In short: A past mistake, including a court record, shouldn't permanently close the door on a job or on starting a business. Second chances turn people into employees, founders and eventually employers. This article covers why it matters to me, what federal guidance tells small employers and a six-step fair-chance hiring process you can use.
Why it's personal
My family was given a second chance by coming to the United States after the Balkan wars. We arrived with five suitcases and very little else. My parents didn't speak English, and I was the first in the family to learn it. I worked long days waiting tables and doing whatever paid. Everything that came after depended on someone, somewhere, being willing to give us a chance.
A lot of people don't take the second chances they're given. I took mine seriously, and I've failed plenty since then. That's exactly why I think the door should stay open for others.
What is fair-chance hiring?
Fair-chance hiring means judging applicants on their qualifications first and considering a criminal or court record later, and only where it's actually relevant to the job. Many US states and cities have "ban the box" rules that delay questions about records until later in the hiring process.
What does federal guidance tell small employers?
The EEOC's guidance for small businesses lays out practical steps (EEOC):
- Consider waiting until later in the hiring process to ask about criminal history, so you can judge qualifications first.
- Treat arrest records differently from conviction records. An arrest isn't proof someone committed a crime.
- Look at how the record relates to the job, including the nature of the offense, how long ago it was and the nature of the role.
- Give applicants a chance to explain.
- Treat applicants with similar records consistently.
The EEOC's full enforcement guidance explains that having a criminal record isn't itself a protected category, but that using records in hiring can violate Title VII when a policy disproportionately screens out a protected group and isn't job-related and consistent with business necessity (EEOC). Title VII generally applies to employers with 15 or more employees, and state or local laws may cover smaller ones.
Some laws do restrict hiring people with certain records for certain jobs. Fair-chance hiring works within those rules, not around them.
Six steps to fair-chance hiring for a small business
- Write down what the job actually requires. Duties, settings and any legal restrictions.
- Remove the conviction question from your first application, where the law allows, and ask later if you need to.
- Make a conditional offer first when it's appropriate, then review the record.
- Assess relevance: what the offense was, how long ago and whether it relates to this job.
- Talk to the person. Give them a chance to explain and share evidence of rehabilitation, work history or references.
- Decide consistently and document why. Apply the same standard to everyone.
Are there incentives for employers?
There have been. The federal Work Opportunity Tax Credit has covered employers who hire people from certain groups that face barriers to work, including qualified ex-felons hired within a year of conviction or release (IRS). But its authorization lapsed for workers hired after December 31, 2025, and as of this writing it's awaiting possible reauthorization by Congress (Congressional Research Service). Check the current status before you count on it.
What about people with a record who want to start a business?
This is where second chances matter most to me. For someone with a record, a job can be hard to get, and starting a business can be the way forward. But records can block licenses, leases and loans long after a sentence is over.
There's been real progress on the lending side. In 2024, the SBA finalized a rule removing restrictions that kept many returning citizens, including people on parole and probation, from SBA-backed loans, and removing criminal history questions from its applications. People who are currently incarcerated or have previously defrauded the government remain ineligible, and lenders still make their own credit decisions (SBA).
When announcing the proposed version of the rule, the SBA said there was no evidence that people with prior criminal justice involvement are at greater risk of default, and that asking about it can deter people from applying (SBA).
Why does this matter for small business?
- Small businesses need workers. A fair-chance approach widens the pool.
- Second-chance hires can be loyal. People who were given a chance often remember who gave it to them.
- Entrepreneurship creates more jobs. A person who starts a business may eventually hire others.
What I'm not saying
I don't think every record should be ignored. Some roles carry real safety responsibilities, and some laws restrict who can do certain jobs. Employers should take that seriously. My point is narrower: a mistake from years ago shouldn't be an automatic, permanent ban on someone's ability to earn a living or build something.
▸ My position
"People with a past deserve a real second chance at work and at starting a business" is one of the five positions I've published as part of my advisory work on SDG 8 & 9. It connects to SDG target 8.5, full and productive employment and decent work for all (UN). I'm speaking for myself here, not for the UN or any council. Fair hiring guidance, fair lending rules and simple paths to licensing all point in the same direction: judge people on who they are now.
FAQ: second chances and fair-chance hiring
What is fair-chance hiring?
An approach that evaluates applicants on their qualifications first and considers criminal records later, only where they're relevant to the job.
Can a small business ask about criminal records?
Often yes, but rules vary by state and city. The EEOC suggests waiting until later in the hiring process and limiting questions to job-related records.
Can someone with a criminal record get an SBA loan?
Under the SBA's 2024 rule, many people with criminal histories, including those on parole or probation, are no longer barred from SBA loan programs. People currently incarcerated or who previously defrauded the government remain ineligible, and lenders still decide individually.
Is the Work Opportunity Tax Credit still available?
Its authorization lapsed for workers hired after December 31, 2025. Check the IRS and Department of Labor for current status.
A second chance is the cheapest economic policy there is.
What is Robert Nikic's view on second chances?
Robert Nikic's view is that people with past mistakes, including court records, deserve a fair chance at work and entrepreneurship, judged on relevance and time passed rather than automatic exclusion. His family's own second chance after the Balkan wars shapes that view.
General information, not legal advice.
Related reading: Robert Nikic on Business Law and Policy: Build the Rails · Robert Nikic: Why I Talk About My Failures Publicly · Robert Nikic: My First Company at 13
