Under a new rule issued by the Federal Deposit Insurance Corporation (FDIC) banks can easily hire more people with criminal records.
FDIC-insured banks are prohibited from hiring any person who has been convicted of a crime involving “dishonesty, breach of trust, or money laundering,” unless they obtain consent from the FDIC, but he new rule limits the instances in which a bank would have to get that written approval.
This enables more individuals to work for banks without going through red tape and the final rule will have a major impact on individuals who no longer need to obtain written consent from the FDIC in order to work for a bank.
The new rule:
“Excludes all offenses that have been expunged or sealed rather than only certain types of expungements.”
“Allows a person with two, rather than one, “de minimis” crimes to qualify for the de minimis exception. De minimis in this case means crimes deemed minor or insignificant.”
“Eliminates the five-year waiting period following a first de minimis conviction and establishes a three-year waiting period following a second de minimis conviction.”
The number of Americans with criminal records makes second-chance hiring vitally important and 77 million people have criminal records in the United States, according to the FBI. The challenges people with a criminal records face in getting a job, from suspicious employers to rules that prevent them from obtaining occupational licenses, have negative consequences on those who have been convicted of a crime. This creates barriers to reintegrating into society.
The FDIC rule is a good first step, but more employers and businesses need to proactively expand job opportunities for people with records, including further expanding the de minimis exceptions and ensuring that individuals with criminal and civil fee and fine debt are not unfairly barred from employment.
