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Fair Chance Hiring: Austin workers should know their rights

(BUSINESS NEWS) Cities and states nationwide are reconsidering at what point a criminal background check should be performed on potential employees.

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Ordinance opens doors

This year, the Austin City Council approved the Fair Chance Hiring Ordinance, affording ex-criminals a better opportunity to secure jobs. More than an ordinance, I believe it is a move in the right direction to eliminate social injustice among those who have already paid their debt to society.

District 4 City Council Member Greg Casar, who proposed the policy last year said, “It was a really long journey, but I think it really shows this new council is dedicated to thinking of local government in a more bold and progressive way than we might be used to,” adding, “This is, at heart, an anti-discrimination, civil rights piece of legislation, but I believe it also to have great benefits [for public safety and economic development].”

So what is the Fair Chance Hiring Ordinance?

As you already know, background checks are typically performed in the very beginning of the hiring process, as a way to weed out applicants with a criminal history. The Fair Chance Hiring Ordinance now delays an employer from running a background check on a potential candidate until just before the candidate is about to be offered the job.

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The new ordinance, also known as “banning the box” applies to business in Austin TX, with 15 or more employees. It does not, however, apply to positions for which prior law disqualifies candidates with a criminal history, or where a federal, state, or local law, or compliance with legally mandated insurance or bond requirement disqualifies an individual based on criminal history. Nor does it do away with criminal background checks.

Other cities, in an effort to eliminate social injustice in their respective areas, have also started to consider some form of “fair chance” hiring. In Ohio, Georgia, and Wisconsin, it is state policy and applies to public employers only.

In other states like Florida and Louisiana, there are certain cities and counties that enforce “fair chance” hiring, but not the entire state, and applies only to public employers. For a complete map of states, and areas that practice some form of “ban the box” are listed here:

fair-chance-hiring-nationwide
(Image by Community Impact)

Advantages for employees

For employees, there are a number of advantages presented by the Fair Chance Hiring Ordinance. If you have any sort of criminal background for example, like an embarrassing drunk college evening that resulted in trespassing, you won’t be automatically eliminated from the job pool.

Those with criminal backgrounds are also less likely to be limited to low-rank, low-paying positions, which is what some companies do that accept ex-criminals, but not promote them.

If you don’t have a criminal background, this policy still impacts you, as it is projected to create a more diverse, and resourceful workplace for you to feed off of and contribute to.

Disadvantages for employees

The biggest foreseeable disadvantage for employees is the increase in job competition with the new access to talent. Employees may also theoretically experience companies eliminating positions due to their perceived effect of the ordinance on their business goals.

Additionally, some businesses assert that the new act will increase the cost of the hiring process.

Know your rights

Although the Fair Chance Hiring Ordinance has a lot of benefits for employees, especially those with criminal backgrounds, you must also know that that nothing in the ordinance limits an employer’s authority to withdraw a conditional offer of employment for any lawful reason, including the determination that an individual is unsuitable for the job based on an individualized assessment of the individual’s criminal history.

It’s also important to note that recourse for workplace discrimination is handled completely differently than issues handled by Federal Agencies such as the Equal Employment Opportunity Commission. If an employee intends to file a complaint, they must do so with the city, since it is a city-level ordinance, which may result in the company being fined, but employees will not receive compensation.

Austin businesses have until April 2017 to adopt the ordinance, after which employers found in violation will receive a warning for a first-time offense and a fine of up to $500 for subsequent offenses. Businesses will receive written notification of the new law, but the city’s manager will also implement a public education campaign to inform employers and residents of the requirements.

#FairChanceHiring

Lauren Flanigan is a Staff Writer at The American Genius, hailing from the windy hills of Cincinnati, with a degree in Marketing from the University of Cincinnati. She has escaped the hills, and currently resides in Atlanta, where you can almost always find her camping at a Starbucks strategizing on how to take over the world.

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Business News

$100m reimagined convenience store startup to open 25 stores in 2022

(BUSINESS) Foxtrot is looking to redefine the convenience store as we know it. This startup is looking to make it a whole new experience.

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Laptop with Foxtrot convenience store locations in Chicago.

Move over 7-11, there’s a new player in town! There’s always room for competition, even in the world of convenience stores. Yes, you read that right, Quick Trip has some serious competition from a newcomer, Foxtrot.

Foxtrot is a curated, modern convenience store offering a brisk 30-minute delivery and 5-minute pick-up. It was created by Mike LaVitola and Taylor Bloom in 2014. These stores will undoubtedly be popular in walkable areas, but also with their online ordering convenience. This modern version of a convenience store offers the combination of an upscale corner store with a digital-first e-commerce platform. Sounds pretty glorious, right?

However, the original convenience store is safe as long as people are traveling and need to stop for gas or a restroom break.  If you’re from Texas, then you know and love, Buc-ee’s, the Texas-born chain. Buc-ee’s have been creating their own in-store products garnering a cult following among their customers. Still, Buc-ee’s doesn’t have an online ordering or delivery option unless it’s offered through a third party.

