How To Use Credit Reports For Employment Background Checks
April 23, 2011
Maryland joins Hawaii, Washington, Oregon and Illinois as states that recently passed laws regulating the use of credit history-related information by employers for employment purposes. The Maryland law restricts the use of credit reports and credit history information unless specified conditions are met.
Employment Practices Solutions, Inc. (EPS), a human resources consulting organization, offers the following tips for employers in an article titled:
To Check or Not to Check: The Pros and Cons of Using Credit Reports in the Hiring Process
If an employer currently uses, or is contemplating the use of, credit histories to evaluate applicants, they should consider the following:
- Is there a clear policy or practice regarding what positions will include a consideration of credit histories?
- Are they used consistently for all applicants to those positions?
- Is there a sound business reason to use the credit information for each of the positions that they are reviewing it for? That is, is it job-related? (i.e., will the position require the handling of money or assets, making fiduciary decisions, access to trade secrets or confidential information?)
- Are there any applicable laws in the states in which they have employees? If so, is the employer considered a “covered employer” and are their current policies and practices consistent with such laws?
- Are they getting the credit information from a reliable source?
- Does the credit information have a record of reliability?
- Have their HR professionals and/or hiring managers been trained in how to use and/or interpret credit reports?
- Are applicants being given the opportunity to review and respond to the information contained in the credit reports or are all applicants with a weak credit record screened out?
- Is the credit history used as a deciding factor between applicants with equal qualifications?
- At what point in the selection process is it being used?
Related Posts:
- How Credit Checks Affect The Decision To Hire - A poll by SHRM provides an up-to-date look at the impact of credit checks on the decision to hire. It looks at factors that have the most impact on hiring decisions, the reasons that organizations conduct credit checks, the types of job candidates most likely to be subject to credit checks and more.
- Don’t Ban Pre-Employment Credit Checks - Evil HR Lady (Suzanne Lucas) offers some common-sense advice for employers on how to properly use credit reports.
Photo credit: shawnzrossi
Lying On Your Resume Is Not Good For Your Career
April 19, 2011
Another highly visible executive lied on his resume about his educational credentials.
Unfortunately this is a very common occurrence. Studies show that over 50% of applicants lie about their job and educational history. Resume lies include falsifying academic credentials, padding dates to mask employment gaps, exaggerating job titles, embellishing job responsibilities and achievements, claiming sole responsibility for team efforts and even making up fictitious employers.
A thorough background check will usually detect these lies and save your company precious time, money and embarrassment.
City puts brakes on hiring Smithsonian fleet manager after he flunks background check
(Source: nydailynews.com) New York’s plan to put one person in charge of its 26,000 vehicles sputtered to a halt when he flunked a city background check, sources told the Daily News. Bill Griffiths, the fleet manager at the Smithsonian Institution in Washington, had been picked as New York’s first Citywide Chief Fleet Management Officer.
When the Department of Investigation checked his résumé, however, it found he claimed an educational credential he hadn’t really earned, three sources said. The sources would not say what the credential was, but the offer was rescinded for the post - which would have paid up to $185,000 a year.
Read more.
Photo Credit: The CV Inn
New Hampshire to Reorganize Court System
April 7, 2011
News reports this week confirmed rumors that New Hampshire plans to reorganize their court system, eliminating approximately 60 court clerks. The money saving effort, will see many clerks dismissed or demoted. In their place, New Hampshire plans to adopt a “circuit court system” with the remaining clerks managing more courts. If passed by the legislature, the reorganization will go into effect on July 1, 2011. New Hampshire’s court system has not reported whether delays are expected as a result of the reorganization.
Read more here.
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People With Criminal Records “Need Not Apply”
March 23, 2011
Hopefully your company doesn’t have this kind of policy…
(Source: yubanet.com) According to the National Employment Law Project (NELP) more than one in four U.S. adults — roughly 65 million people –have an arrest or conviction that shows up in a routine criminal background check, and a new report from NELP finds that these Americans are facing unprecedented barriers to employment. With the rapidly expanding use of background checks, employers are routinely, and often illegally, excluding all job applicants who have criminal records from consideration, no matter how minor or dated their offenses.
