SLS 20RS-679 ORIGINAL 2020 Regular Session SENATE BILL NO. 510 BY SENATOR BOUIE EMPLOYMENT. Provides relative to the "Fair Chance Hiring Act". (8/1/20) 1 AN ACT 2 To amend and reenact R.S. 23:291(D)(1) and (E)(2) and R.S. 51:2231(A), 2232, 2236(A), 3 and 2238(1), and to enact R.S. 51:2247.2, relative to the Fair Chance Hiring Act, to 4 provide definitions; to provide relative to the disclosure of criminal background 5 information; to provide prohibitions against discrimination; to provide relative to the 6 hiring of employees or prospective employees with criminal records; and to provide 7 for related matters. 8 Be it enacted by the Legislature of Louisiana: 9 Section 1. R.S. 23:291(D)(1) and (E)(2) and R.S. 51:2231(A), 2232, 2236(A), and 10 2238(1) are hereby amended and reenacted, and R.S. 51:2247.2 is hereby enacted to read as 11 follows: 12 §291. Disclosure of employment related information; liability for hiring certain 13 employees; presumptions; causes of action; definitions 14 * * * 15 D.(1) Any employer who has conducted a background check of an employee 16 or prospective employee after having obtained written consent from the employee 17 or prospective employee or at the request of the owner or operator of any facility Page 1 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 510 SLS 20RS-679 ORIGINAL 1 where the employer performs or may perform all or part of its work shall be immune 2 from civil liability for any and all claims arising out of the disclosure of the 3 background information obtained. This limitation of liability shall extend to all 4 claims of the employee based upon a failure to hire, wrongful termination, and 5 invasion of privacy, as well as all claims of any owner, operator, or any third person 6 for claims of negligent hiring or negligent retention except for claims made under 7 the Fair Chance Hiring Act. 8 * * * 9 E. * * * 10 (2) The provisions of Paragraph (1) of this Subsection shall not apply to any 11 of the following: 12 (a) Acts acts of the employee arising out of the course and scope of his 13 employment that give rise to damages or injury when the act is substantially related 14 to the nature of the crime for which the employee was convicted and the employer, 15 general contractor, premises owner, or other third party knew or should have known 16 of the conviction. 17 (b) Acts of an employee who has been previously convicted of any crime of 18 violence as enumerated in R.S. 14:2(B) or any sex offense as enumerated in R.S. 19 15:541 and the employer, general contractor, premises owner, or other third party 20 knew or should have known of the conviction. 21 * * * 22 §2231. Statement of purpose; limitation on prohibitions against discrimination 23 because of age 24 A. It is the purpose and intent of the legislature by this enactment to provide 25 for execution within Louisiana of the policies embodied in the Federal Civil Rights 26 Act of 1964, 1968, and 1972 and the Age Discrimination in Employment Act of 27 1967, as amended; and to assure that Louisiana has appropriate legislation 28 prohibiting discrimination in public accommodations sufficient to justify the deferral 29 of cases by the federal Equal Employment Opportunity Commission, the secretary Page 2 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 510 SLS 20RS-679 ORIGINAL 1 of the Louisiana Workforce Commission, and the Department of Justice under those 2 statutes; to safeguard all individuals within the state from discrimination because of 3 race, creed, color, religion, sex, age, disability, or national origin in connection with 4 employment and in connection with public accommodations; to protect their interest 5 in personal dignity and freedom from humiliation; to make available to the state their 6 full productive capacities in employment; to provide a fair opportunity for people 7 with criminal records to obtain employment; to secure the state against domestic 8 strife and unrest which would menace its democratic institutions; to preserve the 9 public safety, health, and general welfare; and to further the interest, rights, and 10 privileges within the state. 11 * * * 12 §2232. Definitions 13 As used in this Chapter: 14 (1) "Commission" means the Louisiana Commission on Human Rights. 15 (2) "Commissioner" means a member of the commission. 16 (3) "Criminal history record" means information collected by criminal 17 justice agencies on individuals consisting of identifiable descriptions and 18 notations of arrests, detentions, indictments, bills of information, or any formal 19 criminal charges, and any disposition arising therefrom, including records of 20 juvenile criminal conduct. 21 (4)(a) "Disability" means a physical or mental impairment that substantially 22 limits one or more of the major life activities of the individual, a record of such 23 impairment, or being regarded as having such an impairment. For purposes of all 24 laws which incorporate by reference, apply to, or rely for meaning upon the term 25 disability as defined herein, the terms used in this definition have the following 26 meanings: 27 (i) "Physical impairment" means any physiological disorder or condition, 28 cosmetic disfigurement, or anatomical loss affecting one or more of the following 29 body systems: neurological, musculoskeletal, special sense organs, respiratory, Page 3 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 510 SLS 20RS-679 ORIGINAL 1 including speech organs, cardiovascular, reproductive, digestive, genito-urinary, 2 hemic and lymphatic, skin, and endocrine. 3 (ii) "Mental impairment" means any mental or psychological disorder, such 4 as intellectual disability, organic brain syndrome, emotional or mental illness, and 5 specific learning disabilities. 6 (iii) "Major life activities" includes functions such as caring for oneself, 7 performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, 8 and working. 