and Second-Chance Hiring

Employment is one of the most significant challenges facing individuals returning from federal incarceration. Research consistently demonstrates that stable employment dramatically reduces recidivism, yet justice-impacted individuals face substantial barriers in the job market. The second-chance hiring movement represents a growing recognition among employers that people with criminal records can be valuable, loyal employees—and that providing employment opportunities benefits businesses, communities, and public safety.

This article provides comprehensive information on employment challenges after federal conviction, the growing second-chance employer movement, legal protections, job search strategies, and resources for returning citizens seeking meaningful work.

Summary

Approximately 70 million Americans have some form of criminal record, and unemployment among formerly incarcerated individuals is dramatically higher than the general population. The barriers to employment include background check failures, employer reluctance, and legal restrictions on certain occupations. The second-chance hiring movement has grown substantially, championed by major employers who recognize that justice-impacted individuals often become dedicated, loyal employees. The Fair Chance Business Pledge, launched by the Obama White House in 2016, has attracted over 300 employer signatories. "Ban the Box" laws in many jurisdictions delay criminal history questions until later in the hiring process. Federal programs like the Work Opportunity Tax Credit and Federal Bonding Program provide employer incentives. EEOC guidance prohibits blanket exclusions of applicants with criminal records in most circumstances. Success in the job search requires preparation, honest disclosure strategies, targeting accessible industries, and utilizing available resources.

The Employment Challenge

Statistics on Unemployment

The employment situation for formerly incarcerated individuals is stark:

• Unemployment rates for people leaving prison exceed 27%—higher than the unemployment rate during the Great Depression
• Five years after release, only about half of formerly incarcerated individuals report any earnings
• When formerly incarcerated individuals do find work, they earn significantly less than their peers
• The "prison pay gap" persists even after controlling for education and experience
• Women with criminal records face even greater employment barriers than men

These statistics reflect both the direct barriers (background checks, legal restrictions) and indirect barriers (skill gaps, interrupted work history, employer bias) that justice-impacted individuals face.

How Criminal Records Affect Hiring Decisions

Criminal records affect employment in multiple ways:

Background checks: Approximately 70-80% of employers conduct background checks on prospective employees. Federal records are accessible through FBI databases and commercial background check services. Even sealed or expunged state records may appear on some commercial background checks.

Application questions: Many job applications ask about criminal history, though "ban the box" laws have changed this in many jurisdictions.

Employer perception: Studies show that employer callbacks drop dramatically when applications disclose criminal records—by as much as 50% in some research.

Professional licensing: Many occupations requiring licenses (healthcare, finance, education, law) have restrictions for individuals with certain convictions.

Industry exclusions: Some industries (banking, childcare, certain government positions) have legal restrictions on employing people with criminal records.

The Google Search Factor

Before formal background checks even begin, many hiring managers conduct informal online searches of candidates' names. A simple Google search can surface DOJ press releases, news articles about arrests or convictions, court records, and mugshot websites—often before the applicant has any opportunity to explain their circumstances or demonstrate their qualifications.

This creates a significant challenge: even when ban the box laws delay criminal history questions until later in the hiring process, an employer's Google search can reveal this information immediately. The First Amendment protects the publication of accurate information about criminal cases, meaning news articles and government press releases about convictions remain online indefinitely—even after completing a sentence, even after decades of rehabilitation.

Justice-impacted individuals should assume that employers will search their names online and consider strategies for addressing what appears in those search results—whether through honest disclosure, building positive online presence, or seeking professional assistance with online reputation management.

"Ban the Box" Explained

"Ban the Box" refers to laws and policies that remove the criminal history checkbox from initial job applications, delaying inquiry about criminal background until later in the hiring process (typically after the first interview or conditional job offer).

Rationale: When criminal history questions appear on initial applications, many qualified applicants are screened out before they have an opportunity to demonstrate their qualifications. Delaying the question allows employers to evaluate candidates as individuals before learning about their criminal history.

Coverage: As of 2024, 37 states and over 150 cities and counties have adopted some form of ban the box policy. Many apply only to public sector jobs, while others include private employers.

Federal government: The Fair Chance to Compete for Jobs Act of 2019 prohibits federal agencies and federal contractors from requesting criminal history information before a conditional offer of employment, with limited exceptions.

Industries with Restrictions

Certain industries have legal barriers for people with criminal records:

Financial services: The Federal Deposit Insurance Act (Section 19) prohibits FDIC-insured institutions from employing individuals convicted of certain crimes involving dishonesty or breach of trust without obtaining a waiver.

Healthcare: Many healthcare positions require background checks, and certain convictions (particularly those involving patient abuse or controlled substances) can be disqualifying.

