Guidance Issued for New York City Fair Chance Act

In our last blog, we talked about New York City’s Fair Chance Act (FCA), a law passed last month that requires a conditional offer to be extended to the applicant before conducting a background check. Earlier this month, to help New York employers understand the new law, the New York City Commission on Human Rights released an enforcement guide as well as a revised FCA Notice evaluation form. The revised version appears to be a result of concerns that arose upon the release of the original notice form. The FCA Notice Form is intended to be provided with the pre-adverse-action notice to justify the denial of employment based on the analysis of NY Correction Law Article 23-A factors.

The guidance breaks down violations of the FCA as such:

1. Declaring, printing, or circulating – or causing the declaration, printing, or circulation of – any solicitation, advertisement, or publication for employment that states any limitation or specification regarding criminal history, even if no adverse action follows. This includes, without limitation, advertisements and employment applications containing phrases such as: “no felonies,” “background check required,” and “must have clean record.”

 2. Making any statement or inquiry, as defined in Section II of this Guidance, before a conditional offer of employment, even if no adverse action follows.

3. Withdrawing a conditional offer of employment based on an applicant’s criminal history before completing the Fair Chance Process as outlined in Section V of this Guidance. Each of the following is a separate, chargeable violation of the New York City Human Right Law (NYCHRL):

a) Failing to disclose to the applicant a written copy of any inquiry an employer conducted into the applicant’s criminal history;

b) Failing to share with the applicant a written copy of the employer’s Article 23-A analysis;

c) Failing to hold the prospective position open for at least three business days, from an applicant’s receipt of both the inquiry and analysis, to allow the applicant to respond.

4. Taking an adverse employment action because of an applicant’s non-conviction.

Penalties for violations will be based on the following factors, among others:

1.       The severity of the violation

2.       The existence of additional previous or contemporaneous violations

3.       The employer’s size, considering both the total number of employees and its revenue

4.       Whether or not the employer knew or should have known about the Fair Chance Act

In summary, the FCA does not allow an employers’ application or print of any kind to mention background checks or the requirement of a clean record to obtain employment. Employers may not inquire about one’s criminal history before a conditional offer of employment. If an employer is taking adverse action they must use disclosure and authorization forms, must provide a written copy of theArticle 23-A analysis AKA the FCA Notice, and must allow three business days for the applicant to dispute the findings of the background check. Lastly, employers cannot deny employment based upon any arrests that did not lead to a conviction.

The entire interpretive guide can be found here.

The new Fair Chance Act Notice can be found here.