Expanding support for people with criminal
backgrounds by advancing public policy agenda, investing more than
$7 million in community organizations, collaborating with other
businesses and enhancing firm hiring strategy
New JPMorgan Chase PolicyCenter to develop and
advance policy solutions to drive inclusive economic growth,
beginning with Second Chance hiring to remove barriers to
employment
JPMorgan Chase is expanding its commitment to giving people with
criminal backgrounds a second chance by supporting their reentry
into the workforce, community and local economies. The firm today
lays out a new public policy agenda, invests more in communities
and enhances its own hiring strategy in collaboration with other
businesses to create economic opportunity for more people.
The unemployment rate is an estimated 27 percent for the roughly
5 million formerly incarcerated people in the U.S. — more than five
times the overall national rate — and research shows that over
600,000 people are released each year from prison. Policymakers and
businesses increasingly recognize that providing education, skills
training and employment opportunities to people with arrest or
conviction histories helps reduce recidivism, increase public
safety, build stronger communities and strengthen the economy.
JPMorgan Chase’s new efforts apply lessons learned and best
practices as a major employer and from its community investments in
cities like Detroit and Chicago. Specifically, the firm will apply
its business resources and expertise — including data, research,
talent and philanthropic investments — and collaborate with policy,
business and community leaders to address the socioeconomic costs
of barriers to employment for people with arrest or conviction
histories.
The firm will help people with criminal backgrounds build
in-demand skills and gain access to employment by:
- Public Policy Agenda: Advancing a public policy agenda
through the new JPMorgan Chase PolicyCenter that reduces barriers
to employment for people with criminal backgrounds;
- Community Investments: Making new community investments
to support people with criminal backgrounds in cities like Chicago,
Detroit, Nashville, New York, Seattle and Wilmington, Delaware that
focus on career development, financial health and entrepreneurship,
and encourage more companies in growing industries to hire them;
and
- Hiring: JPMorgan Chase “banned the box” by proactively
removing all questions about criminal backgrounds from job
applications and is now enhancing its strategy to attract a broader
applicant pool, including people with criminal backgrounds.
“Business has a responsibility to partner with policy, business
and community leaders to create an economy that works for more
people. When someone cannot get their foot in the door to compete
for a job, it is bad for business and bad for communities that need
access to economic opportunity,” said JPMorgan Chase Chairman
and CEO Jamie Dimon. “Giving more people a second chance allows
businesses to step-up and do their part to reduce recidivism, hire
talented workers, and strengthen the economy.”
1. Public Policy Agenda
Today, JPMorgan Chase launched the JPMorgan Chase PolicyCenter,
which will develop and advance sustainable, evidence-based policy
solutions to drive inclusive economic growth in the U.S. and around
the world.
Heather Higginbottom has joined the firm as President of the
PolicyCenter. She previously served in senior policy roles in
United States government, including Deputy Secretary of State,
Deputy Director of the White House Office of Management and Budget,
and Deputy Director of the White House Domestic Policy Council.
“Business must play a critical role in advocating for policies
that unlock economic opportunity for more people in underserved
communities,” said Heather Higginbottom, President of the
JPMorgan Chase PolicyCenter. “By working with political,
business and community leaders, we will help advance public policy
solutions that drive inclusive growth at all levels of
government.”
The PolicyCenter is powered by the firm’s global business
resources and expertise, including data, research, talent, and
philanthropic investments. It builds on the firm’s commitment to
connecting underserved people with economic opportunity and will
work with policy, business and community leaders to advance
effective public policy solutions at all levels of government.
It will focus on issues such as job skills and education, small
business capital and growth, community and economic development,
infrastructure, affordable housing and financial health, and will
begin by advocating for policies that lower barriers to employment
for people with criminal backgrounds.
- Reforming Financial Services Industry Hiring Rules: The
Federal Deposit Insurance Corporation limits financial
institutions’ ability to hire people with specific types of
criminal backgrounds. JPMorgan Chase has supported recent reforms
to Federal Deposit Insurance Act Section 19 and recommends making
further changes to increase access to employment for affected
workers, while maintaining the safety and soundness of the nation’s
depository institutions.