Education: Schools typically conduct background checks, and sex offense or child abuse convictions are generally disqualifying.

Transportation: TSA and DOT regulations restrict employment in certain transportation security and commercial driving positions.

Government: Various federal and state positions have character requirements and background check processes.

However, many industries have no blanket restrictions, and even restricted industries may have waiver processes or positions that remain accessible.

Understanding Second-Chance Hiring

Definition and Philosophy

Second-chance hiring refers to the practice of intentionally recruiting and employing individuals with criminal records. Beyond simply not excluding applicants with records, second-chance employers actively seek out this talent pool and create supportive environments for their success.

The philosophy behind second-chance hiring recognizes that:

• People are more than their worst mistakes
• Criminal records often reflect circumstances and poor decisions from years or decades past
• The skills, maturity, and perspective gained through adversity can be valuable
• Providing employment opportunities reduces recidivism and benefits communities
• Everyone deserves a genuine opportunity to rebuild their lives through honest work

Business Case for Employers

Research and employer experience demonstrate concrete business benefits:

Lower turnover: Multiple studies show that employees with criminal records have equal or lower turnover rates than other employees. Grateful for the opportunity, these employees often demonstrate strong loyalty.

Strong work ethic: Employers frequently report that second-chance employees are highly motivated and dedicated workers.

Untapped talent pool: With 70 million Americans having some criminal record, excluding this population means missing significant talent.

Tax incentives: The Work Opportunity Tax Credit provides financial benefits to employers who hire from certain targeted groups, including returning citizens.

Reduced recidivism: Employment is one of the strongest predictors of successful reentry. By providing jobs, employers contribute to public safety.

Research on Employee Retention and Performance

Academic research supports the business case:

• A Johns Hopkins study found that employees with criminal records had 13% lower turnover than employees without records
• Research published in the Journal of Law and Economics found that employees with records were no more likely to be terminated for misconduct
• Studies show that performance evaluations for employees with records are comparable to other employees
• Insurance claims and workplace incidents are not elevated among second-chance employees

The Fair Chance Business Pledge

Origin and Mission

In April 2016, the Obama White House launched the Fair Chance Business Pledge, a call to action for employers to commit to practices that provide opportunities for people with criminal records.

President Obama framed the initiative by stating: "We've got to make sure Americans who've paid their debt to society can earn their second chance" and participate "fully in the economy."

Founding Companies

Nineteen companies joined as founding signatories:

• American Airlines
• Busboys and Poets
• The Coca-Cola Company
• Facebook (now Meta)
• Georgia-Pacific
• Google
• Greyston Bakery
• The Hershey Company
• The Johns Hopkins Hospital and Health System
• Koch Industries
• Libra Group
• PepsiCo
• Prudential Financial
• Starbucks
• Uber
• Under Armour/Plank Industries
• Unilever
• Xerox

What the Pledge Commits Employers To

By signing the Fair Chance Business Pledge, employers commit to:

Supporting economic opportunity: Voicing strong support for the approximately 70 million Americans with criminal records

Taking action to reduce barriers: Implementing practices like "banning the box" by delaying criminal history questions until later in the hiring process

Setting an example: Demonstrating leadership for peer companies in their industries

Ongoing commitment: Continuing to evaluate and improve hiring practices

Growth of the Pledge

The pledge expanded significantly after its launch:

• Initial launch: 19 founding companies
• Subsequent rounds brought total signatories to 185, then over 300
• Later signatories included: Walmart, Target, CVS Health, Gap, Intel, Kroger, LinkedIn, Tyson Foods, Ben & Jerry's, and many others
• Collectively, pledge signatories employed over 5 million Americans

Major Second-Chance Employers

The following companies have demonstrated commitment to second-chance hiring through the Fair Chance Business Pledge, public statements, or documented hiring practices:

Company	Industry	Notes
Walmart	Retail	Signed Fair Chance Business Pledge; largest private employer in U.S.
The Coca-Cola Company	Beverage	Founding pledge member
Koch Industries	Diversified	Founding pledge member; active advocate for criminal justice reform
Google	Technology	Founding pledge member
Meta (Facebook)	Technology	Founding pledge member
Starbucks	Food Service	Founding pledge member
American Airlines	Transportation	Founding pledge member
The Johns Hopkins Hospital	Healthcare	Founding pledge member
PepsiCo	Beverage	Founding pledge member
Xerox	Technology	Founding pledge member
Under Armour	Apparel	Founding pledge member
Target	Retail	Signed pledge; removed conviction question from applications
CVS Health	Retail/Healthcare	Signed pledge
Kroger	Retail/Grocery	Signed pledge
Tyson Foods	Food Processing	Signed pledge
Gap Inc.	Retail/Apparel	Signed pledge
Intel	Technology	Signed pledge
LinkedIn	Technology	Signed pledge
Ben & Jerry's	Food	Signed pledge; active advocacy
Dave's Killer Bread	Food Manufacturing	Founded by formerly incarcerated individual; strong second-chance mission
Greyston Bakery	Food Manufacturing	Founding pledge member; "open hiring" policy

Note: Company policies change over time. Research current practices before applying.

