Second Chance Employers: A Critical Link for Reentry

The Employers

The Sentencing Project estimates over five million people are under supervision by the criminal legal system. In addition, approximately 77 million Americans have a criminal record. To put it in perspective, one in three adults have a criminal record, and just as many Americans have criminal records as Americans with a college diploma. As individuals reintegrate into society from incarceration, many face barriers when searching for employment. 

Research has shown that recidivism rates are significantly reduced when individuals obtain employment opportunities. The unemployment rate for justice-involved individuals is around 27%, a rate much higher than the general unemployment rate of 4.2%. Justice-involved individuals have a harder time obtaining employment due to the stigma associated with having a criminal record. Criminal records can negatively impact the application review process, leading employers to withdraw consideration. Many employers worry about the potential liability they might face with hiring individuals with backgrounds. However, studies have shown that individuals with a criminal background often demonstrate work ethics that are comparable to, or even exceed, those of other employees. Second Chance Business Coalition found that 85% of HR and 81% of business leaders say that individuals with criminal records perform the same as or better than employees without criminal records. Second Chance hires have longer tenure and lower turnover rates, saving companies money. Many employers say Second Chance hires are the most loyal employees.

Second Chance hiring is a win for employers and employees. Employers engaging in second chance hiring programs may qualify for tax incentives such as Work Opportunity Tax Credit (WOTC). WOTC is a federal tax credit program available to employers for hiring “ex-felons” giving them a tax credit of up to 25% of their first year’s wages if the employee works at least 120 hours, and 40% if they work over 400. In addition, Second Chance employers have bonding opportunities through the Federal Bonding Program. The bonds protect employers against employee fraud or dishonesty in the first six months of employment at no cost. Another benefit to Second Chance employers is becoming a partner with organizations in grant programs. 

Employer Engagement Coffee Hour

Pathway Home 2 (PH2), in partnership with CFCC and LINC, hosts a bi-monthly Employer Engagement Coffee Hour designed to promote Second Chance hiring. During these sessions, PH2 highlights the importance and benefits of offering employment opportunities to individuals returning from incarceration. Employers are encouraged to ask questions, share their experiences, and learn more about how Second Chance hiring can positively impact their businesses. Each session also covers available financial incentives and resources, ensuring employers have the tools they need to succeed in this meaningful endeavor. LINC staff will also provide insight into the relationship between the employer, the employee, and the support network PH2 offers. Employers interested in giving individuals a fresh start and providing Second Chance employment opportunities are encouraged to attend. Employers will have the opportunity to connect with others who have embraced Second Chance hiring.

At the April Employer Engagement Coffee Hour, three employers were awarded “Second Chance Employer Champion” from Pathway Home 2. These employers have opened doors for individuals with justice-involved backgrounds, offering them a real chance to succeed through meaningful employment. LINC and CFCC are incredibly grateful for Anne Bonny’s Bar and Grill, NC Ports and B Graham Electric.

The next meeting will be June 13th from 8:30-9:30am. If you are interested in attending, fill out the employer survey. In June, PH2 will be hosting a Federal Bond Clinic and discuss Work Opportunity Tax Credit (WOTC).