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2023-071 Fair Chance Hiring Engagement Report Dec. 22, 2023 Report No. 2023-071 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Proposed Fair Chance Hiring Ordinance Engagement Report EXECUTIVE SUMMARY: At the direction of the Denton City Council, staff engaged in a feedback and engagement period regarding the proposed Fair Chance Hiring ordinance. The results are provided below and in the attached documents. BACKGROUND: At the June 27, 2023 City Council meeting, the Council postponed consideration of the ordinance until the first meeting in January 2024 and requested staff seek community and business feedback on the ordinance prior to that time. Staff began the engagement period in early October 2023 with feedback and input being accepted through Dec. 5, 2023. During this period, staff conducted three (3) in-person listening sessions, two (2)virtual listening sessions, and hosted a Discuss Denton project page. On the Discuss Denton page ()Dww.discussdenton.com/fairchancehirin�z), members of the public were able to review information and FAQs on the proposed Fair Chance Hiring ordinance, leave comments, ask questions to be answered by staff,and voice their support or opposition for the proposed ordinance. Additionally, a public hearing was held at the Dec. 5,2023, City Council meeting where members of the public gave live feedback directly to the City Council. DISCUSSION: A summary of the feedback and input received on the proposed ordinance is provided below and in the attached documents. Feedback opportunities were communicated through press releases, social media, through organizations like the United Way of Denton County and the Denton Chamber of Commerce.Additionally, several news media articles in the Denton Record-Chronicle provided additional visibility. A flier outlining the public engagement opportunities is attached. Listening Sessions A total of 19 participants attended the three in-person listening sessions. While all sessions were conducted by City staff, two sessions were hosted by the Denton Chamber of Commerce and promoted to their members. These sessions were attended by 17 participants while the lone City- hosted session was attended by two participants. The two virtual sessions were attended by two participants for the first, and zero participants for the second. While all participants were encouraged to give direct feedback through the Discuss Denton platform, staff recorded general points of feedback expressed in the listening sessions. Overall, Dec. 22, 2023 Report No. 2023-071 listening session participants were supportive of initiatives that promoted the hiring of persons with criminal records, but did not support the proposed ordinance for the following reasons: Participants voiced concern that the proposed ordinance would make local businesses less competitive compared to other cities. Costs/Competitiveness Additionally, there was concern that businesses would incur greater costs in the hiring process if, in cases where a final candidate was not hired due to a criminal record, the hiring process had to be restarted. Participants felt that there was not a clearly established need for the program and that no data supported that there was a Ill-Defined Problem systemic issue that prevented persons with criminal records from being hired. Several felt this was a"solution in search of a problem". Other concerns raised included the possibility that businesses Other Impacts will be viewed as guilty before proven innocent and that the complaint process could be abused. The participants favored voluntary programs or incentives to promote fair chance hiring or second chance hiring. Staff will also report that communication of the requirements of the ordinance will be a significant challenge. Many provisions of the ordinance are conditioned on the outcome of a complaint and much of the time in the listening sessions was providing clarity on what the ordinance required of businesses and what it did not require. Discuss Denton Project t Page The Fair Chance Hiring Discuss Denton project page (www.discussdenton.com/fairchancehiring) provided three key avenues that members of the public could provide their feedback on the proposed ordinance: • Asking questions, and receiving responses; • Taking a survey to note support or opposition; and • Providing written commentary The attached engagement report provides a summary and details of the feedback received through Discuss Denton. During the engagement period, the site recorded 512 visits. Of the total visitors, 22 provided comments (provided in the report) on the proposed ordinance, with a further 74 reviewing those comments. Five (5) members of the public submitted questions, each of which received a response from staff members. Dec. 22, 2023 Report No. 2023-071 A total of 29 members of the public took the poll to indicate their support or opposition to the proposed ordinance. Of that number 15 (51.7%) opposed the ordinance, 10 (34.5%) supported it, and 4 (13.7%) were unsure. Other Feedback The Denton Chamber of Commerce provided additional feedback in the form of the attached memo,summarizing its opposition to the proposed ordinance.Additionally,the Chamber collected feedback from Denton businesses that wished to provide input anonymously. That feedback is captured in a second attached memo. Staff additionally reached out to Workforce Solutions of North Texas, the UNT Career Center, and local service providers (via United Way of Denton County) to encourage them to provide feedback on the Discuss Denton site. Research and/or Studies During the discussion on Dec. 5, it was recommended that staff gather any available data or research on this topic. Staff gathered available research regarding Fair Chance Hiring or"ban the box" initiatives and their effectiveness at increasing employment outcomes for persons with criminal records. While not exhaustive, the data staff found indicate that there is not a research consensus on the effectiveness of fair chance hiring initiatives. The National Employment Law Project has compiled research that points to economic and social benefits that accrue when persons with criminal records gain employment. The resources provide case studies for the municipal organizations of Durham,NC, Washington, DC, Minneapolis, MN, and Atlanta, GA where positive employment outcomes for persons with criminal histories were observed. Importantly, these studies were in jurisdictions where these protections only applied to the government organization and did not extend to the private sector. Other studies indicate a lack of effectiveness or, in some cases, unintended adverse outcomes: • Does Banning the Box Help Ex-Offenders Get Jobs?Evaluatingthe f f ects of a Prominent Example(Journal of Labor Economics) • Does "Ban the Box"Help or Hurt Low-Skilled Workers? Statistical Discrimination and Employment Outcomes When Criminal Histories are Hidden (National Bureau of Economic Research) o This research is further described in study author Dr. Jennifer Doleac's testimony before the U.S. House Committee on Oversight and Government Reform. • Ban the Box, Criminal Records, and Racial Discrimination:A Field Experiment(Quarterly Journal of