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So lets guess the outcome of this idiocy.

Blacks and Hispanics unfortunately are a demographic with higher incidents of failed criminal activity. ie spent time in jail.

So a company now faces government harassment if they do criminal background checks and are taking a risk by not doing them. So the answer will be that human nature abhors bad policy, so less qualified black and Hispanics will make to through the hiring process so a company reducues it’s risks.

Yup.

From a conservative point of view do we want these people integrated into society, being responsible, getting married and obeying the law?

We’re never going to build enough jails to lock up every one and its expensive.

We should reserve scarce prison space for the worst of the worst: murderers, rapists, armed robbers and people who have assaulted people.

Other offenders should be made to pay restitution to their victims and kept out of prison. A decent society isn’t measured by the number of people we imprison; its measured by the number of people we keep from getting into serious trouble in the first place.

You said: “So a company now faces government harassment if they do criminal background checks and are taking a risk by not doing them. So the answer will be that human nature abhors bad policy, so less qualified black and Hispanics will make to through the hiring process so a company reducues it’s risks.”

Actually, that won’t be the answer to bad policy. The article linked above states the following:
“The EEOC is confident that its guidance will boost minority hiring, but studies published in the University of Chicago Legal Forum and the Journal of Law and Economics have found that businesses are much less likely to hire minority applicants when background checks are banned. As the majority of black and Hispanic job applicants have clean legal records, the new EEOC mandate may harm the very groups it purports to help.”

Criminal background checks allow employers the opportunity to specifically remove a high-danger element from their workforce. Employers are most often liable for any criminal damage their employees are responsible for, and criminal activity in the workplace can be extremely costly in both monetary and non-financial terms.

The government on the other hand argues that due to the fact that the overwhelming majority of criminals are black and hispanic, criminal background checks have a disparate impact.

In effect, the businesses are saying “we don’t want criminals”, and the government is saying “but most criminals are minorities! You can’t discriminate against them because you’d be discriminating against minorities”. If the government prevents businesses from denying criminals employment opportunities, then businesses will be forced to use the next best measure of criminality available to them... the indirect and imprecise measure of ethnicity.

It’s really kind of laughable. The EEOC and the Civil Rights Commission can’t find any real white-on-minority racism in this nation, so they resort to measuring things that merely correlate with racial discrimination. The net result being to force businesses to stop using direct measures of criminality and instead just use racial discrimination to keep criminals from getting hired.