Fair Chance Improvement Act

To amend title 10 and title 41, United States Code, to amend the compliance procedures for the prohibition on criminal history inquiries by Federal contractors prior to conditional offers, and for other purposes. 1. Short title This Act may be cited as the Fair Chance Improvement Act 2. Compliance Procedures for investigating the prohibition on criminal history inquiries by Federal contractors prior to conditional offer (a) Civilian agency contracts Section 4714(b) of title 41, United States Code, is amended— (1) by amending subsection (b) to read as follows: (b) Compliance (1) Procedures for submission of complaint The Secretary of Labor shall establish, and make available to the public, procedures under which an applicant for a position with a Federal contractor may submit to the Secretary a complaint, or any other information, relating to compliance by the contractor with subsection (a)(1)(B). (2) Investigation of compliance In addition to the authority to investigate compliance by a contractor with subsection (a)(1)(B) pursuant to a complaint submitted under paragraph (1) of this subsection, the Secretary of Labor may investigate compliance with subsection (a)(1)(B) in conducting a compliance evaluation under section 60–1.20, 60–300.60, or 60–741.60 of title 41, Code of Federal Regulations (or any successor regulation). ; and (2) in subsection (c)— (A) in paragraph (1)— (i) by striking head of an executive agency Secretary of Labor (ii) by inserting , based upon the results of a complaint investigation or compliance evaluation conducted by the Secretary of Labor under section 60–1.20, 60–300.60, or 60–741.60 of title 41, Code of Federal Regulations (or any successor regulation) determines (iii) by striking such head the Secretary of Labor (iv) in subparagraph (C), by striking warning notice (B) in paragraph (2)— (i) by striking head of an executive agency Secretary of Labor (ii) by inserting , based upon the results of a complaint investigation or compliance evaluation conducted by the Secretary of Labor under section 60–1.20, 60–300.60, or 60–741.60 of title 41, Code of Federal Regulations (or any successor regulation), determines (iii) by striking such head the Secretary of Labor (iv) by inserting as may be necessary Federal agencies (v) by striking subparagraph (C) and inserting the following: (C) taking an action to impose a sanction described under section 202(7) of Executive Order 11246 (related to equal employment opportunity) and section 60–1.27 of title 41, Code of Federal Regulations (or any successor regulation). . (b) Defense contracts Section 2339 of title 10, United States Code, is amended— (1) by amending subsection (b) to read as follows: (b) Compliance (1) Procedures for submission of complaint The Secretary of Labor shall establish, and make available to the public, procedures under which an applicant for a position with a Federal contractor may submit to the Secretary a complaint, or any other information, relating to compliance by the contractor with subsection (a)(1)(B). (2) Investigation of compliance In addition to the authority to investigate compliance by a contractor with subsection (a)(1)(B) pursuant to a complaint submitted under paragraph (1) of this subsection, the Secretary of Labor may investigate compliance with subsection (a)(1)(B) in conducting a compliance evaluation under section 60–1.20, 60–300.60, or 60–741.60 of title 41, Code of Federal Regulations (or any successor regulation). ; and (2) in subsection (c)— (A) in paragraph (1)— (i) by striking head of an executive agency Secretary of Labor (ii) by inserting , based upon the results of a complaint investigation or compliance evaluation conducted by the Secretary of Labor under section 60–1.20, 60–300.60, or 60–741.60 of title 41, Code of Federal Regulations (or any successor regulation) determines (iii) by striking such head the Secretary of Labor (iv) in subparagraph (C), by striking warning notice (B) in paragraph (2)— (i) by striking head of an executive agency Secretary of Labor (ii) by inserting , based upon the results of a complaint investigation or compliance evaluation conducted by the Secretary of Labor under section 60–1.20, 60–300.60, or 60–741.60 of title 41, Code of Federal Regulations (or any successor regulation), determines (iii) by striking such head the Secretary of Labor (iv) by inserting as may be necessary Federal agencies (v) by striking subparagraph (C) and inserting the following: (C) taking an action to impose a sanction described under section 202(7) of Executive Order 11246 (related to equal employment opportunity) and section 60–1.27 of title 41, Code of Federal Regulations (or any successor regulation). . (c) Effective date This Act, and the amendments made by this Act, shall apply with respect to contracts awarded on or after December 20, 2022.

Summary: Fair Chance Improvement Act This bill revises provisions regarding the prohibition on federal contractors, including defense contractors, inquiring about applicants' criminal histories prior to conditional offers of employment. The bill allows the Department of Labor to investigate compliance by a contractor by conducting a compliance evaluation. Currently, Labor investigates compliance pursuant to an applicant's complaint. The bill also expands the sanctions that Labor may impose on a contractor with more than one violation of the prohibition.