CREDIT CHECK - First Advantage
Transcription
CREDIT CHECK - First Advantage
B AC KGRO U N D C H E C KS PROACTIVE POINTS TO PREPARE CONSIDER BANNING ACTIVE BAN THE BOX LAWS These jurisdictions have laws that restrict private-sector employers from inquiring about criminal convictions on the employment application. Employers should consult with legal counsel to fully understand these laws. THE BOX The Equal Employment Opportunity Commission (EEOC) issued guidance in 2012 suggesting that the practice of asking about prior criminal convictions on an employment application has a disparate impact on minorities such as Hispanic and African American individuals, and creates a barrier to employment for these individuals. Consider removing the question about criminal convictions from the employment application, and pushing it back further into the hiring process so that it impacts fewer applicants. STATES California, Colorado, Connecticut, Delaware, Hawaii, Maryland, Massachusetts, Minnesota, Nebraska, New Jersey, New Mexico, Rhode Island, Washington, D.C. Don’t use “bright line” rules that automatically exclude certain demographics. For example, this is a no-no: “We do not hire felons for any positions.” Consider the relevance of criminal records when making a hiring decision based on: 1) the nature and gravity of the offense; 2) the nature COUNTIES Montgomery County, MD and Prince George’s County, MD Understand how your jurisdiction defines “criminal convictions” since it often varies by of the job; and 3) the time elapsed since the conviction or completion of sentence. jurisdiction and state. CITIES Review your background screening program Baltimore, MD Buffalo, NY Chicago, IL Columbia, MO Newark, NJ Philadelphia, PA Rochester, NY San Francisco, CA Seattle, WA Centralize your background screening process under one standardized program to limit subjectivity and promote a more consistent and and consider updating your screening packages and scoring matrices to align with current federal and state guidelines and restrictions. compliant hiring process. NOTE: This information is current as of March 2015 DON’T RUN A STATE LAWS PROHIBITING CREDIT CHECKS In 2013, 47 bills were pending in 26 states limiting the use of credit histories. Currently, the following 10 states prohibit the use of credit background histories: STATES California Colorado Connecticut Hawaii Illinois Maryland Nevada Oregon Vermont Washington CREDIT CHECK IF THE POSITION DOESN’T REQUIRE IT In lieu of active federal laws or regulatory guidance on the use of credit checks for employment purposes, a good rule of thumb and best practice is to avoid using credit checks for employment purposes unless you can demonstrate job-relatedness. Examples of relevant positions where credit checks might be appropriate could include law enforcement, managerial positions, money-handling positions and fiduciary positions. NOTE: This information is current as of March 2015 SEPARATE THE DISCLOSURE AND THE AUTHORIZATION DID YOU KNOW that the disclosure and authorization of the background check must be separate from the application? 4 KEYS FOR BASIC FCRA COMPLIANCE 1 Have a permissible purpose for performing a background check. 2 FOR THE BACKGROUND CHECK FROM YOUR APPLICATION To be clear, it must be a separate, stand-alone form or web page. The written authorization can be included on the disclosure form, but nothing else—meaning, no additional, extraneous language. However, this form can be included within larger employment packet. Be sure to consult with legal counsel regarding detailed state law requirements. HAVE A PLAN IN PLACE FOR HANDLING CRIMINAL “HIT” INFORMATION Not only should you follow the new EEOC process and conduct due diligence in providing an opportunity for indivduals to explain their criminal convictions, you need to follow the basic FCRA adverse action requirements. EEOC Guidance: Conduct an individualized assessment The EEOC sets forth a number of individual pieces of evidence that an employer should review when making an individualized determination including: Provide disclosure and obtain written consent. 3 Provide required notice and documents before and after adverse action, and provide reasonable waiting period in between. 4 The facts or circumstances surrounding the offense or conduct; The number of offenses for which the individual was convicted; Age at the time of conviction, or release from prison; Evidence that the individual performed the same type of work, post conviction with the same or a different employer, with no known incidents of criminal conduct; The length and consistency of employment history before and after the offense or conduct; Rehabilitation efforts, e.g., education/training; Employment or character references and any other information regarding fitness for the particular position; and Whether the individual is bonded under a federal, state, or local bonding program. Communicate certification to the consumer reporting agency. As the trusted partner of over 45,000 organizations worldwide, we at First Advantage provide easy-to-understand background screening results so you can confidently make decisions about prospective employees, vendors and renters. Not only does this safeguard your brand, but you also arrive at dramatically better background insights – insights you can rely on. It’s time to partner with First Advantage. Now in 27 locations, 13 countries and conducting over 54 million screens on 16.8 million applicants annually.Trusted Knowledge. Exceptional People. As the regulatory environment continues to change, employers need to be vigilant in ensuring they are following the applicable changes that may affect their business and be sure to gain legal counsel when needed. Employers should also look to their employment background check vendor to help inform them as legislative and regulatory changes are being debated and implemented. 866.400.3238 solutions@fadv.com fadv.com © First Advantage 2015
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