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Best Practices For Employee Screening

What You Need To Know About The FCRA

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An important part of doing a background check on potential hires is accessing their credit information. While it’s not always the case, credit history can be an effective barometer of how responsible and trustworthy an employee will be once you hire him. That being said, the privacy rights of your potential hires are protected by the Federal Fair Credit Reporting Act (FCRA). Today, I want to explain a few important points about the FCRA that you need to know.

Asking Job Candidates’ Permission

Before you access a job candidate’s consumer report (prepared specifically by a consumer reporting agency), you must notify him. Then, you need to receive written permission from the candidate to access the report. One of the provisions of the FCRA is that an employer must communicate to a job applicant that the consumer report may be used to make a hiring decision.

Notifying Candidates Of Adverse Actions

If you end up not hiring a job candidate because of what you discover on his consumer report, you need to tell him so. It can be done in writing, over the phone, or with an email. But, the adverse action has to be communicated.

Failing To Comply

If you fail to comply with the provisions of the FCRA, you may be held liable. If you don’t ask a potential employee for permission before accessing his consumer report, he can file a lawsuit against your company. Similarly, if you fail to notify him of any adverse action you’ve taken, he can also file a lawsuit.

Using The FCRA For Access

Reviewing a job applicant’s credit history can help you make good hiring decisions. While the FCRA was created to protect the privacy of individuals, it provides employers the opportunity to legally access applicants’ credit information. Its provisions require employers to follow certain rules in doing so. But, these hurdles should not prevent you from checking the credit history of potential employees. The hiring disasters you can avoid in the long-run makes it worthwhile.

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Free Drug-Free Workplace Toolkit

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The Substance Abuse and Mental Health Services Administration of the U.S. Department of Health and Human Services has released a new drug-free workplace toolkit. The toolkit provides employers with the latest information, resources, and tools for producing and maintaining a drug-free workplace.

Why You Should Care About Having a Drug-Free Workplace?

Because Substance Abuse in the Workplace Is a Widespread Problem

Alcohol and other drug abuse is widespread in our society. It affects us all in many ways. Although national, State, and local efforts have begun to show encouraging results, the problem of alcohol and other drug abuse remains a serious problem. No workplace is immune. According to the 2006 National Survey on Drug Use and Health, 74.9 percent of all adult illicit drug users are employed full or part time. Most binge and heavy alcohol users are also employed full or part time.

Because Substance Abuse in the Workplace Can Have Serious Consequences

Substance abusing employees often do not make good employees. Studies show that, compared with non–substance abusers, they are more likely…

  • To change jobs frequently
  • To be late to or absent from work
  • To be less productive employees
  • To be involved in a workplace accident
  • To file a workers’ compensation claim

Workplace substance abuse can also have a serious effect on people other than the abuser. For example, some studies suggest that working alongside a substance abuser can reduce nonabusers’ morale and productivity. It also is quite common for substance abusing workers who are involved in workplace accidents to injure other people (rather than themselves), especially if they work in safety-sensitive industries, such as the transportation or construction industry.

Because, in Some Cases, It’s the Law

In 1986 the President signed an Executive order mandating that all Federal agencies be drug-free.
In 1988, Congress passed the Drug-Free Workplace Act, which requires Federal grantees and recipients of Federal contracts of $100,000 or more to comply with certain regulations.

And Because Good Programs Can Help

Employers who have implemented drug-free workplace programs have important experiences to share:

  • Employers with successful drug-free workplace programs report improvements in morale and productivity and decreases in absenteeism, accidents, downtime, turnover, and theft.
  • Employers with longstanding programs report better health status among, and decreased use of medical benefits by, many employees and family members.
  • Some organizations with drug-free workplace programs qualify for incentives, such as decreased costs for workers’ compensation and other kinds of insurance.
  • Employers find that employees, employee representatives, and unions often welcome drug-free workplace programs. If you do not have a program, your employees may be wondering why.

