This narrative literature review provides a critical examination of the intersection of Fair Chance Hiring (FCH) policies and employer incentive mechanisms in the United States, with a specific focus on their effectiveness and scalability. Drawing on empirical studies, policy evaluations, and comparative analyses from 2018-2025, this review synthesizes evidence on incentive effectiveness, scalability challenges, and equity implications. FCH initiatives aim to mitigate employment discrimination against justice-involved individuals through procedural reforms, including Ban-the-Box laws and individualized assessments. However, employer engagement remains inconsistent due to perceived risks, administrative burdens, and limited awareness. This review categorizes incentives into financial (e.g., tax credits, bonding, wage subsidies) and non-financial (e.g., technical assistance, public recognition, partnerships) mechanisms, analyzing their operational dynamics and associated trade-offs. The empirical evidence suggests that while well-designed incentives can increase employer willingness to hire justice-involved individuals, their long-term impact on employment retention and career advancement is less certain and exhibits variability across sectors and firm sizes. Scalability challenges are exacerbated by geographic policy fragmentation, organizational stigma, and administrative friction. Case studies highlight promising models, including digital staffing platforms and municipal programs characterized by strong enforcement and intermediary support. Equity considerations are paramount, as race, gender, and socioeconomic status significantly influence outcomes. Incentive programs risk perpetuating labor market stratification unless distributional impacts are carefully monitored and addressed. This review advocates for the development of hybrid models that integrate financial and non-financial supports, tailored outreach, and community-centered design. Future research should prioritize longitudinal studies, sectoral analyses, and demographic disaggregation to inform the development of inclusive policies. Ultimately, aligning economic incentives with equity goals is essential to advancing durable labor market inclusion for justice-involved populations and promoting more equitable outcomes.