Programs and Nonprofits That Help

Federal Programs

Work Opportunity Tax Credit (WOTC)

The WOTC provides tax credits to employers who hire individuals from targeted groups, including:

• Ex-felons: Individuals convicted of a felony and hired within one year of conviction or release from prison
• Tax credit: Up to $2,400 per qualified employee

Employers must obtain certification from the state workforce agency before claiming the credit.

Federal Bonding Program

The Federal Bonding Program provides fidelity bonds to employers who hire "at-risk" job applicants, including people with criminal records. The bonds:

• Are provided at no cost to the employer or employee
• Cover the first six months of employment
• Provide $5,000-$25,000 in coverage against employee dishonesty
• Demonstrate federal government confidence in second-chance employees

Contact your state workforce agency or One-Stop Career Center to access the program.

National Nonprofits

Center for Employment Opportunities (CEO)

Provides immediate employment, skills training, job coaching, and job placement services to people with recent criminal convictions. Operates in multiple states.

National HIRE Network

A project of the Legal Action Center, providing information and advocacy for employment of people with criminal records.

Safer Foundation

Provides employment services, education, and support for individuals with criminal records, primarily in the Midwest.

70 Million Jobs

A for-profit social enterprise (job board) specifically connecting people with criminal records to employers who hire them.

How to Find Local Resources

• Contact your U.S. Probation Officer for local resource referrals
• Visit American Job Centers (One-Stop Career Centers) in your area
• Search for reentry organizations serving your community
• Contact community colleges about reentry support programs
• Reach out to faith-based organizations involved in reentry

Job Search Strategies

Resume Considerations

Employment gaps: Address gaps strategically rather than trying to hide them. Options include:

• Functional resume format emphasizing skills rather than chronological work history
• Listing education, volunteer work, or certifications obtained during incarceration
• Brief, honest explanation when appropriate

Skills emphasis: Focus on transferable skills, including any training or work experience from incarceration (UNICOR, vocational programs, education).

References: Develop references who can speak to your character and work ethic. Consider former supervisors (including from prison work assignments), teachers, religious leaders, and community contacts.

Interview Preparation

Practice your narrative: Prepare a brief, honest statement about your past that emphasizes accountability, growth, and what you've learned. Keep it concise and forward-looking.

Research the employer: Understand the company's values, second-chance policies, and the specific role you're applying for.

Prepare for common questions:

• "Tell me about yourself" (don't lead with your conviction)
• Questions about your background (have a prepared, honest response)
• "Why should we hire you?" (focus on your qualifications and motivation)

Dress professionally and arrive early: First impressions matter.

When and How to Disclose

There is no universal right answer about when to disclose a criminal record. Considerations include:

Legal requirements: If the application asks, you must answer honestly. Lying is grounds for termination if discovered later.

Ban the box jurisdictions: In many places, employers cannot ask until later in the process. Wait until they ask.

After conditional offer: Many experts recommend waiting until you've had a chance to demonstrate your qualifications, typically at or after the interview stage.

Proactive disclosure: Some advocates recommend brief, proactive disclosure that allows you to frame the narrative rather than having the employer discover it through a background check.

Whatever approach you take, be honest, take responsibility, and emphasize what you've done since to grow and change.

Industries That Are More Accessible

Certain industries have higher rates of hiring people with criminal records:

• Construction: High demand, fewer background check requirements
• Manufacturing: Production and warehouse positions often accessible
• Food service: Restaurants frequently hire second-chance employees
• Landscaping and grounds maintenance: Outdoor work with good opportunities
• Transportation and delivery: Some positions (non-CDL) are accessible
• Warehousing and logistics: High turnover creates ongoing opportunities
• Staffing agencies: Can be a pathway to permanent positions
• Small businesses: May be more flexible than large corporations

Legal Protections

EEOC Guidance on Criminal Records

The Equal Employment Opportunity Commission has issued guidance clarifying that:

Blanket exclusions are problematic: Refusing to hire anyone with a criminal record, without individualized assessment, may violate Title VII of the Civil Rights Act if it has a disparate impact on protected groups.

Individualized assessment required: Employers should consider:

• The nature and gravity of the offense
• The time that has passed since the offense or sentence completion
• The nature of the job sought (relevance to the offense)

Arrest records vs. convictions: Employers should not use arrest records (without convictions) as an automatic bar to employment.

