fair-chance-hiring

City of Austin Passes Fair Chance Hiring Ordinance

The City of Austin is “banning the box” with its new employment Fair Chance Hiring Ordinance that was approved by an 8-2 vote on March 24, 2016.  The new Ordinance will prohibit companies with 15 or more employees from questioning a job applicant about his/her criminal history until after a conditional job offer has been made.  The purpose of the Ordinance is to give all individuals with criminal histories an equal opportunity in obtaining employment.  

What is the Current Law in Texas?

Currently, Texas law does not prohibit discrimination towards an employee or job applicant because of that individual’s criminal background.  Therefore, an employee in Texas has no legal recourse under state law if he/she is denied employment based on something in his/her criminal record. 

While there is no state or federal law in Texas explicitly prohibiting discrimination based on an applicant or employee’s criminal history, the Equal Employment Opportunity Commission has issued guidance regarding the use of arrest and conviction records in employment decisions based on the discriminatory impact that criminal background check policies often have.  Because minorities are imprisoned at a disproportionate rate, minorities tend to suffer more based on background check policies.  However, this EEOC guidance does not prohibit the use of criminal background checks in employment decisions. 

What Does the Ordinance Do?

  • The City of Austin Fair Chance Hiring Ordinance will only apply to those businesses within the City of Austin that have 15 or more employees. 
  • The Ordinance only applies during the application process. 
  • There is no prohibition against an employer firing an employee based on the discovery of some criminal history. 
  • The law also does not prohibit an employer from revoking a job offer based on information obtained after a conditional offer has been made.     

The Ordinance is not a state or federal law, so it does not give a job applicant the legal right to file a lawsuit if a company is in violation.  An individual who believes that a company is in violation of the Ordinance will have the ability to file a complaint with the City.  Ultimately, a company found to be in violation could face a $500 penalty.   

Employee Rights

While the City of Austin Ordinance will potentially have an impact on the questions that applicants in Austin, Texas see when applying for jobs, it will do little to expand on the legal protections that employees in this State have from discriminatory treatment.  If you believe that you have been discriminated against based on a company’s use of criminal history information, it is important that you speak with an employment lawyer to understand your rights. 


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