Bill Would End Current Law’s Disqualification of People from Occupational and Small Business Licenses as Punishment for Unpaid Fines and Fees
Tzedek DC released a report on the need for reform of DC’s Clean Hands Law and, with a coalition of allied organizations, applauded the introduction of reform legislation by DC Councilmember Kenyan McDuffie.
The current Clean Hands Law automatically disqualifies anyone with over $100 in unpaid fines and fees of any kind from obtaining DC government occupational and small business licenses. It affects more than 125 occupations, representing over 48,000 workers, including barbers, cosmetologists, nurses, social workers, plumbers, HVAC cleaners, food vendors, and dozens of other occupations crucial to the District’s economy.
Nearly one in five DC workers must get an occupational license before they can legally do their jobs. The DC Council’s Office of Racial Equity (CORE) has already concluded that “[b]ecause of the Clean Hands policy, Black residents are disproportionately blocked from occupational licenses [or] starting a business …. This leaves Black residents disproportionately impacted by fines but with fewer opportunities to build wealth that may help them pay debts resulting from fines and fees.”
Tzedek DC’s report, “Locked Out: How DC Bans Workers with Unpaid Fines from More than 125 Jobs or Starting a Business, and What We Can Do About It,” shares the stories of directly impacted residents, illustrates the policy and legal problems of the current system through data-based explanations, and shows how DC’s counter-productive law makes it an outlier in the region and in the nation. The report concludes with a call to urgent action by DC’s policymakers. A support letter from anti-poverty, civil rights, faith-based, consumer protection, and justice advocacy groups accompanies the report.
Councilmember McDuffie’s bill, the Clean Hands Economic Expansion and Revitalization Amendment Act of 2023, would, among other things, end the Clean Hands Law’s lockout of occupational and small business licenses for those with unpaid fines and fees to DC.
“This is an issue of racial equity and good government,” said Councilmember McDuffie. “I’m concerned about the problems caused by the Clean Hands law for both DC workers and DC employers, and I am committed to ensuring our public policy helps reduce, not widen, the unacceptable DC racial gaps in wealth and employment. I appreciate the work done by all the residents and organizations to shed light on this issue. As the stories and extensive data in Tzedek DC’s Locked Out report show, we need reform.”
“Data shows that DC has the largest Black-white unemployment gap in the United States. The Clean Hands Law plays a significant role in perpetuating and widening racial and economic disparities in the District,” said Ariel Levinson-Waldman, Founding President and Director-Counsel of Tzedek DC. “The current law puts us at an economic disadvantage compared to neighboring states. We applaud Councilmember McDuffie for introducing this reform. Impacted DC residents and allies are coming together to support this much-needed change.”
Click here to read Tzedek DC’s Locked Out report.
Click here to read the coalition letter supporting the enactment of the Clean Hands Economic Expansion and Revitalization Amendment Act of 2023.
Coalition Members
1199SEIU United Healthcare Workers East
Beloved Community Incubator (BCI)
Building Bridges Across the River / Skyland Workforce Development Center
Capital Area Asset Builders (CAAB)
CARECEN
DC Affordable Law Firm
DC Bar Pro Bono Center
DC Fiscal Policy Institute (DCFPI)
DC Justice Lab
DC Volunteer Lawyers Project (DCVLP)
Fines and Fees Justice Center (FFJC)
Jewish Community Relations Council of Greater Washington (JCRC)
Legal Aid Justice Center
Legal Aid Society of the District of Columbia
Legal Counsel for the Elderly (LCE)
Network for Victim Recovery of DC (NVRDC)
Peter Edelman, Carmack Waterhouse Professor of Law and Public Policy, Georgetown University Law Center
Pro Bono Institute
Tzedek DC
United Planning Organization
Washington Interfaith Network (WIN)
Washington Lawyers Committee for Civil Rights and Urban Affairs
Washington Legal Clinic for the Homeless (WLCH)
About Tzedek DC
Tzedek DC’s name is drawn from the ancient Jewish teaching “Tzedek, tzedek tirdof,” or “Justice, justice you shall pursue.” Launched in 2017 as a nonprofit public interest center headquartered at the UDC David A. Clarke School of Law, Tzedek DC also has offices in Ward 8. Tzedek DC’s mission is to safeguard the legal rights and financial health of DC residents with lower incomes facing the often-devastating consequences of debt collection and credit-related obstacles. Tzedek DC seeks to serve and empower our DC community client base, comprised of 90% Black residents, 60% women, and 25% disabled DC community members. Our approach combines (i) free direct legal and financial counseling services, (ii) working in coalition to make systemic change, and (iii) providing multi-lingual community education. Since 2017, Tzedek DC has served over 3,000 DC client households in legal and financial counseling matters and catalyzed systemic reforms benefiting hundreds of thousands of DC residents.
Contact: Sam Pannell, Tzedek DC Policy Associate
sp@tzedekdc.org, (256) 715-9345