FYI Employee Background Screening
Faster, Smarter, Easier Employee Screening
In order to meet a budget shortfall of 3.1 million dollars, the New Hampshire Judicial Branch announced that all New Hampshire courts and judicial branch administrative offices will be closed on the following days:
Read more about the court furloughs (pdf).
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We just received this alert from The National Association of Professional Background Screeners (NAPBS).
Maryland House Bill 175 would prohibit an employer from using an applicant’s or employee’s credit report or credit history in determining whether to deny employment to the applicant, discharge the employee or determine compensation or terms, conditions, or privileges employment; authorizing an employer to request or consider an applicant’s credit report or credit history under specified circumstances; authorizing an applicant or employee to bring an action for injunctive relief, damages, or other relief for a violation of a specified provision of law; etc.
We urge you to participate in this action alert to communicate the impact this will have on employers in Maryland and on companies providing background screening services both in Maryland and nationally.
Dereck Davis, Chairman, House Economic Matters Committee
Re: MD House Bill 175
I am writing in opposition to House Bill 175 – Credit Reports and Credit Histories of Applicants and Employees. This bill, if enacted, would effectively prohibit employers from utilizing credit history in hiring prospective employees.
We are a member of the National Association of Professional Background Screeners (NAPBS) which represents over 700 members and their respective companies. Our company is a national provider of background check and credential verification information for employers. Our clients are representative of the more than 88% of companies in the US who perform background checks on their employees across the country. Our information products protect employers from liability and ensure that newly hired employees pose no financial risk.
Credit reports are integral to the hiring process because employers must determine the accuracy and completeness of a job application. Credit reports are used for employment checks to show former addresses, former employment, and the financial situation of a prospective employee. By using credit reports in the hiring process, employers avoid wasting resources on recruiting, hiring, and training new employees, only to find out later that the hiring decision was based on incomplete or falsified information. Also, employers use credit reports to safeguard against internal theft that can be a result of employees who can not meet their monthly financial obligations.
The use of credit reports for employment decisions is governed and expressly allowed by the federal Fair Credit Reporting Act (FCRA). Under the FCRA, an employer must give the consumer notice that a credit report may be used in the hiring process and require the consumer’s written consent to access their credit report. The FCRA provides important consumer protections by requiring a notice by the employer if an adverse action is taken; i.e. the applicant is not hired. The notice includes the name, address, and phone number of the consumer reporting agency or credit reporting agency that supplied the report. Additionally, under existing federal law, potential employees already receive certain protections relating to employer consideration of prior bankruptcy filings.
It is our hope that Maryland employers will be allowed the continued use of credit reports for hiring decisions. If you have any questions concerning how credit reports are used by employers to make decisions, please feel free to contact me. Thank you for your time and consideration of our views.
Sincerely,
Chris Miller
President
FYI Screening, Inc.
In case you missed any of our employee screening articles for October and November, here’s a quick recap of our most popular:
FYI Screening offers a wide array of customized background screening solutions to meet any need. Human Resources and Loss Prevention Professionals in numerous industries worldwide trust FYI’s screening solutions every day to make smarter, safer and more cost effective hiring decisions.
Psychology Today has an excellent article on this subject titled “Genes and Jobs.”
The Genetic Non-Discrimination Act (GINA) comes into full effect this Saturday, November 21st.
Employers need to take note, and employees should be aware of their rights
Congress passed GINA almost unanimously, and President Bush signed it on May 21, 2008. Described by the late Senator Ted Kennedy as “the first civil rights bill of the new century of the life sciences,”
GINA protects individuals from genetic information discrimination in health insurance and employment
Even some well-informed commentators seem to have missed this landmark piece of legislation. So have some employers. The University of Akron (UA), for example, adopted a policy as recently as August that could require any candidate for employment to submit a DNA sample.
Read more about Genes and Jobs.
The Coalition for Genetic Fairness also gives the following guidelines for employers on how to comply with The Genetic Non-Discrimination Act (GINA).
Furthermore, employers should be aware that it is unlawful for an employment agency, labor organization, or training program to fail or refuse to refer an individual for employment on the basis of genetic information, nor may the agency or labor organization attempt to cause an employer to discriminate against an individual on the basis of genetic information.
Earlier this week I wrote how 100% Of Companies Will Be Using Social Networks As Part Of Their Employee Screening Program By 2012.
Jon Hyman from the Ohio Employer’s Law Blog read this post and offers some advice on how employers can protect themselves when they use social networks to screen applicants.