Economics) It is important to note that there is very little research available on this issue and even less that provides insight into the impacts of discrimination(the mitigation of which is a key component of the proposed Denton ordinance). Staff further sought information from the City of DeSoto and City of Austin regarding any outcomes from their passage of their respective fair chance hiring ordinances. While the City of Dec. 22, 2023 Report No. 2023-071 Desoto did not provide a response, the City of Austin met with staff to provide details of their implementation. In that conversation, Austin staff acknowledged that it did not have any formal data that would show the impact of their Fair Chance Hiring on the overall employment outcomes of persons with criminal records. CONCLUSION: This information is provided to inform the Council ahead of the consideration of the proposed Fair Chance Hiring ordinance on Jan. 9,2024. ATTACHMENTS: 1. Discuss Denton Detailed Engagement Report 2. Engagement Opportunities Flier 3. Denton Chamber of Commerce Board Memo 4. Denton Chamber of Commerce Business Feedback Memo 5. Proposed Fair Chance Hiring Ordinance STAFF CONTACT: Ryan Adams Chief of Staff Ryan.Adams@cityofdenton.com (940) 349-8565 REOUESTOR: Staff Initiated STAFF TIME TO COMPLETE REPORT: 6 hours PARTICIPATING DEPARTMENTS: City Manager's Office City Attorney's Office Project Report 20 April 2021 - 11 December 2023 Discuss Denton Fair Chance Hiring --1W a 6"?,*- BANG TNE TABEt., sold ft, ,,, Visitors Summary Highlights MAX VISITORS PER TOTAL V I S 1111 DAY 150 512 47 NEW 100 REGISTRATI ONS 28 50 ENGAGED INFORMED AWARE M VISITORS VISITORS VISITORS 1 Sep'23 1 Nov'23 39 1140 398 _ Pageviews Visitors Aware Participants 398 Engaged Participants 39 Aware Actions Performed Participants Engaged Actions Performed Registered Unverified Anonymous Visited a Project or Tool Page 398 Informed Participants 140 Contributed on Forums 22 0 0 Informed Actions Performed Participants Participated in Surveys 0 0 0 Contributed to Newsfeeds 0 0 0 Viewed a video 0 Viewed a photo 0 Participated in Quick Polls 29 0 0 Posted on Guestbooks 0 0 0 Downloaded a document 18 Visited the Key Dates page 16 Contributed to Stories 0 0 0 Visited an FAQ list Page 27 Asked Questions 4 0 0 Visited Instagram Page 0 Placed Pins on Places 0 0 0 Visited Multiple Project Pages 71 Contributed to Ideas 0 0 0 Contributed to a tool(engaged) 39 Discuss Denton : Summary Report for20 April 2021 to 11 December 2023 ENGAGEMENT TOOLS SUMMARY 1 0 1 3 0 FORUM TOPICS SURVEYS NEWS FEEDS QUICK POLLS GUEST BOOKS 0 1 0 STORIES Q&A S PLACES Tool Type Contributors Engagement Tool Name Tool Status Visitors Registered Unverified Anonymous Forum Topic Fair Chance Hiring Ordinance Feedback Published 74 22 0 0 Newsfeed New FAQ-Does the ordinance require a Published 1 0 0 0 business to hire s... Qanda Submit a Question Published 28 4 0 0 Quick Poll Do you support the proposed Fair Chance Published 30 29 0 0 Hiring Ordinance? Quick Poll Do you live or work in Denton? Published 4 4 0 0 Quick Poll What best describes you? Published 4 4 0 0 Page 2 of 15 Discuss Denton : Summary Report for20 April 2021 to 11 December 2023 INFORMATION WIDGET SUMMARY 4 0 0 1 0 DOCUMENTS PHOTOS VIDEOS FAGS KEY DATES Widget Type Engagement Tool Name Visitors Views/Downloads Faqs fags 27 32 Key Dates Key Date 16 26 Document Proposed Fair Chance Hiring Ordinance.pdf 14 18 Document Public Meeting Presentation 12 14 Document Fair Chance Hiring Ordinance Public Input Flyer.pdf 8 8 Document City of Denton Comprehensive Non-Discrimination Ordinance 7 8 Page 3 of 15 Discuss Denton : Summary Report for20 April 2021 to 11 December 2023 FORUM TOPIC Fair Chance Hiring Ordinance Feedback Visitors Contributors ® CONTRIBUTIONS This must be done because how can expect people to reintegrate society if they can't g Liam Gaume-Wakefield et a job. AGREES DISAGREES REPLIES 3 2 0 16 October 23 This is not a municipal concern. This would be a state legislature concern. My person Dave Collins al opinion is the city has no business trying to tell a business that they are prohibited fr om protecting their personnel and property by screening applicants. AGREES DISAGREES REPLIES 7 1 1 18 October 23 You have no business forcing businesses to hire ex cons. You are adding costs to busi Lincoln nesses. AGREES DISAGREES REPLIES 3 2 0 19 October 23 It seems to me that once someone has served their time,the punishment should be ov kevans14 er. Ex-cons should be able to move on with their lives and improve themselves and so ciety after paying for their crimes. I would be in favor of the'fair chance'initiative. I se e other comments talking about'forcing'businesses to hire ex-cons,but that misrepres AGREES DISAGREES REPLIES ents what's going on. The idea is not to force any hire. It's just to Not force ex-cons to 2 1 0 have to identify as having been convicts. Businesses can hire who they want,on the m Brits, but will do so without necessarily knowing a person's previous convict status. Do I have that right? 23 October 23 Although I am in favor of the'Fair Chance'ordinance in principle, I think you raise an in kevansl 4 teresting point about what level of government this should happen within. Maybe this s hould even be a federal concern...but why necessarily should it be a city concern? Ag ain, I'm in favor,but it's a good point you raise. AGREES DISAGREES REPLIES 1 0 0 Page 4 of 15 Discuss Denton : Summary Report for20 April 2021 to 11 December 2023 FORUM TOPIC Fair Chance Hiring Ordinance Feedback 26 October 23 Do not think this is fair to smaller business.The cost and time put in for interviews,then KW finding out after the fact that someone does not fit,possible missing out on some one w ho was a better fit. AGREES DISAGREES REPLIES �4 1 0 26 October 23 If you have a business'that has lots of children and hires young teenagers,seems you KW would want to know if they had a sexual conviction. AGREES DISAGREES REPLIES 3 0 0 26 October 23 While I think that low level misdemeanors and small convictions could be seen as a hin Lazarus drance to people looking to get hired, because people have a unfair vision of anyone w ho has a conviction. But higher and more dangerous convictions should be disclosed t o protect workers and others. AGREES DISAGREES REPLIES 4 0 0 02 November 23 1 want to thank city staff for doing their due diligence to develop this ordinance. I think t S Hunt hat the ordinance effectively addresses a critical obstacle to citizens who are earnestly working towards gainful employment while putting criminal history behind them. Peop1 e need to work and employers have many jobs that need to be filled. Not all laws or leg AGREES DISAGREES REPLIES al processes are just and not all punishments fit the crime.Our justice system is imperf 0 ! ect.The stigma of having a criminal background is heavy no matter how minor the crim 1 e.When people are unable to obtain an honest living due to discrimination,they have n o choice but to pursue dishonest means of providing for themselves and their depende nts. This ordinance doesn't compel any employer to hire ex-cons. I only wish there wer e a way to help more citizens come to this discussion with a better understanding of th e realities of the hiring