The new report highlights the widespread and illegal use of blanket no-hire policies by providing numerous examples of online job ads posted on Craigslist, including some by major corporations, that effectively bar significant portions of the U.S. population from work opportunities. Because of their blunt impact and extreme overreach, these blanket no-hire policies have become the subject of increasing litigation, attracting heightened scrutiny from the courts and concerned policymakers. At the same time, 92 percent of employers conduct criminal background checks, according to a 2010 Society for Human Resources Management survey.
The NELP report, entitled “65 Million ‘Need Not Apply’: The Case for Reforming Criminal Background Checks for Employment,” surveys online job ads posted on Craigslist in five major cities—San Francisco, Los Angeles, Chicago, New York, and Atlanta. The survey found numerous examples in which extreme requirements precluded consideration of anyone with a criminal record, in clear violation of federal civil rights law. Major companies, such as Domino’s Pizza, the Omni Hotel, and Adecco USA, were just some of the employers that listed entry-level jobs on Craigslist—ranging from warehouse workers to delivery drivers to sales clerks—that unambiguously shut the door on applicants with criminal records.
Read the rest of the article here.
Download the NELP report: “65 Million ‘Need Not Apply’: The Case for Reforming Criminal Background Checks for Employment” (PDF)
How Do You Become a Model Employer and Comply with the Law?
(Source: NELP’s guide to best practices for employers who conduct criminal background checks)
Step 1
Identify positions that require a background check under state or federal law, or that require a background check due to the sensitivity of the job. You are not required by law to perform a background check for most positions.
Step 2
Do not request criminal history information on the initial job application. Inquire into an individual’s criminal history only after the applicant has been selected as a final candidate.
Many cities, states, and even some federal agencies delay background checks because “it is generally more practical and cost-effective.” (U.S. Office of Personnel Management Regulations.)
Step 3
If you conduct a background check, be sure to comply with the legal requirements of the Fair Credit Reporting Act.
First, give notice to the applicant and get the worker’s consent. If the background report includes criminal history information, provide a copy to the applicant and allow the applicant to contest or explain the information included before making an employment decision.
See the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) and the Federal Trade Commission (www.ftc.gov) for your obligations. Your state may have additional requirements.
Step 4
Consider only job-related and recent convictions when making an employment decision. Consideration of arrest information likely violates federal civil rights law and may violate state law.
See the EEOC Policy Guidance on the Consideration of Arrest Records (www.eeoc.gov/policy/docs/arrest_records.html).
Step 5
Be sure to comply with the legal requirements of Title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e).
Deny employment only if the conviction is job-related and doing so is consistent with “business necessity.”
Be sure to consider the following factors:
1. The nature or gravity of the offense or offenses;
2. The bearing, if any, of the offense(s) on any specific responsibilities of the job or position;
3. The time that has elapsed since the offense;
4. The age of the applicant or employee at the time of the offense;
5. Any evidence of rehabilitation.
See the EEOC Policy Statement on the Issue of Conviction Records (www.eeoc.gov/policy/docs/convict1.html).
Step 6
Let the community know that you are a model employer committed to considering all qualified candidates and building a diverse workforce.
Reach out to the local Chambers of Commerce, Workforce Investment Boards and other local partners to publicize your model practices.
Download NELP’s guide to best practices for employers who conduct criminal background checks (PDF).
Photo credits: Cosima’s Digital Designs, Zoom Zoom
How To Check Your Own Employment Eligibility In The United States
March 21, 2011
Today, U.S. Citizenship and Immigration Services (USCIS) launched E-Verify Self Check, the first online E-Verify program offered directly to the U.S. workforce. E-Verify Self Check, is a fast, simple, secure and free service, that enables individuals to voluntarily check their own employment eligibility status.
If any mismatches are found between the information you provide and your Department of Homeland Security or Social Security Administration records, Self Check will inform you of how to correct those mismatches.
Once you have confirmed your employment eligibility using Self Check, you are unlikely to encounter difficulties upon being hired by an E-Verify participating employer.
USCIS is releasing E-Verify Self Check in phases, with the first phase only accessible to users who maintain an address and are physically located in Arizona, Idaho, Colorado, Mississippi, Virginia, or the District of Columbia.
Learn more about E-Verify Self Check.
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