What is “Equitable Hiring” Wendi Bowen Eure, Program Coordinator NC Department of Commerce Division of Workforce Solutions

Truth in Numbers 24,824 were released in 2017 Over 134,000 under NC Dept. of Public Safety supervision (April 2018) Additional in Federal Prisons, Local Jails, OR not under any supervision About 95% will be released at some point 24,824 were released in 2017 1 in 3 Working age adults have a record of arrest and/or conviction HUGE impact on economic development Those who are employed are 3 times less likely to return to prison

Cost Vs. Savings Average Cost of Incarceration = $96.58/Day OR $35,252/Year Employed Individual Making Minimum Wage: $7.25 at 40 hours/week = $290.00/wk, $15,080/yr 10% Federal Tax Revenue = $1,508 5.499% State Tax Revenue = $829.25 Employed = +$2,337.25 Incarcerated = -$35,252

Cost Vs. Savings “Equitable Hiring” = 24,824 Individuals released in 2017 “Equitable Hiring” = 24,824 Individuals Employed = + $58 Million 24,824 Individuals Incarcerated = - $875 Million Less Crime Less Victims More State & Federal Tax Revenue Less Government Assistance

What do Incarcerated Individuals do all Day?

Prison Programs Vocational Training Includes: Culinary Arts Technology Food Service Construction Business Admin. Horticulture Masonry Basic/ Advanced wiring Welding Basic/Advanced computer Electronics Commercial Cleaning HVAC Upholstery Dog Training

Correction Enterprises (NC DPS) 2,470 Incarcerated individuals working in 32 separate revenue producing operations No money is appropriated by the General Assembly for the operation of Correction Enterprises $95.7 Million in sales in 2016 Top 2 industries were FOOD (31%) and sewing (17%) 93% of sales were to state agencies 97-100% customer satisfaction Participants are Lean Certified Receive OSHA Training Products are available to all state employees The Correction Enterprises Story Caledonia Correctional Institute Honey Bees

Work Release (NC DPS) The Work Release Program provides selected incarcerated individuals opportunity for employment in the community during imprisonment. Criteria for Participation: Factors such as the sentence received, the statute under which sentenced and the individual’s record of behavior. Must be in the final stage of imprisonment Carefully screened for participation by prison managers. Program Operation: Available at the majority of minimum security prisons. Participants leave the prison each day to work and return to the prison when their work is finished. Participants must earn at least minimum wage. The job plan and job site must be reviewed and approved by prison managers. Participants must work in a supervised setting and cannot work for family members or operate their own businesses. The work release employer must receive an orientation from Prison staff and agree to the rules of the program. The employer must have Worker's Compensation insurance. Prospective employers interested in work release should contact the minimum-security prison nearest their location.

What is Federal Bonding? FREE insurance for employers who hire “at risk” individuals which reimburses employers for any loss due to employee theft of money or property with no deductible. The bond provides $5,000 to $25,000 in coverage. Covers the first six (6) months of employment beginning with the first day of work (the start date) Insurance protects employers against employee Theft Forgery Larceny Stealing Embezzlement Who Quailifies? Businesses who hire any “At Risk” Individuals, including those with: Poor credit history History of arrest, conviction, or imprisonment History of substance abuse Lack of employment history Dishonorable discharge form the military Those seeking a promotion and the promotion requires a bond Any job, Any age (Legal working age) employee, Any employer Limitations/Requirements Does NOT cover self-employed individuals (no 1099 employees) Must be an employer – employee relationship Employers must deduct all required federal/state taxes and provide worker’s compensation coverage Over a 99% success rate (<1% of bonds result in a claim filed)

How to you Apply? The employer/business contacts their local Workforce Center, Regional Reentry Specialist, OR the Federal Bonding Coordinator. Staff will need the following information: The business name Business address Business contact person You may be asked for your Federal ID# or EIN if you do not already have an NCWorks Account Bondee’s first and last name Bondee’s Social Security number (SS#’s cannot be sent via Email or Fax) And the start date/effective date of bond (their first day of work) Staff completes the Federal Bond Certification Form and submits it to the Bonding Coordinator You then receive a welcome packet from Union Insurance Group within a couple weeks For more information and to listen to a Federal Bonding Podcast visit: www.bonds4jobs.com

Work Opportunity Tax Credit A Federal Tax Credit for employers who hire individuals in Certain Target Groups Reduces the federal tax liability of private-for-profit employers Target Groups and Amounts:

NC Business Savings with Ex-Felon Category Fiscal Year 2017-2018 Certified 2,168 EX-Felon Applications Max Credit $2,400 Total Savings = $5.2 Million The Ex-Felon category only represents about 3.5% of the total Certified Tax Credits To qualify for this category, the individual must have a felony conviction or release from prison within the past 12 months prior to hire Employees must work at least 400 hours to qualify for the maximum amount of $2,400 (based on 40% of first year’s wages) Employees who work between 120 and 399 hours can qualify for a partial tax credit up to $1,500 (based on 25% of first year’s wages)

For More Information or Questions: How Does it Work? Step 1: Complete IRS Form 8850 “Pre-Screening Notification and Certification Request” Step 2: Complete ETA Form 9061 “Individual Characteristics Form” Step 3: Register as a user www.ncworkswotc.com and electronically submit the request to NC Division of Workforce Solutions within 28 days of the new employee start date. Note: Hard copies of Form 8850 and ETA Form 9061 are retained by employers for their records. Step 4: Receive electronic determination of eligibility, denial with explanation, or request for additional information. Step 5: After receiving a certification, employers may file for the tax credit with the IRS. Tax credits can be claimed on once per employee, but there is no limit on the number of qualifies employees the company can hire For More Information or Questions: Freeman Denton | WOTC Program Coordinator | 919-814-0439 Freeman.denton@nccommerce.com https://www.doleta.gov/business/incentives/opptax/

For More Information or Questions: 100-Day No Fault Guarantee Selecting the right person for a job can be a challenge. If you need to terminate a new employee, your unemployment insurance taxes may not be affected. Applicable only if the employee is terminated… within a 100-day period from the date of hiring. due to a bona fide inability to do the work. Employers must request the non-charging by contacting the Division of Employment Security. As a result, the employer is not penalized for giving someone a chance at the job. Reduces the federal tax liability of private-for-profit employers For More Information or Questions: Contact the Division of Employment Security Employer Call Center at 919-707-1150 This information is also available: https://des.nc.gov/DES/Static?page=100DayGuarantee

For More Information or Questions: Contact your NCWorks Career Center Other Services On the Job Training Pathway for unemployed workers seeking employment and for employers seeking workers Training by an employer provided to a paid participant while engaged in productive work Training provides knowledge or skills essential to the full adequate performance of the job Reimburses companies for up to 50% of the employee’s wages during the training period To Qualify The Job Applicant must be eligible Workforce Innovation and Opportunity Act (WIOA) participants who are assessed and found to be in need of, and suitable for training services in order to obtain or retain employment leading to self-sufficiency. The Employer is assessed and factors such as working conditions, availability of health benefits, sustainable wage structure, turnover rates, adequate staff to carry out training, and whether the employer is in compliance with federal, state, and local laws, are considered. Employment should be on-going and not temporary, probationary, or intermittent. Recruit Talented Workers Post positions in the NCWorks Job Bank Space to conduct job interviews Participate in Job Fairs Up to date Labor Market facts and projections, such as wages For More Information or Questions: Contact your NCWorks Career Center