- Restoring Pell Grants: Restoring access to Pell Grants
for incarcerated individuals who are academically eligible for
higher education and increase their opportunity to find employment
after their release, leading to reduced recidivism, enhanced public
safety, lower government spending on prisons and higher earnings.
The Violent Crime Control and Law Enforcement Act of 1994 included
a ban on providing Pell Grants to incarcerated individuals.
- Fair Chance Hiring: Supporting federal and state efforts
to require background checks only after applicants have been given
a conditional offer of employment. Requiring disclosure of criminal
backgrounds on an initial employment application reduces the
likelihood of callbacks and job offers from potential employers,
even if an individual’s background has no bearing on job
requirements.
- “Clean Slate” Record Clearing: Supporting federal and
state-level efforts to enact and implement automatic record
clearing. The process for record clearing and expungement, which
many states allow for crimes committed as a juvenile and for most
misdemeanors, is time consuming and costly, creating barriers to
employment.
- Reforming Fines and Fees in the Justice System:
Supporting efforts to reform laws that suspend drivers’ licenses
for failure to pay fines or that right-size payments and provide
alternative paths to compliance to ensure that millions of
Americans can access workforce opportunities, improve their
financial health and successfully reintegrate into their
communities.
- Entrepreneurship: Supporting efforts at the state and
federal level to expand entrepreneurship resources that provide
greater economic opportunities and mobility for people with
criminal backgrounds and reduce recidivism.
“In Delaware, we know it’s important to offer our neighbors a
second chance, to allow Delawareans who have a criminal history to
compete for a job and contribute to our success as a state,” said
Delaware Governor John Carney. “That’s why we are excited
about these initiatives from JPMorgan Chase – a major employer in
Delaware. The company is already making important progress on its
commitment to hire Delawareans and Americans with criminal
backgrounds, which is incredibly important. These additional
community investments, and the company’s leadership on second
chance policy initiatives, will help build on that progress in our
state and across the country.”
“This important effort by JPMorgan Chase will undoubtedly pave
new pathways to opportunity for people with criminal backgrounds,”
said Utah Governor Gary Herbert. “It’s a win-win for
residents and employers in both the State of Utah and across
America. Time and time again, we see that when businesses step up
to the plate like this – working with policy leaders to bring forth
solutions that expand opportunity for those who need it most –
there is a significant community impact. It is a model for other
businesses to look at in regards to establishing more inclusive
hiring practices.”
2. Community Investments
JPMorgan Chase is investing more than $7 million to help
community organizations in cities like Chicago, Detroit, Nashville,
New York, Seattle and Wilmington connect people with criminal
backgrounds with in-demand, well-paying jobs, the tools and
resources they need to achieve their financial goals, and
entrepreneurship training.
- Skills Development: Collaborating with organizations
such as the Heartland Alliance’s Rapid Employment and Development
Initiative (READI) and North Lawndale Employment Network in
Chicago, Project Return in Nashville and The Prosperity Agenda in
Seattle to offer people with criminal backgrounds access to
training space, skills training, mentorship and the other resources
that would help them qualify for in-demand jobs across a multitude
of sectors, including mechanics, hospitality, public safety,
sanitation, construction, carpentry, manufacturing, management and
distribution industries, among others.
- Financial Health: Supporting organizations like Credit
Builders Alliance, The Financial Clinic and the Detroit Employment
Solutions Corp. (DESC) to expand financial coaching and build
credit for people on parole and with criminal backgrounds.
- Small Business: Working with organizations like
Refoundry in New York to boost small business growth and
entrepreneurship training for people with criminal backgrounds,
using repurposed and restored home furnishings as a training
pathway.
- Best Practices: Collaborating with organizations like
the National Employment Law Project (NELP), the Safer Foundation,
the Center for Law and Social Policy (CLASP), Rodel Foundation of
Delaware and the Dave’s Killer Bread Foundation to launch best
practice toolkits and planning resources that help with the
recruitment, hiring and retention of people with criminal
backgrounds by major employers.
