What does “reentry” have to do with it?

Second-chance hiring is most effective when employers use a clear, actionable definition of reentry. This article explains why the U.S. Department of Labor’s (DOL) Work Opportunity Tax Credit (WOTC) definition—focusing on individuals hired within one year of a felony conviction or prison release—is the best framework for hiring policies. Relying solely on the fact of a conviction can create unnecessary barriers, branding individuals as permanently unfit for employment. Instead, reentry should be seen as a temporary transition, with targeted interventions yielding the best results. The article outlines research supporting this approach and provides practical recommendations, including partnering with staffing agencies and nonprofits to ensure successful second-chance hiring.

Defining Reentry: Why It Matters

Reentry is the process of reintegrating formerly incarcerated individuals into society. Historically, reentry was considered to begin after release, but most experts now recognize that it should start at the moment of incarceration. This shift, brought about by the criminal justice reforms of the early 1990s, reflects the growing understanding that preparation—through education, vocational training, and mental health programs—while still in prison significantly improves post-release outcomes.

In fact, the difference between someone who is actively engaged in a structured reentry process that addresses all of the various factors that contribute to criminal activity versus someone who is merely released to society can be substantial. However, viewing reentry as a continuum that includes so many variables comes with certain challenges, including the fact that it can create confusion for decision-makers in the community. 

And why is that?

While expanding the definition of reentry is beneficial for policymakers and justice-related service providers, it has become too broad to be practical for employers and other community-based decision-makers, such as landlords, bankers, and regulators who typically have no expertise managing “criminogenic” needs—nor even what that term means. Employers are not expected to interact with their people as caseworkers. But when hiring someone who has served time in prison, increasingly there is an expectation that they do just that—exposing them to poor hiring decisions and possible legal repercussions. 

Wouldn’t it be helpful to have a clear and practical definition of ‘reentry’ that hiring managers can easily implement without needing a background in social sciences? 

In fact, there is. Not only has it been around for a long time, it originates in a field relevant to employers—i.e., labor. 

Contemplating Person in Orange Prison Uniform

A DOL 2-Factor Definition of Reentry

The U.S. Department of Labor established guidelines for hiring ex-felons under the Work Opportunity Tax Credit program as part of the program’s creation in 1996 under the Small Business Job Protection Act (Public Law 104-188). To qualify for WOTC under the ex-felon category, an individual must: 

The WOTC is designed to incentivize employers to hire individuals from certain targeted groups who have faced significant barriers to employment. Although not specifically a definition of reentry, the two conditions to qualify as an “ex-felon” clearly identifies the conditions that result in reentry. It also places an emphasis on its transitional nature. By focusing on a specific period, it identifies reentry as a temporary phase, during which targeted interventions can have significant impact. This framework is particularly useful for employers seeking to engage in second-chance hiring but unsure where to begin. 

Start with the WOTC’s requirements:

Convicted of a felony

Specifying that a conviction needs to be a felony as opposed to a misdemeanor to qualify for the WOTC highlights the fact that felonies are significantly more disabling than misdemeanors, in terms of legal restrictions, employment barriers, social stigma, and civil rights. Employer initiatives that intend to create second chances for individuals who have been affected by the criminal justice system but include candidates who have been only convicted of misdemeanors are missing the mark and potentially undermining their objectives. The same would be true of any workforce initiative—i.e., not everything that can be counted counts!

Hired within one year

Although the impact of a felony conviction on reintegration can last more than a year, employers need to be cautious when assuming that a candidate’s record has prevented them from obtaining gainful employment for much longer than that. Chances are very good that what is getting in the way is rooted in other factors unrelated to the fact that they were convicted of a felony or released from prison (at some point in their lives). And what could be getting in the way? Things like:

  • Mental illness
  • Cognitive disabilities
  • Personality disorders
  • Chronic substance abuse

These issues are more enduring and can require tailored, long-term interventions. Hiring someone under the assumption that employment alone will resolve such challenges is a mistake. Instead, these individuals benefit more from comprehensive support systems addressing their specific needs.

Research Supporting A DOL Definition

Studies demonstrate that the challenges of reentry—such as securing housing, employment, and community support—are most acute within the first 12 to 18 months after release. Research from the Urban Institute shows that targeted support during this period significantly reduces recidivism rates and increases stability for individuals. By focusing on this critical window, the DOL’s definition ensures that resources—including employment opportunities—are concentrated where they can yield the greatest return.

In addition to simplifying a second chances initiative at your company and improving its efficacy, by adopting DOL’s 2-factor criteria for WOTC you’re accomplishing several other important goals: 

First, you are not making up a definition for what qualifies as a second chances hire. You’re using one that has been in place for over 30 years and is directly related to employment. Second, it is extraordinarily easy to document performance for a second chances initiative because every hire is recorded through WOTC forms. And third, there is a monetary benefit to tracking performance through WOTC forms because every hire includes a tax credit for your company of up to $2,400.

Engineering man wearing uniform safety workers perform maintenance in factory

Some Recommendations for Second-Chance Hiring

To maximize the success of a second chances hiring program, employers should:

  1. Adopt the DOL’s WOTC 2-Factor Definition: Focusing on individuals within one year of release or conviction ensures attention is given to the critical reentry period.
  2. Partner with Staffing Providers: Working with existing staffing providers can help mitigate risks by ensuring candidates are pre-vetted and prepared for employment.
  3. Collaborate with Nonprofits for Case Management: Partnering with nonprofits that provide long-term case management helps individuals access additional community resources, improving their skills and overall value to the company.
  4. Invest in Ongoing Support: Providing mentorship, skills training, and workplace accommodations fosters a supportive environment that increases retention and productivity.

Conclusion

While training and counseling interventions in prison enhance reentry outcomes, community-based decision-makers should recognize reentry as a temporary, transitional phase that demands targeted attention in the community. By adopting the DOL’s WOTC definition and aligning hiring practices with this framework, employers can create second-chance programs that are humane, effective, and impactful. Concentrating efforts on the reentry period ensures that individuals are supported through needed opportunities during their most vulnerable time, setting them up for long-term success and reducing risks for employers.

PS:

The Pitfall of Using Conviction as the Sole Determinant for Second-Chance Hiring

One major downside of using a conviction as the sole determinant for second-chance hiring is that it creates a perpetual barrier for individuals, effectively branding them as permanently unfit for employment. People who have been convicted of felonies, whether they have served time in prison or not, gain nothing from ongoing discrimination. Not only does it sell them short in the workforce, it:

  • Disregards the capacity for rehabilitation and change.
  • Perpetuates social stigma, making it harder for individuals to reintegrate
  • Ignores the transitional nature of reentry challenges.
 

In contrast, focusing on a time-limited transition period—as the DOL definition does—emphasizes the opportunity for growth and responsibility. It allows individuals to address reentry-related barriers, such as gaps in employment or housing instability, without being permanently defined by their past.

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