process,and without the fear-based misconception that a munici pality would somehow be motivated to coerce employers to hire former criminals again st their wishes.Comments to the effect of the city being the wrong level of government to address the issues strike me as NIMBY-ism. I think that should this ordinance be ad opted and the local unemployment rate decrease, Denton will be well-regarded for its I eadership and visionary approach. Page 5 of 15 Discuss Denton : Summary Report for20 April 2021 to 11 December 2023 FORUM TOPIC Fair Chance Hiring Ordinance Feedback 05 No\) We live in a wonderful society where you can get a first,second,third chance etc. if/wh KAS en necessary.Those scenarios are entirely common,and as an employer in this count y for decades,we have engaged in employing folks looking for opportunities,based on a criteria we have for public safety and our consumers. For context,the State of Texas, AGREES DISAGREES REPLIES the City of Denton, Denton County and the entire business community in this State hav 2 O O e and are participating in"At-Will"employer/employee relationships.Quite literally,this means that any entity and person seeking employment in/and doing business in the St ate of Texas are in a default employment relationship.Which interprets to that employe rs and employees can terminate or modify the employment at any time,for any reason, without notice or jurisdiction,unless prevented by law or express agreement. This quit e literally gives them the governing bodies authority to discriminate based on their hirin g and employment criteria for any reason or without,at any time.The same applies to c ommerce,you are free to conduct and engage in business with anyone in the product s pace you are pursuing,both as the offerors and the potential receivers of such goods o r services.That's why Texas is booming and Fortune 500 companies are continually m oving in and investing in Texas.The question is,will the governing bodies comply with the ordinance that is being proposed to the private business sector?And the answer is no.-From the private business side,there are costs that will effect the COGS of any bu siness when efficiencies are compromised, including the hiring process. It's part of the general overhead,often overlooked,but the value is present regardless.And I have yet to see a successful business or organization that does not require efficiencies, regardle ss of their models. (In our personal business and corporate operations,we look for tale nt,but we assess every aspect of the hiring process to best fill a position for employme nt that represents the culture we are maintaining,developing and/or creating.That proc ess includes people being up front honest and transparent about whatever offense the y have committed.We as the employer maintain control to create the culture we want t o best represent our core values and services.And that has historically included emplo ying people with previous convictions, H1 B visas,wherever the talent pool takes us. B ut ultimately, it's our process and our decision.And omitting information would be view ed as deceitful and not very helpful to the prospective applicant.) -Looking at it from th e employee side,why would you want to apply and possibly work for an organization th at has the potential to discriminate against you?Would it not be better for an individual to understand prior to application to know and understand that they may not be qualifie d for any various reason set forth for employment?Thus increasing their opportunity to be efficient in finding gainful employment.As prospective hire, if hired as an employee would you stand to gain by being in an uncomfortable work environment?If in the end t he employer has a set of criteria,which will be made know in the process ultimately,an d restricts your employment,would you not wish to know that as well?So as not to was to your time and be in the best position based off of your personal criteria to be success ful in achieving gainful employment?- In conclusion, I personally feel that people who have paid their debt to society,have paid their debts when in compliance. I also find it e xtremely valuable to an employer to have the ability to create a job position or career o pportunity based on whatever criteria they set. It's not up to the local municipality to dec ide how you run or operate your business,that's for you and the markets to decide.An d if you develop a product that is beneficial to your community,you will be rewarded re gardless of who the employee class is or were. I am curious to what the"prosecutorial commission to be created"(at taxpayers expense)would use as a criteria for"investiga ting"and potentially prosecuting local business owners for trying to create the best pro duct they can for their communities safely and efficiently?Which prosecuting such"offe nse", in itself is a conflict of interest with the State of Texas and business practices. Pro secution in turn,which would pit the State(prosecuting municipal attorney),against the State of Texas and their adopted business laws.The municipalities have to either enfor ce exiting laws,engage in another losing legal battle,or seek relief through the Iegislati ve process. I would also suspect that a lawsuit would arise from the State itself and th e business community,against this proposed ordinance if enacted,in which the taxpay ers of the City of Denton will be left defending,and losing,wasting$million$more,just as we have in recent legal losses that we are still on the hook for and are paying. I'm of ten reminded of that wastefulness engaged in when attempting to maneuver around or running over a pot hole,as many taxpaying citizens are as well. And then ask yourself , if the proposers of the ordinance were liable and the fiduciary protections were remov ed against elected officials,would they govern and behave the same way?The answer to that as well is no,the proposers will not risk personal wealth and treasures. Thanks as always for the opportunity to chime in and for the platform to do from. Page 6 of 15 Discuss Denton : Summary Report for20 April 2021 to 11 December 2023 FORUM TOPIC Fair Chance Hiring Ordinance Feedback If you are in a business employing high school and college age boys&girls,there Bob must be some way of screening possible employees who might be either working along side or managing these other employees.You should not be restricted from finding out about questionable background right up front.Saves everyone time and disappointmen AGREES DISAGREES REPLIES t 3 0 0 06 November 23 I'm always guarded against accepting rules from authorities who will not accept the sa Bob me rules themselves.What's good for the goose should also be good for the gander. M y understand is that our city departments will not be held to the same requirement(s)s et by the Fair Chance Employment rules&restrictions being discussed. AGREES DISAGREES REPLIES 4 0 0 06 November 23 The members of a seven member City Council in a city like Denton,with two universiti Bob es and a community college and literally hundreds of businesses should not have the a uthority to establish restrictions on what questions owners/managers can ask"up front "of a prospective employee.Such questions&answers could help determine saf AGREES DISAGREES REPLIES ety factors,actions,environment or other key elements affecting their business,other 3 2 0 employees,their operation and their business's performance.Too often,those governi ng members have little,or no,experience actually hiring employees themselves or dev eloping/running a business. 