9 (b) The following shall not be considered disabilities: homosexuality, 10 bisexuality, transvestism, transexualism, pedophilia, exhibitionism, voyeurism, 11 gender identity disorders not resulting from physical impairments, or other sexual 12 behavior disorders, compulsive gambling, kleptomania, pyromania, psychoactive 13 substance use disorders resulting from current illegal use of drugs, or use of alcohol 14 which adversely affects job performance or conduct. 15 (4)(5) "Discriminatory practice in connection with employment" means an 16 employment practice prohibited by Chapter 3-A of Title 23 of the Louisiana Revised 17 Statutes of 1950, or by R.S. 23:664. 18 (5)(6) "Discriminatory practice in connection with public accommodations" 19 means any direct or indirect act or practice of exclusion, distinction, restriction, 20 segregation, limitation, refusal, denial, or any other act or practice of differentiation 21 or preference in the treatment of a person or persons because of race, creed, color, 22 religion, sex, age, disability, or national origin. 23 (6)(7) "Hearing examiner" means one or more persons or commissioners 24 designated by the commission to conduct a hearing. The commission shall have the 25 sole power to determine qualifications of the examiner. 26 (7)(8) "National origin" means the national origin of an ancestor. 27 (8)(9) "Person" means one or more individuals, governments, governmental 28 agencies, public authorities, labor organizations, corporations, legal representatives, 29 partnerships, associations, trustees, trustees in bankruptcy, receivers, mutual Page 4 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 510 SLS 20RS-679 ORIGINAL 1 companies, joint stock companies, trusts, unincorporated organizations, or other 2 organized groups of persons. 3 (9)(10) "Place of public accommodation, resort, or amusement" means any 4 place, store, or other establishment, either licensed or unlicensed, which supplies 5 goods or services to the general public or which solicits or accepts the patronage or 6 trade of the general public, or which is supported directly or indirectly by 7 government funds. However, a bona fide private club is not a place of public 8 accommodation, resort, or amusement if its policies are determined solely by its 9 members and its facilities or services are available only to its members and their 10 bona fide guests. 11 (10)(11) "Unlawful practice" means a discriminatory practice in connection 12 with employment, a discriminatory practice in connection with public 13 accommodations, or any other practice prohibited by this Chapter or by Chapter 3-A 14 of Title 23 of the Louisiana Revised Statutes of 1950. 15 * * * 16 §2236. Parishes and municipalities may prohibit discrimination 17 A. Parishes and municipalities may adopt and enforce ordinances, orders, and 18 resolutions prohibiting that provide for fair chance hiring and prohibit all forms 19 of discrimination, including discrimination on the basis of race, creed, color, 20 religion, national origin, sex, disability, or age, and to prescribe penalties for 21 violations thereof, such penalties being in addition to the remedial orders and 22 enforcement herein authorized. 23 * * * 24 §2238. Powers of local commissions 25 A local commission may: 26 (1) Receive, initiate, investigate, hear, and determine charges of violations 27 of ordinances, orders, or resolutions forbidding discrimination or providing for fair 28 chance hiring adopted by the parish or municipality. 29 * * * Page 5 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 510 SLS 20RS-679 ORIGINAL 1 §2247.2 Fair Chance Hiring Act 2 A. No employer may inquire about an applicant's criminal background 3 unless the applicant has been given a conditional offer of employment. For 4 purposes of this Section, "employer" shall have the same meaning as defined in 5 R.S. 23:302. 6 B. All required criminal background checks for employment shall occur 7 after a conditional offer of employment is presented to the prospective 8 employee. 9 C. In making a final hiring decision, employers may not consider an 10 applicant's arrest records and sealed, dismissed, or expunged convictions. 11 D. In considering other types of criminal history records, the employer 12 shall make an individualized assessment of whether the applicant's criminal 13 record has a direct and adverse relationship with the specific duties of the job 14 that justifies denying the applicant the position. In making this assessment, the 15 employer shall consider all of the following: 16 (1) The nature and gravity of the offense or conduct. 17 (2) The time that has passed since the offense or conduct and completion 18 of the sentence. 19 (3) The nature of the job held or sought. 20 E. If after the conditional offer of employment, the employer makes a 21 preliminary decision that the applicant's criminal record disqualifies the 22 applicant from employment, the employer shall notify the applicant of this 23 preliminary decision in writing explaining their reasoning, the disqualifying 24 conviction(s), the applicant's right to respond within at least five business days, 25 and a copy of the conviction history report or documents upon which the 26 decision was based. 27 F. The applicant shall have at least five business days to respond to the 28 notice provided to them under Subsection E of this Section before the employer 29 may make a final hiring decision. If the employer hires the applicant, the Page 6 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 510 SLS 20RS-679 ORIGINAL 1 minimum five day right to respond period does not apply. 2 G. The employer shall consider information submitted by the applicant 3 pursuant to Subsection F of this Section before making a final hiring decision. 4 Nothing in this Section shall preclude an employer from making a final hiring 5 decision earlier than five business days, should the applicant earlier respond to 6 the notice described in Subsection E of this Section. 7 H. If an employer makes a final decision to deny an application solely or 8 in part because of the applicant's criminal record, the employer shall notify the 9 applicant in writing of the final denial, with or without reasons, and the right 10 to file a complaint with the state or local human rights commission. 