Beatty Banking Bill Signed into Law
Legislation to end restrictive hiring practices in the financial services industry now signed into law by President Biden
Washington, D.C. — Today, President Biden signed H.R. 7776, the James M. Inhofe National Defense Authorization Act (NDAA) for Fiscal Year 2023. The bill included legislation authored by U.S. Congresswoman and Congressional Black Caucus (CBC) Chair Joyce Beatty (OH-03),the Fair Hiring in Banking Act (H.R. 5911).
The bipartisan Fair Hiring in Banking Act would expand job opportunities in banking and financial institutions to certain justice-involved individuals. Under current law dating from the 1950s, people with criminal records are prohibited from working in a federally insured financial institution like a bank or credit union unless they can get a waiver from the government, even for misdemeanors like shoplifting or minor drug possession. Beatty’s legislation would shorten the lifetime ban to a more effective and inclusive seven-year ban. This exemption would not apply to individuals convicted of major financial offenses like bank fraud or money laundering.
“78 million Americans have a criminal record – that’s one out of every four of our neighbors, friends, and family members,” said Beatty. “Unfortunately, even long after paying their debt, these millions of justice-involved individuals are often shut out of employment opportunities. My soon-to-be law will provide access to quality jobs in the financial services industry, while giving banks and credit unions access to a previously unavailable workforce. This is not just an economic issue; it is a social justice issue, as Black American are incarcerated at a rate five times higher than their White counterparts and are disproportionately kept from working in the financial sector.”
Supported by the National Bankers Association, the Credit Union National Association (CUNA), the Bank Policy Institute, and the National Association of Federally-Insured Credit Unions (NAFCU), the bill included in the NDAA now signed into law by President Biden.
###