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Barred from Working: A Nationwide Study of Occupational Licensing Barriers for Ex-Offenders

By Nick Sibilla

Earning an honest living is one of the best ways to prevent re-offending. But strict occupational licensing requirements make it harder for ex-offenders to find work, thwarting their chances of successful reentry. Along with other “collateral consequences,” like losing the right to vote or the ability to receive government assistance, ex-offenders can be denied a license to work simply because of their criminal record. • This report provides the most up-to-date account of occupational licensing barriers for ex-offenders and will be regularly updated whenever a state

changes its laws. Using 10 distinct criteria, this report grades all 50 states and the District of Columbia on their legal protections for licensing applicants with criminal records. (See Methodology.) • The average state grade is a C-. Nationwide, 6 states—Iowa, Indiana, Minnesota, Mississippi, New Hampshire, North Carolina—earned a B or better. Reflecting the surge of interest in this issue, five of those six states have reformed their licensing laws since 2015. • Indiana ranked as the best state in the nation for ex-offenders seeking a license to work, earning this report’s only A grade. In contrast, five states—Alabama, Alaska, Nevada, South Dakota, and Vermont—were tied for last, receiving a zero on a 100-point scale for their lack of protections for felons seeking licenses. This report finds that licensing restrictions vary dramatically, with multiple states lacking even the most basic protections for ex-offenders seeking a license to work: • Licensing boards in seven states can generally disqualify applicants based on any felony, even if it is completely unrelated to the license sought. • In 17 states, boards are free to deny licenses without ever considering whether an applicant has been rehabilitated. • Applicants in 33 states can be denied licenses based on an arrest that did not lead to a criminal conviction. In other words, boards can refuse to issue a license even though the applicant is functionally innocent. • In nine states, applicants have no guaranteed right to appeal a board’s decision, and boards are not required to issue their decisions in writing.

Arlington, VA: Institute for Justice, 2020. 117p.