It's not really a "loophole", per se. It would be ludicrous to say that a bank should not be able to exclude someone from hiring if they have been convicted of a serious financial crime, or that a day care should not be able to exclude a convicted child molester.

Now, will other companies take advantage of this so that they defeat the spirit of the law? Perhaps. But the fact that they need to make an assessment means that might be subject to review at some point.