Click HERE to download “Making Your Workplace Drug-Free: A Kit for Employers.”

(This is a PDF download. Please be patient)

4 Tips on How to Avoid Negligent Hiring Lawsuits

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In these tough economic times companies may be thinking about saving time and money by cutting back on their employee screening programs. This would be a big mistake! If you hire a dangerous or unfit person without doing proper “due diligence” and harm occurs, you are opening yourself up to a negligent hiring lawsuit.

Here are several tips to help you avoid a negligent hiring lawsuit :

1. Create a Program

Create an employee screening program for your company. This program should document employee screening policies and procedures for each position in the organization.

2. Train to Ensure Hiring Managers Follow the Program

Train all hiring managers on the employee screening policies and procedures. Document this training.

3. Audit Employee Screening Program

Create an audit procedure to make sure the employee screening program is being followed throughout the organization. Document this procedure.

4. Ensure FCRA Compliance

If you are using a third party employee screening service make sure they are in compliance with the Fair Credit Reporting Act (FCRA).

Top 4 Things You Need To Know About Employee Screening

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It’s boggling to think about, but many employers still fail to conduct adequate employee screening. Sometimes, it’s the cost. Other times, it’s the perceived inconvenience. But, screening your employees before you hire them is critical. Here are the top 4 things you need to realize about employee screening…

#1 – It Protects Your Staff

Screening your employees is an integral piece to weeding out potential hires who might cause violence in your workplace. By weeding them out, you help ensure the safety of your staff.

#2 – Felonies Are The Tip Of The Iceberg

While there are some job candidates who have been convicted of a felony, there are many more who have been convicted of a misdemeanor. That includes physical assaults, inappropriate sexual behavior and even weapons charges. Plus, keep in mind that felonies are often pled down to misdemeanors.

#3 – Enormous Long-Term Savings

The cost of doing a background check on a job applicant is often less than what you’ll pay that applicant for their first day working. But, if that new employee turns out to be a problem, it can cost your company tens of thousands of dollars.

#4 – Ongoing Screening Is Important

A lot of employers conduct an initial background check before hiring a person. But, they never follow-up with subsequent checks. Periodic background checks on your current staff can help your company manage the ongoing risk of a potential problem erupting.

Screening your employees involves much more than simply calling their references and past employers. Your human resources personnel should have a screening process in place to conduct background checks on both prospective hires and your current staff. The cost of neglecting to do so can be massive.

3 Reasons You Need To Screen Employees

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Job applicants often lie or hide information when they fill out an application or submit a resume. Unfortunately, many companies neglect to properly screen these applicants. Once they’re hired, that opens the door for potential theft, workplace violence, or any number of incidents that may lead to legal action. Screening your potential employees is a critical component of ensuring the safety and productivity of your workforce. Here are 3 reasons you need to thoroughly screen your employees…

Reason #1: Most People Lie

I’m not being cynical. I’m being realistic. Many studies have proven that job candidates routinely fabricate or suppress information on their applications and resumes. You need to validate the information by having an effective screening process in place.

Reason #2: Workplace Productivity Increases

Studies show a direct link between employee screening and workplace productivity. This is largely due to higher attendance, reduced turnover and overall stability of the workplace environment. Checking with past employers can help forewarn of potential employee issues.

Reason #3: Employee Quality Increases

Validating past employment and education are necessary, but both are merely scraping the surface. Screening an employee also means conducting a background check to uncover a possible criminal history. In many cases, hiring new employees with a hidden criminal past has led to theft and workplace violence. Effective employee screening helps to protect your workforce and increases the quality of your staff.

Using Routine Screening Procedures

Every company that hires new employees should be screening those employees prior to offering them a position. Not only will a background check expose a potential criminal past, but it can help ensure your staff’s safety and lead to an overall increase in workplace productivity. Remember, if you trust the information provided on an application or resume without validating it, you could be asking for a major employment headache in the future.