NY Removes Barrier to Hiring Ex-Cons

Insurance companies in New York State will soon be barred from denying full coverage for crime-related losses to companies that hire ex-convicts — even if the crimes in question were committed by employees with criminal histories — thanks to a new rule signed by Gov. Mario Cuomo during the last week of December.

The new regulation — the first of its kind in the nation, reports Reuters — is designed to make it easier for companies to hire ex-convicts. Approximately 2.3 million New Yorkers have criminal records, according to the state.

Many insurance companies regard ex-cons as high risk and will deny or limit coverage to companies for sustained losses related to loss or theft committed by an employee with a criminal record, under the assumption that the employer should have known it was taking a risk by hiring the person. This discourages companies from hiring ex-cons, the governor said.

“This first-in-the-nation action will further break down artificial barriers that prevent previously incarcerated New Yorkers from obtaining work and turning their lives around,” Cuomo said in a statement.

The new regulation, which takes effect on July 1 2017, lets businesses obtain the coverage so long as they adhere to a state law that applies to hiring people who have criminal convictions — including considering whether a prior criminal offense is related to the duties an employee will perform, reports Reuters.

“So long as every business owner follows the letter of the law, we should encourage more companies to hire prospective employees rather than punish someone for a mistake in the past,” said Maria Vullo, superintendent of the state’s Dept. of Financial Services, in a statement.