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Legal Compliance

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).

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.