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Legal Compliance

Immigration Crackdown – HR Director Indicted

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Federal authorities raided a poultry plant on Tuesday, detaining more than 300 workers believed to be in the country illegally and searching for evidence of unlawful hiring practices.

The plant’s human resources director, Elaine Crump, was arrested in July. She was indicted on 20 felony counts charging that she instructed employees to use fraudulent employment eligibility forms. She is expected in court later this month.

Authorities allege Crump instructed human resource employees to use previously signed employment verification documents for new hires. Crump knew that the company official who had signed the verification papers could not have witnessed whether immigrant job applicants provided the required documentation, the indictment states. That’s because the company official was no longer working at the plant.

Read the story…

Four Red Flags To Look For In A Credit Report

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Red Flags

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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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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New Passport Card Can Be Used For Form I-9

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On August 8, 2008, U.S. Citizenship and Immigration Services (USCIS) made an announcement that the new U.S. Passport Card may be used in the Form I-9 process.

Last month, the Departments of State and Homeland Security announced that the new passport card was in full production. The new card provides a less expensive and more portable alternative to the traditional passport book, and will expedite document processing at United States land and sea ports-of-entry for U.S. citizens traveling to Canada, Mexico, the Caribbean, and Bermuda.

The new card cannot be used for international air travel, but it is a valid passport that attests to the U.S. citizenship and identity of the bearer. The card may be used for the Form I-9 process and can also be accepted by employers participating in the E-Verify program.

The passport card is considered a “List A” document that may be presented by newly hired employees during the employment eligibility verification process to show work authorized status. “List A” documents are those used by employees to prove both identity and work authorization when completing the Form I-9.

Did you know…

  • If you are an employer, you must retain Form I-9 for three years after the date employment begins or one year after the date the person’s employment is terminated, whichever is later.
  • Failure to provide Form I-9s for inspection is a violation of the employer sanctions laws and could
    result in the imposition of civil money penalties.
  • That an employer can be fined up to $3,000 or imprisoned up to 6 months for engaging in a pattern or practice of knowingly hiring and continuing to employ unauthorized aliens.

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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).