This guidance does not create a right to employment but provides grounds to challenge overly broad exclusionary policies.

Fair Chance Hiring Laws by Jurisdiction

As of 2024, fair chance hiring laws exist in:

• Federal government: Fair Chance to Compete for Jobs Act (2019)
• 37 states have some form of fair chance law
• Over 150 cities and counties have local ordinances

Coverage varies:

• Some apply only to public sector
• Others include private employers above certain sizes
• Rules differ regarding when background checks can occur and what can be considered

Research the specific laws in your jurisdiction.

Challenging Unlawful Denials

If you believe an employer violated fair chance laws or EEOC guidance:

1. Document what happened (application, interview, denial)
2. File a complaint with the appropriate agency (EEOC for discrimination claims; state/local agencies for fair chance law violations)
3. Consider consulting an employment attorney
4. Contact organizations like the National Employment Law Project for guidance

Second-Chance Employer Directory

The following table provides a starting point for research. Policies change, and individual hiring decisions vary by location and position. Confirm current practices before applying.

Company	Industry	Positions Commonly Available	Notes
Walmart	Retail	Stocking, customer service, distribution	Large employer; fair chance pledge signer
Target	Retail	Stocking, customer service, distribution	Ban the box; pledge signer
Home Depot	Retail	Customer service, warehouse	Considered fair chance employer
Lowe's	Retail	Customer service, warehouse	Has hired people with records
Amazon	Retail/Logistics	Warehouse, delivery	Large employer; varies by position
Starbucks	Food Service	Barista, shift supervisor	Founding pledge member
McDonald's	Food Service	Crew, management	Franchise-dependent
Tyson Foods	Food Processing	Production, maintenance	Pledge signer
UPS	Transportation/Logistics	Package handler, driver helper	Has hired people with records
FedEx	Transportation/Logistics	Package handler, warehouse	Varies by position
Dave's Killer Bread	Manufacturing	Production	Strong second-chance mission
Additional entries to be added

Terminology

Second-Chance Hiring: The practice of intentionally recruiting and employing individuals with criminal records.

Ban the Box: Laws and policies that remove criminal history questions from initial job applications, delaying inquiry until later in the hiring process.

Fair Chance Business Pledge: Obama White House initiative launched in 2016 calling on employers to commit to fair hiring practices for people with criminal records.

Work Opportunity Tax Credit (WOTC): Federal tax credit for employers who hire individuals from targeted groups, including ex-felons.

Federal Bonding Program: Federal program providing free fidelity bonds to employers who hire "at-risk" applicants.

Individualized Assessment: EEOC-recommended practice of evaluating each applicant's criminal history in context rather than applying blanket exclusions.

Disparate Impact: Discrimination theory under Title VII where neutral policies disproportionately affect protected groups without business justification.

Background Check: Process by which employers verify information about applicants, including criminal history.

See Also

• UNICOR: Federal Prison Industries
• Overview of Reentry Processes
• Access to Banking After Incarceration
• Supervised Release

External Resources

• U.S. Department of Labor - Work Opportunity Tax Credit
• Federal Bonding Program
• EEOC Guidance on Arrest and Conviction Records
• Jails to Jobs

References

• ↑ Obama White House, "FACT SHEET: White House Launches the Fair Chance Business Pledge," April 11, 2016.
• ↑ Obama White House Archives, "Fair Chance Pledge."
• ↑ Equal Employment Opportunity Commission, "Enforcement Guidance on the Consideration of Arrest and Conviction Records in Employment Decisions Under Title VII," 2012.
• ↑ Fair Chance to Compete for Jobs Act of 2019, Pub. L. No. 116-92.
• ↑ U.S. Department of Labor, "Work Opportunity Tax Credit."
• ↑ U.S. Department of Labor, "Federal Bonding Program."
• ↑ Holzer, Harry J., et al., "Perceived Criminality, Criminal Background Checks, and the Racial Hiring Practices of Employers," Journal of Law and Economics, 2006.
• ↑ National Employment Law Project, "Research Supports Fair Chance Policies," 2020.

Frequently Asked Questions

Q: What is second-chance hiring?

Second-chance hiring refers to employer programs and policies that give job opportunities to individuals with criminal records.

Q: Do I have to disclose my conviction?

Disclosure requirements vary by state and job type. Many states have ban-the-box laws that delay conviction inquiries until later in the hiring process.

Q: What jobs can felons not have?

Certain jobs are restricted, including positions requiring security clearances, some financial services roles, healthcare positions, and jobs involving vulnerable populations.

Q: Will employers Google my name?

Many employers conduct informal online searches before formal background checks. DOJ press releases, news articles, and court records can appear in search results indefinitely. Job seekers should prepare for this reality.