11 I. In addition to the remedies contained in this Chapter, an employer 12 that violates this Section shall be subject to a penalty of not more than five 13 thousand dollars for each violation. 14 J. Nothing in this Section shall be construed to override the applicability 15 of the Fair Credit Reporting Act, 15 U.S.C. § 1681. 16 K. This Section shall be known and may be cited as the "Fair Chance 17 Hiring Act." The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Yoursheka George. DIGEST SB 510 Original 2020 Regular Session Bouie Present law provides that an employer, or the owner of the facility where the employer does his business, who conducts a criminal background check with the employee or prospective employee's written consent is immune from civil liability regarding claims arising out of the disclosure of the background information obtained. Proposed law retains present law but exempts those claims made pursuant to the Fair Chance Hiring Act from immunity. Present law provides that an employer, general contractor, premises owner, or other third party shall not be subject to a cause of action for negligent hiring or the improper supervision of an employee or independent contractor who causes damages or injury solely because the employee or independent contractor's criminal conviction. Proposed law retains present law but makes an employer, general contractor, premises owner, or other third party subject to a cause of action due to an employee or independent contractor who has been previously convicted of a crime of violence as enumerated in R.S. 14:2(B) or any sex offense as enumerated in R.S. 15:541 when the employer or general Page 7 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 510 SLS 20RS-679 ORIGINAL contractor knew or should have known of the conviction. Present law provides that it is the purpose of the legislature to safeguard all individuals within the state from discrimination because of race, creed, color, religion, sex, age, disability, or national origin. Proposed law retains present law and expands the purpose and intent of the legislature to include a requirement to provide a fair opportunity for people with criminal records to obtain employment. Present law (R.S. 15:576(2)) defines "criminal history record" as information collected by criminal justice agencies on individuals consisting of identifiable descriptions and notations of arrests, detentions, indictments, bills of information, or any formal criminal charges, and any disposition arising therefrom, including sentencing, correctional supervision, and release. Present law further provides that the records of juvenile criminal conduct are not to be included. Proposed law retains present law but includes records of juvenile criminal conduct. Present law allows parishes and municipalities to adopt and enforce ordinances, orders, and resolutions prohibiting all forms of discrimination based on race, creed, color, religion, national origin, sex, disability, or age. Present law also allows parishes and municipalities to prescribe penalties for violators. Proposed law retains present law but adds that parishes and municipalities prohibit discrimination on the basis of an applicant's criminal history. Present law grants a local commission the power to receive, initiate, investigate, hear, and determine charges of violations of ordinances, orders, or resolution forbidding discrimination adopted by the parish or municipality. Proposed law retains present law but adds that the local commission may also receive, initiate, hear, and determine whether or not fair chance hiring adopted by the parish or municipality has been violated. Proposed law authorizes an employer to inquire about a prospective employee's criminal record only after the prospective employee has been given a conditional offer of employment. Proposed law prohibits employers from considering an applicant's criminal arrest and sealed, dismissed or expunged convictions. Proposed law authorizes employers to make an individualized assessment of whether the applicant's criminal record has a direct and adverse relationship with the specific duties of the job. Proposed law requires the employer to consider all of the following: (1)The nature and gravity of the offense or conduct. (2)The time that has passed since the offense or conduct and completion of the sentence. (3)The nature of the job held or sought. Proposed law requires an employer who makes a preliminary decision to disqualify an applicant due to the applicant's criminal record notify the applicant of the decision in writing explaining the reason, the disqualifying conviction, and a copy of the conviction history report upon which the decision was based. Proposed law also provides that an applicant shall be given five days to respond. Page 8 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 510 SLS 20RS-679 ORIGINAL Proposed law provides that the response period does not apply if the employer hires the applicant. Proposed law requires the employer to consider information submitted by the applicant prior to making a final hiring decision. If the employer denies the application solely or partly because of the criminal record, the employer must notify the applicant in writing of the final denial and the right to file a complaint with the state or local human rights commission. Proposed law provides that in addition to remedies provided in present law, an employer who violates proposed law shall be subject to a penalty of not more than $5,000 per violation. Proposed law shall not be construed to supercede the federal Fair Credit Reporting Act. Proposed law is to be known and may be cited as the "Fair Chance Hiring Act." Effective August 1, 2020. (Amends R.S. 23:291(D)(1) and (E)(2) and R.S. 51:2231(A), 2232, 2236(A), and 2238(1); adds R.S. 51:2247.2) Page 9 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.