Four Red Flags To Look For In A Credit Report

Last week one of our clients asked me if there are any “red flags” to look for on credit reports when used in the employee screening process.  I thought our readers could benefit from this so here they are…

Four Red Flags To Look For In A Credit Report:

1. What are the applicant’s total monthly payments?  How does this compare to the projected salary and benefits?  If the total monthly payments are significantly larger than their income it may be a red flag.
2. How many negative items are listed, such as late payments, collection actions, writeoffs or an account closed by the credit grantor?
3. Are there any negative public records and are they related to employment?  For example a tax lien may indicate someone has not paid attention to their financial affairs or is under financial stress.  If there is a bankruptcy in the credit report, then the employer should NOT utilize the bankruptcy without talking to an attorney.  Federal law expressly prohibits a private employer from discrimination solely on the basis of a person exercising their rights under the bankruptcy laws. Refer to 11 USC 525.
4. Are there alerts from the credit agencies?  Some bureaus issue fraud alerts if there is a suspicion of fraud or abuse.

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Do You Have A Sex Offender In Your House?

When was the last time you had a service person in your house? Could this person have been a sex offender without you knowing it?

The Consumer Awareness of Unsafe Service Employment (C.A.U.S.E.) Certification campaign was launched today on the seven year anniversary of the death of Sue Weaver, who was raped and beaten to death in her Orlando home by a worker sent to clean her air ducts. Although a twice-convicted sex offender on parole, the company did not do a criminal background check before hiring him.

Sue’s sister Lucia Bone founded The Sue Weaver C.A.U.S.E. in her memory. “Tragically, Sue’s murder is not an isolated case. Many consumers are assaulted and murdered each year by people whose jobs allow them access to their victims.”

“C.A.U.S.E. leads a national nonprofit campaign to educate employers and consumers to the necessity of criminal background checks and to promote C.A.U.S.E. Certification,” she said. “The C.A.U.S.E. Team has spent two years developing the certification program and has already received applications from several service providers employing more than 650 in-home workers.”

“We have to educate the public about hiring practices. Bonded and insured does not mean a criminal background check has been performed on the workers. C.A.U.S.E. Certification is designed to offer safety conscious consumers a means of identifying service companies that take their safety seriously. It also offers service providers a means to hire and promote safer employees, contractors, and subcontractors. As a result, it will better protect both consumers and businesses,” Bone added. “C.A.U.S.E. Certification is a program that very well may have saved Sue’s life!”

To find out more about C.A.U.S.E. go here.

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Deciding Whether To Drug Screen Employees

As a hiring manager, you may initially feel uncomfortable with the thought of requiring drug tests from job applicants. Some human resources personnel feel that doing so encroaches upon applicants’ privacy. In truth, drug screening prospective hires can protect your company and your employees. Here are a few reasons why you should drug screen job candidates…

Drug Screening Protects Your Business

If you hire an employee who has a history of drug abuse, you could be held partially or fully liable for his actions while on the job. By drug screening applicants, you can eliminate those who have had a drug problem in the past. If something drug-related were to happen in the workplace and an employee is injured, prior drug screening would help insulate your company from a negligent hiring claim.

It Maintains Employees’ Safety

Some jobs require employees to operate machinery or potentially-harmful devices. If an employee who is operating this machinery under the influence of drugs makes a mistake, other workers can be injured. Not only will a drug screen prevent drug abuse in the workplace from endangering your staff in the first place, but it’s often a legal requirement for employers.

Drug Abuse Can Have A Massive Cost

If your workplace or your staff is exposed to an employee with a drug problem, the costs can be enormous. It can lead to employees becoming hurt, expenses related to negligent hiring lawsuits and damage to computers, machinery and other company assets. In some cases, the actions of employees who are under the influence of drugs have resulted in businesses having to close.

Drug screening job candidates plays a key role in finding high-quality employees for your company. Doing so protects your current staff from injury and insulates the workplace from damage and disruption. Finally, it helps shield your company from negligent hiring lawsuits. If you’ve been reluctant to conduct drug screening on new hires, consider the above reasons. The sooner you include it in your employee screening program, the better.

Related Posts:

Free Drug-Free Workplace Toolkit

4 Tips on How to Avoid Negligent Hiring Lawsuits

5 Smart Hiring Tips To Implement Today

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4 Tips For Preventing Workplace Violence

As stress and frustration in the workplace reach an all-time high, employers have begun to cast a wary glance at their hiring practices. Violence in the workplace is not new. Most of us can remember the incidents that led to the term “going postal.” Today, many hiring managers are aware that companies are often held liable for the actions of their employees. Below, I’m going to give you 4 quick tips to reduce that liability and prevent workplace violence.

Tip #1: Do A Background Check

An extensive background check on a job applicant should reveal any workplace violence in her past. In many cases, companies that have witnessed one (or more) of their employees becoming violent failed to conduct a proper background check. Don’t make the same mistake.

Tip #2: Call Past Employers

Often, violent incidents in the workplace aren’t formally reported. Sometimes, filing a report simply falls through the cracks. Other times, an employer may feel that reporting the incident would be troublesome. However, a quick phone call to past employers can help uncover such episodes.

Tip #3: Create A Strict Policy

You should communicate to workers that violence or threats of violence will lead to termination. Often, this type of zero-tolerance procedure is enough to dissuade employees from losing control.

Tip #4: Watch For Red Flags During Interviews

Even if a potential employee does not have a history of workplace violence, your company could witness the first incident. However, interviewers can be trained to note certain mannerisms that manifest when confrontational questions are asked.

Protecting Your Staff And Your Company

In the end, preventing workplace violence means protecting your employees from injury and protecting your company from disruption and lawsuits. While it’s impossible to guarantee that an employee will never act violently in the workplace, you can use the 4 tips above to dramatically lower the likelihood of it happening.

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Does Your Company Do Employment Background Checks On Outside Vendors?

Since discovering that a pedophile was involved with an HIV-testing program for University of New Hampshire students, university officials have written a new policy requiring all outside vendors to pass criminal background checks.

Read the story…

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