Yesterday, the New York Attorney General (“NYAG”) announced a settlement with national retailer Aldo Group Inc. (“Aldo”) for violation of New York City’s ban the box law, which, among other things, prohibits employers from inquiring into a prospective employee’s criminal history on an initial employment application. The NYAG’s investigation revealed that (i) Aldo’s employment applications impermissibly inquired into the applicant’s criminal history and (ii) Aldo lacked consistent policies and procedures for evaluating the criminal records of applicants and employees, leading store-level managerial employees to believe they had wide latitude in how they could consider the criminal records of applicants and that they could bar applicants with a felony conviction from employment.

Under the settlement terms, Aldo will pay a $120,000 fine to New York State, modify their employment applications to bring them into compliance with New York’s ban the box law, create new policies and training to ensure that its stores individually assess applicants’ criminal histories at the appropriate point in the application process, and report the company’s remediation to the NYAG.

This is the first ban the box settlement reached by the NYAG in 2018, but the fifth such settlement overall. In 2017, the NYAG settled with Marshalls and Big Lots, as reported here.

This settlement should serve as another wake-up call to businesses operating in New York to bring their pre-hiring practices into compliance with New York’s ban the box law. The NYAG’s enforcement efforts are likely to continue and the costs of noncompliance are steep.

Our colleague  at Epstein Becker Green has a post on the Hospitality Labor and Employment Law blog that will be of interest to our readers in the retail industry: “Massachusetts Attorney General Enforces State Ban the Box Law for First Time, Fining Three Businesses and Issuing Warnings to 17 Others.”

Massachusetts is one of many states which have adopted legislation, commonly known as a “ban the box” law, prohibiting public and private employers from requesting criminal record information in a prospective employee’s “initial written employment application” and limiting the type and scope of questions an employer may ask a candidate following receipt of an “initial written employment application.” Massachusetts Attorney General Maura Healey announced that her office has settled with four businesses and issued warning letters to 17 others for violations of Massachusetts’s ban the box law, marking the first enforcement efforts by the Massachusetts Attorney General’s Office. …

Read the full post here.