Waterloo, Iowa recently published a variety of resources designed to help employers navigate the new Fair Chance Initiative Ordinance. The Ordinance went into effect as of July 1, 2020 after a lawsuit filed by the Iowa Association of Business and Industry was dismissed.
The resources include an approximately 50 minute presentation that highlights the reasons behind the law, an overview of requirements impacting employers and a brief outline of other legal considerations such as the Fair Credit Reporting Act. There are additional links to sample background check disclosure and authorization forms, and various resources published by SHRM.
The Ordinance impacts employers differently depending on employee count. For employers with 4-14 employees, no question regarding criminal history may occur on an employment application.
Employers with 15 or more employees face a much broader range of requirements under the law.
As discussed during the City’s training, candidates can voluntarily disclose a criminal background during the hiring process at which point employers should disregard and continue with the normal process. However, whether that is required or not under the Ordinance is unclear as the law notes “the employer may discuss the criminal record disclosed by the applicant.”
Note, some employers are exempt from the Ordinance’s requirements.
The resources include an approximately 50 minute presentation that highlights the reasons behind the law, an overview of requirements impacting employers and a brief outline of other legal considerations such as the Fair Credit Reporting Act. There are additional links to sample background check disclosure and authorization forms, and various resources published by SHRM.
The Ordinance impacts employers differently depending on employee count. For employers with 4-14 employees, no question regarding criminal history may occur on an employment application.
Employers with 15 or more employees face a much broader range of requirements under the law.
- No inquiry into or required disclosure of criminal history on an employment application or during the interview process.
- No adverse hiring decision based solely on an individual’s arrest record or pending criminal charges that have not yet resulted in a conviction.
- No adverse hiring decision based on criminal records that were expunged, erased, received an executive pardon or which were otherwise legally nullified.
- No background check until after a conditional job offer is extended.
- Adverse hiring decision cannot be made without a legitimate business reason.[1]
As discussed during the City’s training, candidates can voluntarily disclose a criminal background during the hiring process at which point employers should disregard and continue with the normal process. However, whether that is required or not under the Ordinance is unclear as the law notes “the employer may discuss the criminal record disclosed by the applicant.”
Note, some employers are exempt from the Ordinance’s requirements.
[1] A “legitimate business reason” is defined as: (i) situations where the nature of the criminal conduct has a direct and substantial bearing on the fitness or ability to perform the duties and responsibilities of the position (requires analysis of several factors), (ii) situations where the granting of employment would involve unreasonable risk of substantial harm to property or to the safety of individuals or the public, or to business reputation or assets, (iii) positions working with children, developmentally disabled persons and vulnerable adults where the conviction record is against the aforementioned population and (iv) situations where the employer must comply with a federal or state law or regulation pertaining to background checks and the criminal conduct is relevant to the individual’s fitness for the position.