WHY KOCH INDUSTRIES ‘BANNED THE BOX’

Rejecting job applicants with criminal records is bad for America and those in need of a second chance

By Mark V. Holden

The Wall Street Journal
August 17, 2016

No matter what one thinks about the criminal-justice reform bills under consideration in
Congress, most everyone agrees that people with criminal records who have served their time
deserve a second chance. Sadly, that chance is too often out of reach—a problem businesses can
help solve.

Few things are as important for people trying to rejoin society as having a job. According to the
Justice Department, more than 650,000 incarcerated individuals return to their communities
every year, and after years behind bars they desperately need a chance to find personal
fulfillment and provide for themselves and their families. But a combination of government
restrictions and business hiring processes too often leave them with few, if any, opportunities for
gainful employment.

The results are as predictable as they are disheartening. When people with criminal records
struggle to find work, they become much more likely to re-offend. The lack of employment is
one of the key reasons why over two-thirds are re-arrested, over half are re-convicted, and two
out of five are re-incarcerated within three years of release.

The resulting increases in crime and incarceration rates affect everyone, first through a decrease
in local safety, second through higher costs to taxpayers, and third through the lost value that
those individuals could have brought to the economy. A 2010 study by the Center for Economic
and Policy Research estimates the annual lost economic value at between $57 billion and $65
billion.

To help end this sad cycle, businesses should consider instituting a “ban the box” hiring policy. A 2009 study by Harvard and Princeton researchers showed that checking the box on a job
application that indicates a criminal record reduces the chances of a callback by 50%, with
blacks hurt twice as much as white applicants with criminal records. By eliminating or delaying
this question, candidates are less likely to be rejected before their qualifications are considered.

We employ this approach at Koch Industries—we officially removed the box last year, delaying
the question until later in the hiring process. Before that, we had a process by which we reviewed
a job candidate’s offense to determine whether it was job-related. Even if it was, we engaged in a
further review into the nature of the offense and the time passed since its occurrence. The
combination of these two policies has resulted in job offers to thousands of candidates with
criminal records.

Many of those hired have been dedicated employees who have risen through the company’s
ranks. For example: We recently hired three individuals who were incarcerated at a local prison
in one of the states where Koch Industries has a manufacturing presence. The feedback from
their supervisors and peers has been uniformly positive; the employees have been successful by
all accounts. More important, each is on a path toward a productive and fulfilling life—
something they otherwise might not have had.

We believe that banning the box makes sense from a business perspective. The Federal Bureau of Investigation estimates some 77.7 million Americans, or nearly one in three adults, have some
type of criminal record. For employers seeking the best talent, it makes sense for a company to
consider all factors, including any prior criminal record, in the context of a candidate’s other life
experiences. We are in a global competition for the best talent period—not the best talent with or
without a record.

While we support policies that ban the box for public-sector employers, we understand that a
ban-the-box policy may not work for every private business. That is why we oppose legislative
attempts—at the local, state or federal level—to mandate that this policy be adopted by the
private sector. But we nonetheless urge companies to consider whether this policy works for
them.

Many employers have already concluded that it does, including Facebook, Target andHome
Depot. Freedom Partners Chamber of Commerce, where I serve as chairman, sent aletter to more
than 100 of its business members on Aug. 15 urging them to consider implementing a ban-the-
box policy. My hope is that others will make a similar determination.

Hundreds of thousands of people with criminal records try to rejoin society every year, and they
want to contribute to their communities and improve their lives. We can help them by breaking
down barriers that stand in their way. No one should be judged forever based on what they did on their worst day—and everyone deserves a second chance.

Mr. Holden is general counsel and senior vice president of Koch Industries

EDITOR’S NOTE: And the Koch Brothers, owners of Koch Industries and hated right wing ideologues, are actually doing something for the downtrodden, not just squawking about it like the Democrats.