07 November 23 Quit virtue signaling. How about you fix streets,support law enforcement,decrease va Ttocsdor grancy,&lower our taxes rather than waste time on on your pet social causes. W e have enough federal hiring guidelines to choke on.Stay in your lane. I own a financi al services business. Do you want a money launderer involved in handling your money AGREES DISAGREES REPLIES ? 1 2 0 07 November 23 Why don't you help people without criminal records get jobs?Why would you advertise Denton for criminals to come work in our city?Then they move here then we have more crime. AGREES DISAGREES REPLIES 0 1 0 13 November 23 I am wondering why the city of Denton really wants to pass this ordinance. Is it becaus Angela a Austin passed it,so now we need to pass it?Why does our Denton leadership want to be the next Austin?We can see how left leaning policies have destroyed that city.Al so,why does Denton leadership want to control how small businesses operate?They AGREES DISAGREES REPLIES should be grateful that businesses provide tax dollars to fund their pursuits. 2 1 0 Page 7 of 15 Discuss Denton : Summary Report for20 April 2021 to 11 December 2023 FORUM TOPIC Fair Chance Hiring Ordinance Feedback zO Any profession that requires a fiduciary relationship with others must be excepted. Als Mark o, many crimes involve violence or moral turpitude which could affect the duty of an em ployer to provide a safe workplace....unfairly placing other employees at risk and/or for cing an employer to be held accountable for not protecting other employees(in the eve AGREES DISAGREES REPLIES nt a workplace incident happens with an employee with such a history).Other criminal 1 history(e.g. minor,with no violence or honesty issues) may not involve such risk to thir 4 1 d parties.Finally,while we are at effectively full employment with many jobs going unfill ed that may be by preference or choice of the unemployed,a compelling need for such an accommodation may not exist, meaning the risk may not be worth imposing such a r egulation. 20 November 23 My office would have some concerns about this legislation. Everyone in our office has Franny full access to hundreds of client's personal information,such as full names,social secu rity numbers,addresses,and birthdates. We have to be very careful when hiring,and would not be able to hire someone with a criminal history. AGREES DISAGREES REPLIES 3 0 0 21 November 23 1 have concerns about the ordinance as written. My company does not generally take c Kels riminal history into account when hiring, however we do inquire about criminal history i n our application.We do not make interviewing or hiring decisions based on this inform ation, but we do consider whether an applicant can be honest in answering and approp AGREES DISAGREES REPLIES riate in reflecting on the history. It is also the best opportunity to frankly discuss the crim 3 i O inal history productively with the applicant if there are concerns. I see the City saying th I at federal or state law requiring background checks supersedes this ordinance,but my staff fall outside those very specific jobs even though many have access to very sensiti ve personal and financial information,come into contact with children regularly as part of their duties,etc. If nothing else,prior knowledge of criminal history might affect the a ccess and supervision given to a new staff member. Due to the nature of our business, there is not usually much, if any,of a waiting period between an offer of employment an d starting in a position,so the idea of making a conditional offer and only then explorin g criminal history is fairly unworkable for us. I understand that the City is trying to acco mplish something positive here,but I think the actual result is going to be increasing th e burden and management of hiring processes(which my company tries to keep simpl e and up-front)with no material gain to the stakeholders they are trying to assist.Havin g said all of that, upon closer reading,the City seems to be trying to sidestep certain co mplications by inserting the underlined section suggesting that the prohibited conduct i s only prohibited if it results in unlawful discrimination.And if that's the case,then I am not really sure what the point of the ordinance is,as unlawful discrimination is already u nlawful and this ordinance would simply add confusion to a hiring process that can alre ady be burdensome for employers. 24 November 23 Businesses should be allowed to make hiring decisions for themselves and not have re Shawash2 gulations put on them that restricts them.Who they choose to hire is their decision,and no one else's. AGREES DISAGREES REPLIES 2 0 0 Page 8 of 15 Discuss Denton : Summary Report for20 April 2021 to 11 December 2023 FORUM TOPIC Fair Chance Hiring Ordinance Feedback 25 November 23 1 was going to reply to this discussion but this gentleman's statement sums up what I w Eh as going to express.The ordinance is nonsense! AGREES DISAGREES REPLIES 0 0 0 26 November 23 He governs best who governs least. First requirement of creating laws is to do no harm Mark .This proposal has a good motive, but the unintended consequences are legion and off set any substantive value. Second requirement for lawmaking is that a law should ONL Y be created to address a compelling need that cannot be resolved otherwise. That ne AGREES DISAGREES REPLIES ed at a time of effective full employment has not been demonstrated. 1 1 0 Page 9 of 15 Discuss Denton : Summary Report for20 April 2021 to 11 December 2023 QANDA Submit a Question Visitors Contributors Q CONTRIBUTIONS IQ Seanjake October 23 Have you considered the unintended consequence, which has been documented following similar"ban the box"initiat ives,that employers may simply avoid hiring anyone who seems like they may have had a criminal background,thus actually narrowing hiring opportunities instead of increasing them? A Publicly Answered Thank you for your feedback. One of the reasons the City is providing multiple opportunities for community and busin ess input is to ensure we are considering any potential unforeseen and unintended consequences. Q Seanjake Will organizations and businesses that work with vulnerable communities (child care, pregnancy care, human traffickin g recovery, etc.) still be able to require criminal background checks, even in the absence of federal regulations requiri ng them? A Publicly Answered A Fair Chance Hiring Ordinance does not prohibit an employer from inquiring about an applicant's criminal history if th ere are federal or state laws that require a criminal history check, or if a conviction of a criminal offense would disqualify a person from holding a particular position (e.g., child day care facilities, public safety positions, certain fina ncial or insurance positions) Further, a criminal history check may still be performed, provided it does not result in illegal