Foxtrot has raised $160 million in Series C funding and they are expecting to open 25 locations in many cities in 2022. There are a few different levels of funding. If a company makes it to Series C funding, they are already successful and looking to expand or develop new products per Investopedia.

According to Retail Dive, “About half of the new stores will be in Chicago, Dallas and Washington, where all of the 16 stores Foxtrot currently operates are located, LaVitola said. The tech-focused retailer is also planning to begin operations in Boston and Austin, and intends to open four or five new stores in each of those cities during the next year and a half, he said.”

Foxtrot is testing out technology equipment that would allow customers to leave the store without stopping to checkout at the counter. They plan isn’t to go entirely self-service, but as the creator LaVitola stated, “the more hours we can allocate towards sampling and storytelling and interacting with customers and less [on] tasks that don’t add on to value, like checkout, that’s great.”

Foxtrot is redefining convenience by including carefully curated products. They aim to offer local popular products as well core pantry items. They aim to make the commonly unpleasant experience of convenience stores enjoyable. Let’s hope they succeed.

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What small business owners can learn from Starbucks’ new D&I strategy

(BUSINESS) Diversity and inclusion have been at the forefront of Starbucks’ mission, but now they’re shifting strategy. What can we learn from it?

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Hands of all different skin colors on green background representing Starbucks' D&I.

Starbucks was one of many companies that promised to focus on diversity and inclusion efforts after the death of George Floyd by Minneapolis police in 2020. What sets Starbucks apart from other companies were its specific goals.

How It Started

They began with hiring targets and have now added goals in corporate and manufacturing roles. Starbucks’ plans and goals revolve around transparency for accountability. They released the annual numbers for 2021 as a way to help hold themselves accountable. The data they’ve released so far show that they’ve met nearly a third of their 2025 goals according to Retail Brew. Because of this information, we can see why they are choosing to move in the direction of manufacturing and corporate jobs. In 2021, POC’s fell to 12.5% of director-level employees from 14.3% in 2020 in manufacturing.

How It’s Going

Per Starbucks’ website stories and news, “[I]t will increase its annual spend with diverse suppliers to $1.5 billion by 2030.  As part of this commitment, Starbucks will partner with other organizations to develop and grow supplier diversity excellence globally.” To put that into perspective, they spent nearly $800 million with diverse suppliers in 2021. With these moves, by 2030, it will increase by almost double.

As part of their accountability and progress, they plan to partner up with Arizona State University to give out free toolkits to entrepreneurs on fundamentals for running successful diverse-owned businesses. Another goal they’ve listed is to boost paid media representation by allocating 15 percent of the advertising budget to minority-owned and targeted media companies to reach diverse audiences.

At the heart of all this information on their goals and future plans, data transparency and accountability are what’s forcing them to look at the numbers to make specific goals. They are doing more than just throwing money at the problem, they are analyzing how they can do better and where the money will make a difference. Something that, as entrepreneurs, we should all do.

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Business News

Peloton is back-pedaling: Reports of price increases, layoffs, and cost cuts

(BUSINESS) After a recording of layoffs leaks, ‘supply chain’ issues cause shipping increases, and they consult for cost-cutting, Peloton is doomed.

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Man riding Peloton bike with instructor pointing encouragingly during workout.

Is Peloton in Trouble?

According to many reports, Peloton had success early in the pandemic when gyms shut down. Offering consumers a way to connect with a community for fitness along with varying financing options allowed the company to see growth when many other industries were being shuttered.

After two years, CNBC reports that the company is “being impacted by …supply chain challenges” and rising inflation costs. According to the report, customers will be paying an additional $250 for its bike and $350 for its tread for delivery and setup.

As demand has decreased, Peloton is also considering layoffs in their sales and marketing departments, overheard in a leaked audio call. The recording details executives discussing “Project Fuel” where they plan to cut 41% of the sales and marketing teams, as well as letting go of eCommerce employees and frontline workers at 15 retail stores.

Nasdaq reported that the stock fell 75% last year, after a year where it soared over 400%.

Peloton reviewing its overall structure

According to another report from CNBC, Peloton is working with McKinsey & Company, a management consulting firm, to lower costs as revenue has dropped and the growth of new subscriptions has slowed since the pandemic. Last November, according to NPR, Peloton had “its worst day as a publicly-traded company.” It also anticipates greater losses in 2022 than originally predicted. It makes sense that the company would reexamine their strategy as the economy changes. They aren’t the only one that is raising prices amid supply chain issues.

It will be interesting to watch how Peloton fares

Peloton has a large community that pays a monthly fee for connected fitness. While growth has slowed, the company still has a strong share of consumers. Although it is facing more competition in the home fitness market and more gyms are reopening, as Peloton adjusts to the new normal, it should remain a viable company.

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