This builds on JPMorgan Chase’s proven investment model for
impact through its $500 million AdvancingCities investment, which
has been recognized by Harvard Business School and Fortune. It also
expands on a previous $5 million commitment to give people with
criminal backgrounds a second chance and the firm’s existing
efforts to develop best practices for the hiring of individuals
with criminal backgrounds. Examples of previous philanthropic
investments include supporting Texas’ Prison Entrepreneurship
Program, collaborating with the National League of Cities to reduce
the impact of court-related fines and fees, and developing a
toolkit in collaboration with the NELP to provide guidance on
hiring individuals with arrest or conviction backgrounds in the
healthcare industry.
“Despite some progress, there remain too many unnecessary
barriers that make it especially difficult for people with arrest
or conviction records to fully contribute to our society,” said
Vanita Gupta, president and CEO of The Leadership Conference on
Civil and Human Rights. “Private sector collaboration is
necessary to move the needle and achieve real change. When
corporate partners advance, implement, and resource inclusive
solutions, we improve opportunities across the board. We commend
JPMorgan Chase for its leadership and commitment to fair chance
hiring and for advocating for policies that will give more people a
true chance at getting ahead.”
3. Hiring
In 2018, JPMorgan Chase hired approximately 2,100 people in the
U.S. with criminal backgrounds — roughly 10 percent of new hires.
Many were arrested for or convicted of low-level crimes such as
disorderly conduct, personal drug possession and DUI (driving under
the influence), and are employed in entry-levels jobs such as
transaction processing, and lending and account servicing.
To further broaden the applicant pool for job opportunities at
the firm, enhance the hiring process and expand our commitment to
building a diverse workforce, several actions are being taken:
- JPMorgan Chase is committed to Second Chance hiring and “banned
the box” to increase the access of people with criminal backgrounds
to jobs at the firm. This helps ensure qualified applicants with
criminal backgrounds receive the same consideration as any other
applicant, when their background has no bearing on job
requirements.
- Launching new collaborations with community organizations to
help JPMorgan Chase further build its pipeline for hiring people
with criminal backgrounds — whose histories fit within industry
regulatory guidelines — through training and mentorship programs,
starting in Chicago. Some of the Chicago-based organizations that
the firm is collaborating with include Skills for Chicagoland’s
Future, Cara, the Safer Foundation and Cabrini Green Legal
Aid.
- Enhancing the firm's review and assessment process to help
ensure that candidates, including those with a criminal background,
are evaluated based on their qualifications and are not a risk to
JPMorgan Chase’s employees and customers.
In addition, JPMorgan Chase will work with other employers
committed to adopting and promoting second chance hiring policies
by sharing best practices, insights and learnings.
“Koch has always believed that capable and qualified individuals
who want to work hard and contribute to society should have every
opportunity to thrive. Second chance hiring enhances public safety,
helps keep families together by decreasing recidivism, supports a
valuable talent pool, and gives people who have made mistakes and
found redemption, the dignity of work,” said Mark Holden, senior
vice president of Koch Industries, Inc. “We are proud to see
business leaders like JPMorgan Chase take a stand to break down
barriers. Together, we hope to help forge pathways of success for
Americans looking to reenter the workforce and create a better life
for themselves and the communities around them.”
“At a time when businesses are struggling to find qualified
talent, employers can’t afford to continue punishing men and women
who have served their time. When we give those who are qualified a
second chance at stable employment, individuals, business and
society win,” said Johnny C. Taylor, Jr., President and Chief
Executive Officer of SHRM—the Society for Human Resource
Management. “JPMorgan Chase is leading change by advocating for
policies that knock down barriers to employment for people with
criminal backgrounds. I hope other human resource and business
leaders will follow this example.”
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global
financial services firm with assets of $2.8 trillion and operations
worldwide. The Firm is a leader in investment banking, financial
services for consumers and small businesses, commercial banking,
financial transaction processing, and asset management. A component
of the Dow Jones Industrial Average, JPMorgan Chase & Co.
serves millions of customers in the United States and many of the
world’s most prominent corporate, institutional and government
clients under its J.P. Morgan and Chase brands. Information about
JPMorgan Chase & Co. is available at www.jpmorganchase.com.
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Media Contact: Amalia Kontesi,
amalia.kontesi@jpmchase.com
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