discrimination, including by a disparate impact of such checks. Page 10 of 15 Discuss Denton : Summary Report for20 April 2021 to 11 December 2023 QANDA Submit a Question Q Glenda So what is to prevent a convicted pedophile from applying for a job at a child care center? Do you think that is ok-- really?Gee,what could go wrong??This proposal is insane. This is government overreach, and we believe the City C ouncil should BACK OFF and leave businesses alone. Glenda and Robert Kallman A Publicly Answered There are laws that disqualify a person from holding a particular position due to a conviction for a certain offense (e.g. , persons employed by child day care facilities, public safety positions, certain financial or insurance positions)so, em ployers for those positions would not violate the ordinance merely by performing a criminal history check unless they did so in a manner that was also in violation of federal or state law. Q GraceWeatherly '��Irniomhor 9'2 There is an exemption for jobs requiring a background check but who decides whether that exemption actually applies?Also how does this affect the affirmative defense created under state law for employers of service&delivery people whose job it is to go inside customer's homes? A Publicly Answered The prospective employer in making its hiring decision will be responsible for determining whether an exemption appli es. If a complaint is filed, and if the complaint is referred to the state or federal agency responsible for investigating e mployment discrimination complaints,that agency will determine whether an exemption applies. If the state/federal ag ency determines it does not have jurisdiction over the complaint, the complaint will be investigated by a third-party inv estigator hired by the City,who will be responsible for determining whether an exemption applies. If the investigator d etermines an exemption applies,the complaint will be closed. Regardless of who investigates the complaint, a prospe ctive employer would be allowed to assert any affirmative defense allowed by law and a final determination on the me rits of the complaint would be made by the investigating authority. Pagel 1 of 15 Discuss Denton : Summary Report for20 April 2021 to 11 December 2023 QANDA Submit a Question IQ Denton 07 November 23 How can the city get involved in a private companies hiring practices? Especially having them waste their time intervie wing someone they will not hire because of there criminal back ground. A Publicly Answered Local, state, and federal governments have the right to regulate,within certain parameters,the hiring practices of priv ate companies to protect individuals from illegal acts of an employer. For example,the United States Congress has p assed legislation that prohibits certain actions of an employer, such as child labor prohibitions and protections, and dis crimination in employment based upon being a member of a protected class, including but not limited to race, religion, national origin, age, and disability. Page 12 of 15 Discuss Denton : Summary Report for20 April 2021 to 11 December 2023 ENGAGEMENT TOOL: QUICK POLL Do you support the proposed Fair Chance Hiring Ordinance? Visitors ®i Contributors CONTRIBUTIONS Do you support the proposed Fair Chance Hiring Ordinance? 1 (3.4%) 3(10.3%) 10(34.5%) 15(51.7%) Question options Yes No Unsure Unsure,and need more information Mandatory Question(29 response(s)) Question type:Radio Button Question Page 13 of 15 Discuss Denton : Summary Report for20 April 2021 to 11 December 2023 ENGAGEMENT TOOL: QUICK POLL Do you live or work in Denton? Visitors 0 Contributors Q CONTRIBUTIONS 0 Do you live or work in Denton? 1 (25.0%) 3(75.0%) Question options Live and work in Denton Live,but do not work in Denton Mandatory Question(4 response(s)) Question type:Radio Button Question Page 14 of 15 Discuss Denton : Summary Report for20 April 2021 to 11 December 2023 ENGAGEMENT TOOL: QUICK POLL What best describes you? Visitors 0 Contributors Q CONTRIBUTIONS 0 What best describes you? 2(50.0%) — 2(50.0%) Question options Business owner/manager Not a business owner/manager Mandatory Question(4 response(s)) Question type:Radio Button Question Page 15 of 15 I Tell us what you think: F a Chance ir Hiring Ordinance "Feedback CITY JOWFA fill , DENTON Feedback sessions hosted by the Denton Chamber of Commerce: Tuesday, Oct. 24 � 4 p.m. Wednesday, Nov. 8 � 4 p.m. Development Services Center (401 N. Elm St.) Virtual Community Meetings: Thursday, Nov. 2 1 4 p.m. Wednesday, Nov. 1516 p.m. Individuals can register to attend virtual community meetings on the City of Denton website at www.cityofdenton.com/virtualcommunitymeetings. In-Person Town Hall: For additional information, such as a summary, the draft ordinance, FAQs, Wednesday, Nov. 1 1 6 p.m. and online feedback opportunitie: www.discussdenton.com/ Development Services Center (401 N. Elm St.) fairchancehirin • • - • �- • • • - . • • • • • • • DENT�N CHAMBER of COMMERCE December 4, 2023 Denton City Council Mayor Gerard Hudspeth Mayor Pro Tempore Brian Beck Councilmember Vicki Byrd Councilmember Paul Meltzer Councilmember Joe Holland Councilmember Brandon Chase McGee Councilmember Chris Watts City Manager's Office Attn: Sara Hensley, City Manager City Hall 215 E. McKinney Street Denton,TX 76201 Dear Mayor Hudspeth, Councilmembers Beck, Byrd, Meltzer, Holland, McGee, and Watts: On behalf of the Chamber, its board of directors, and as an advocate for our 800 members and local businesses around Denton, we write and appear before you today to urge this council not to pass the Fair Chance Hiring Ordinance. We ask, urge, and implore you to instead select an opt-in Second Chance Hiring partnership with the Denton Chamber of Commerce and our local businesses to support America's Hidden Workforce. While we recognize the City Council's attempt to foster equal employment opportunities,this ordinance will have unintended consequences that will adversely impact local business, criminalizing and penalizing the job interviewing process. We do not believe this is the role of our local government, nor is it the best use of our City's time and resources. Discriminatory hiring practices are illegal, and the EEOC exists to investigate such conduct. Passing an ordinance that allows the City to intervene in the local businesses' interviewing process and become an investigatory arm of the EEOC when the EEOC takes no action or has no jurisdiction is not a pro-business initiative. This initiative does not create more jobs nor higher wages. It will only hamstring our ability to attract more businesses and provide fuel for our neighbors and competitors who want to portray our City as an anti-business community. We strongly encourage the Denton City Council to seek alternative means to incentivize, not criminalize, businesses for participating in second chance hiring initiatives. Together,we must focus on partnering businesses with potential employees,without the addition of burdens, penalties, or threats. The Denton Chamber of Commerce implores you to not move forward with the Fair Chance Hiring Ordinance. The Denton business community deserves better. Respectfully, Erin Carter,President Denton Chamber of Commerce Denton Chamberof • 401Denton, 76201JA603082.9693 •- • •- DENTON CHAMBER of COMMERCE DATE: December 21, 2023 TO: Ryan Adams, City of Denton, Chief of Staff FROM: Erin Carter, Denton Chamber of Commerce, Chamber President SUBJECT: Fair Chance Hiring Ordinance, Membership Feedback Mr. Adams, Below you will find a summary of the feedback received from the Denton Chamber of Commerce membership and business community over the past 6 months as it relates to the proposed Fair Chance Hiring Ordinance. The Chamber has taken a formal stance against the ordinance, instead supporting the creation of a second chance hiring program to support the incentivization, not criminalization, of hiring America's Hidden Workforce. Summary of Membership Feedback: • No current problem; creating a solution without necessity. • City of Denton would not be subject to their own ordinance. • Affects the competitiveness to attract new business to Denton. Competing with other cities in surrounding areas that do not have this ordinance would be a strong disadvantage. • City of Denton has not been able to present any current issue that we are trying to correct; cannot cite current examples or employees/individuals with current known experiences —again, creating a solution without necessity. • Most businesses' hiring policies do not deviate from the best practices proposed in the City of Denton's plan. The City has indicated that they would not be subject to the same ordinance because their processes already allow as proposed. If this is the case, a lot of businesses should be able to opt out for the same or similar reasons. • Did the City do a survey/do they have any data showing how many businesses already do Fair Chance Hiring versus do not? • If the City of Denton wants to build its reputation of being anti-business with too much red tape, pass more regulations like this ordinance and start meddling in the interviewing process. Or, incentivize businesses to interview and hire individuals with criminal histories. Don't pass an ordinance that imposes penalties. • Criminal history is not a protected class,but this ordinance begins to push it into that category by treating it as such when seeking protection for such if discriminated against. • Concern that some companies may not be set up for a scenario that would mean hiring someone with prior/past criminal convictions, and do not believe it's a pro-business stance to put a company unwilling in that position. Certainly, in favor of second chances,but opt-in and a partnership with the City, not a mandate. Not the stance the City should take. Denton Chamberof • 1401Denton, 76201941 •- • •- • I am totally against not asking if there has been a felony conviction on the initial employment application. Coming from a family of recovered addictions, I am ALL FOR second chances! Having been a business owner for 40 years, the hiring process is already time-consuming and can be very costly. Adding this government overreach will only make it hard on small business owners. Not asking it up front, some employers may take a shortcut and not run a background check—assuming all is well— which could cause them millions of dollars and loss of public respect if an issue arises. If someone has a felony conviction that is a very long time ago, I think most employers will consider that fact and dive deeper into the interview process and give the individual a chance. I would rather see us have to ask "how long ago was the conviction"—than not having to ask at all or be mandated by an ordinance. • The cost to me as a small business owner for additional insurance to employ someone with a criminal record has been what has stopped me. It's not that I do not believe in second chances—I do—it's that my insurance has not allowed me to take the next step. I think if it's going to cost me what it may, the City needs to consider that no matter the ordinance, it will not lead to expanded jobs, only greater disappointment on both sides—potential employees and employers who are both out longer looking for jobs and looking for individuals. • Allowing the Chamber to work with potential second chance employers and helping job seekers in certain industry markets would better place individuals in jobs in Denton. Instead of asking all employers to change their hiring process, they could highlight companies that are in the financial position or organizational position to hire employees with a criminal background. • The City getting involved in all businesses hiring process but not following the same process for their own hiring and interviewing process seems like a backwards way of imposing an ordinance for businesses,but not understanding what it takes to run a business in their own community. With the cost of running a business, this is not what we need added to the stress and financial concern right now. Hiring is difficult enough. • Denton needs to focus on attracting businesses and not adding to reasons businesses aren't moving here. • So many businesses have already closed this year from financial issues. Having the added cost of doing background checks so late in the process could be detrimental to those of us who are out here trying to survive day-to-day. • I'm concerned about added confusion for businesses that have multi-locations and human resources based out of state—where their hiring takes place. This added layer of government isn't needed for business continuity and friendliness—let's make it easier, not harder, to do business here. • I would love to be able to afford to hire an individual and provide a second chance to someone with a criminal record. But being able to walk through that process on my own and with my team is something that I, as a private business owner, should be allowed to do without the City creating an ordinance and attempting to change the process I use to hire my team. • An ordinance will not decrease discrimination across hiring practices. It will, however, decrease the ability of business owners to control their private businesses and their interviewing processes. The City needs to understand their role in regulation and work with businesses, not against them. • I am concerned that the City Council doesn't understand what it's like to hire and retain talent today. Please do not make this process harder. Stay in your lane and continue to allow private businesses to run how they wish. • Second chance hiring has always been a practice that has benefited certain industries and employers. This ordinance will not increase opportunities for those deserving of a second chance. Instead, it will increase scrutiny and concern about the hiring process. Denton Chamberof • 1401Denton, 76201941 •- • •- • This ordinance will only give individuals with a criminal background false hope and shine negative light on businesses in Denton, potentially leading to discriminatory lawsuits. • I have read studies where "ban the box" laws have caused more racial discrimination by improving hiring opportunities for certain racial groups. I think this will work against the Council's agenda. • Confusion about actual process/steps to determine if there was discrimination or not. If Council passes this, they will need to carve out time to educate every business owner that this impacts. Wording is incredibly confusing—how can