Comments due Jan. 8 on NCUA fair hiring proposed rule

Public comments on a proposed rule to codify the agency’s interpretive rule on credit unions’ hiring of individuals with a previous minor or older criminal offense are due to the National Credit Union Administration (NCUA) Jan. 8, according to a notice in Tuesday’s Federal Register.

The proposal, issued unanimously by the NCUA Board Oct. 19, would incorporate the agency’s “Second Chance” Interpretive Ruling and Policy Statement 19–1 (IRPS 19–1) and the Fair Hiring in Banking Act (FHBA) into its regulations.

The proposed rule, according to NCUA’s summary, would add new Section 752 to the agency’s rules and regulations. It would incorporate into the rules the agency’s “second chance” interpretive ruling and policy statement (IRPS 19-1) and reflect the requirements of Section 205(d) of the Federal Credit Union Act, along with 2022 amendments under the Fair Hiring in Banking Act.

The NCUA said its proposed rule also would extend greater relief than what is currently available to certain individuals with prior convictions seeking employment with an insured credit union, particularly individuals with older convictions, expunged convictions, or prior convictions for a misdemeanor, any drug-related possession offense, or certain designated “lesser offenses.”

Separately, the agency board is also seeking comments on a proposed simplification of share insurance rules (due Oct. 26), a “financial innovation” proposal (revising the agency’s loan participations rules, due Oct. 30), and the agency’s draft budget for 2024-2025 (due Nov. 21). These proposals and more can be found in Reg Lookup.

Reg Lookup: Fair Hiring in Banking