we abide by this if we can't understand it? • If my business is investigated, this becomes public record. This could be tarnishing to my business, even if I was proven innocent and no discrimination occurred. Is the City ready to be sued for defamation to my business and loss of customers? • How much will this cost the City to hire someone to manage, maintain and keep up with this? Will this need to be a whole new department? Seems like an added cost for something that is not necessary, and provides additional threatening oversight. • The entire process, should an issue arise, labels the business guilty until proven innocent. As seen in the comments from the business community, the Denton Chamber of Commerce implores you not to move forward with the Fair Chance Hiring Ordinance, and instead opt-in for a positive second chance hiring partnership. Sincerely, Erin Carter President, Denton Chamber of Commerce Denton Chamberof • 1401Denton, 76201941 •- • •- ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AMENDING CHAPTER 14, ARTICLE VIII OF THE CODE OF ORDINANCES (NON-DISCRIMINATION IN PUBLIC ACCOMMODATIONS, EMPLOYMENT PRACTICES, AND HOUSING), TO ADD A FAIR CHANCE HIRING PROVISION TO SECTION 14-203-5 SETTING HIRING STANDARDS TO LIMIT EMPLOYERS' CONSIDERATION OF THE CRIMINAL HISTORY ON AN INITIAL JOB APPLICATION; PROVIDING SEVERABILITY; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR PUBLICATION AND CODIFICATION; PROVIDING FOR A PENALTY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton recognizes that people with criminal histories suffer from pervasive discrimination in many areas of life, including employment, housing, education, and eligibility for many forms of social service benefits; and WHEREAS, an employer's neutral policy (e.g., excluding applicants from employment based on certain criminal conduct) can disproportionately impact some individuals based on their race or national origin as described in the U.S. Equal Employment Opportunity Commission Enforcement Guidance on the Consideration of Arrest and Conviction Records in Employment Decisions under Title VII of the Civil Rights Act,EEOC Enforcement Guidance No. 915.002; and WHEREAS, the City of Denton recognizes that legal protections extended to most protected classes under federal and state law do not apply to persons with criminal histories; and WHEREAS,the City of Denton seeks to assist with the successful reintegration of formerly incarcerated people into the community after their release; and WHEREAS, lack of employment is a principal factor for recidivism, with people who are employed proving significantly less likely to be re-arrested; and WHEREAS, removal of obstacles to employment for people with criminal histories increases public health and safety by providing economic and social opportunities to large groups of citizens; and WHEREAS, people with criminal histories represent a group of job seekers who are ready to contribute and add to the workforce; and WHEREAS, the City Council finds that denying an employment opportunity to an otherwise qualified person based on the person's criminal history that is not relevant to the job under consideration is unjust; is detrimental to the health, safety, and welfare of the residents of the City; prevents the reintegration of the person into the community; creates a burden on public resources and law enforcement; contributes to crime and recidivism; and contributes to unemployment and harms the local economy; and WHEREAS, the Council further finds that it is within the police power and the responsibility of the City to remedy the problems enumerated in herein; and WHEREAS,the City Council declares it to be the public policy of the City that all persons subject to its jurisdiction should enjoy equal human rights, including the ability to earn wages through gainful employment, without being subject to discrimination based on their criminal history;NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this Ordinance are incorporated herein by reference to the body of this Ordinance as if fully set forth herein. SECTION 2. The City Council finds that adopting this amendment to Chapter 14, Article VIII, that Section 14-203-5 of the City Code of Ordinances removes an obstacle to employment for people with criminal histories, increases public health and safety by providing economic and social opportunities to large groups of citizens, ameliorates the disproportionate impact of certain hiring practices on individuals based on their race or national origin, and enhance the quality of life of the citizens of the City of Denton and serves a compelling governmental interest. SECTION 3. Chapter 14, Article VIII of the City of Denton Code of Ordinances, entitled"Non- Discrimination in Public Accommodations, Employment Practices, and Housing," is hereby amended to add Section 14-203-5(c), entitled"Fair Chance Hiring," and provided as follows: "Sec. 14-203-5: Employment Practices (c) Fair Chance Hiring (1) Policy Declarations. (a) The City of Denton celebrates its diverse population, and to that end, it is hereby declared to be the public policy of the City of Denton that all persons subject to its jurisdiction should enjoy equal human rights, including the ability to earn wages through gainful employment. (b) The City of Denton recognizes that legal protections extended to most protected classes under federal and state law have not been extended to protect individuals with criminal histories, but that excluding applicants for employment based on criminal history may result in discrimination, whether by intent or by unlawful disparate impact, that denies equal employment opportunities due to an applicant's race, color, national origin, age, religion, disability, sex, sexual orientation, or gender identity. (c) The City of Denton recognizes that an employer that rejects everyone with a criminal conviction from all employment opportunities is likely engaging in 2 discrimination, and that an employment policy that rejects many more applicants of one race, color, national origin, age, religion, disability, sex, sexual orientation, or gender identity is discriminatory if the policy is not closely related to the job. (d) The City of Denton has determined that employers waiting until later in the hiring process to inquire about an applicant's criminal history will reduce discrimination,whether by intent or by unlawful disparate impact,that denies equal employment opportunities due to race, color, national origin, age, religion, disability, sex, sexual orientation, or gender identity. (2) Definitions: (a) In addition to the definitions in Section 14-203-2, the following definitions also apply to Subsection 14-203-5(c). (b) In Subsection 14-203-5(c),the following words,terms,and phrases,when used, shall have the meanings ascribed to them,except where the context clearly indicates a different meaning: Adverse Action means an employer's refusal to hire, a refusal to promote, or the revocation of an offer of employment. Applicant means an individual who submits an initial job application or other documentation for employment. Conditional Employment Offer means an oral or written offer by an employer to employ an individual in a job, or placement in an employment agency's staffing pool, that is conditioned on the employer's evaluation of the individual's criminal history. Conviction means a record from any jurisdiction that includes information indicating that a person has been convicted of a felony or misdemeanor, provided that the conviction is one for which the person has been placed on probation, fined, imprisoned, or paroled. Criminal History means an arrest, conviction, plea of nolo contendere, or deferred adjudication arising from a felony criminal accusation, or a Class A or Class B misdemeanor criminal accusation, made under state law, federal law, or a comparable law of another state of the United States. Criminal History Report means any criminal history report, including, but not limited to, those produced by the Texas Department of Public Safety, National Crime Information Center (NCIC), Federal Bureau of Investigation, other law enforcement or police agencies, or courts, or by any consumer reporting agency or business or employment screening agency or business. 3 Employment means to work for an employer for pay. The term includes full time work, part time work, temporary or seasonal work, contract work, casual or contingent work, work through the services of a temporary or other employment agency, and participation in a vocational, apprenticeship, or educational training program. Individualized Assessment means an evaluation of the criminal history of an individual that includes, at a minimum, the following factors: (1) the nature and gravity of any offenses in the individual's criminal history; (2) the length of time since the offense and completion of the sentence; and (3) the nature and duties of the job for which the individual has applied. Initial Job Application means the first written or oral expression of interest in a job by an individual made in compliance with the employer's established criteria for receiving expressions of interest. Job means an employment position with an employer for which the employer has solicited or accepted applications and which the employer is currently attempting to fill. Staffing Pool means a list of individuals retained by an employment agency before the assignment of a specific job to perform for another employer. (3) Applicability (a) Subsection 14-203-5(c) applies to an employer as defined in Section 14- 203-2. (b) Subsection 14-203-5(c) does not apply to employment for which an individual may be disqualified based on the individual's criminal history under a federal, state, or local law, or compliance with legally mandated insurance or bond requirement. (c) Nothing in Subsection 14-203-5(c) limits an employer's authority to make a hiring decision for any lawful reason, including the determination that an individual is unsuitable for the job based on an individualized assessment of the applicant's criminal history. (4) Fair Chance Hiring Practices 4 (a) An employer may not commit any of the following listed actions where such action results in discrimination, whether by intent or by unlawful disparate impact, that denies an applicant an equal employment opportunity due to race, color, national origin, age, religion, disability, sex, sexual orientation, or gender identity: (1) An employer may not publish or cause to be published information about a job that states or implies that an individual's criminal history automatically disqualifies the individual from consideration for the job. (2) An employer may not solicit or otherwise inquire about the criminal history of an individual in an initial job application for a job. (3) An employer may not inquire in oral or written form about an applicant's criminal history, solicit a criminal history report about an applicant, or consider an applicant's criminal history before the employer has first made a conditional employment offer to the applicant. This does not preclude an employer from explaining to applicant, in writing, the individualized assessment process that the employer uses to consider criminal history. (4) An employer may not refuse to consider employing an individual in a job because the individual did not provide criminal history information before the individual received a conditional employment offer. (5) An employer may not take adverse action against an individual because of the individual's criminal history unless the employer has determined that the individual is unsuitable for the job based on an individualized assessment conducted by the employer. (6) An employer who takes adverse action against an individual based on the individual's criminal history must inform the individual in writing that the adverse action was based on the individual's criminal history. (7) Notwithstanding any other part of Subsection 14-203-5(c), an employment agency may solicit criminal history information about an individual and make an individualized assessment of an individual's criminal history before the staffing agency places the individual in a staffing pool or has identified a job to which the individual will be employed." SECTION 4.This Ordinance shall be cumulative of all provisions of ordinances of the City of Denton, except where the provisions of this Ordinance are in direct conflict with the provisions 5 of such ordinances, in which event the conflicting provisions of such ordinances are hereby repealed. SECTION 5. All other provisions of Chapter 14,Article VIII apply to Fair Chance Hiring except where there is a direct conflict with a specific provision of Section 14-203-5(c), in which case the specific provision of Section 14-203-5(c) shall control. SECTION 6. It is hereby declared to be the intention of the City Council that the phrases, clauses, sentences, paragraphs, and sections of this Ordinance are severable, and if any phrase, clause, sentence, paragraph, or section of this Ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences,paragraphs, and sections of this Ordinance, since the same would have been enacted by the City Council without the incorporation in this Ordinance of any such unconstitutional phrase, clause, sentence,paragraph, or section. SECTION 7. The City Secretary is hereby directed to record and publish the above regulations in the City's Code of Ordinances. SECTION 8. Any person violating any provision of this Ordinance shall,upon conviction, be found guilty of a Class "C" misdemeanor and fined a sum not to exceed five hundred dollars ($500.00) for each violation. SECTION 9. This Ordinance shall become effective one hundred-twenty (120) calendar days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this Ordinance to be published twice in the Denton Record-Chronicle, the official newspaper of the City of Denton, Texas, within ten(10) days of the date of its passage. The motion to approve this Ordinance was made by and seconded by ; this Ordinance was passed and approved by the following vote Aye Nay Abstain Absent Mayor Gerard Hudspeth: Vicki Byrd,District 1: Brian Beck,District 2: Paul Meltzer,District 3: Joe Holland, District 4: Brandon Chase McGee, At Large Place 5: Chris Watts,At Large Place 6: 6 PASSED AND APPROVED this the day of , 2023. GERARD HUDSPETH, MAYOR ATTEST: JESUS SALAZAR,CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: MACK REINWAND,CITY ATTORNEY BY: o� 7