In this day and age, companies are becoming increasingly concerned with their financial well-being and corporate responsibility. For most of them, this means ensuring employee safety and candor in the work place.
Background screening companies like First Contact HR are here to keep company work environments safe by mitigating risky hires, while also remaining legally compliant. Providing background checks means background screening companies must have a high standard for legal integrity to help their clients make the best hiring decisions.
In recent new headlines, organizations with the most stringent background screening processes – ones who are not following EEOC guidelines – are using their background screen reports for the wrong reasons. Hiring managers can be lead askew by either faulty measures put in place by their human resource department or poor decision making.
PepsiCo became a poster-child for poor hiring practices when it denied employment to more than 300 African Americans and Hispanic job applicants who had arrest records. According to the EEOC, this practice was deemed discriminatory and resulted in a fine. Under EEOC guidelines, a company cannot bar applicants from employment for having an arrest record with no associated conviction.
Major lawsuits are not the only reason people are buzzing over questionable HR decisions. Wells Fargo received public backlash after its decision to try and purge itself of anyone who had been convicted of certain crimes. Over the summer, Wells Fargo instituted a practice of running criminal background checks on all of its employees and firing those who had records they deemed to show instances of dishonesty or a breach of trust. While they had good intentions – believing they were complying with federal guidelines and practicing corporate responsibility in times of economic hardship – they began firing people who had minor offences from their past.
Wells Fargo fired employees like Yolanda Quesada, and Richard Eggers. Quesada was a telephone operator at Wells Fargo for five years who achieved awards and certificates commending her success within the company. When background checked, she lost her job due to an arrest record for shoplifting forty years prior. She explained that she was one of twelve children and when she was young, she needed to steal clothes for her struggling family on a few occasions. Nevertheless, for these minor offenses that happened four decades ago, Quesada lost her job.
Richard Eggers, a Vietnam veteran was employed for seven years by Wells Fargo and was also fired from his position due to what came to light in his background check. When he was 18 years old Eggers was arrested for putting a cardboard dime into a washing machine’s coin receptor. Eggers, who is now 68, admitted that he put the fake dime into the machine because he was bored while waiting for his friend to do laundry. Again, a very minor “criminal offense” landed him in jail for two days back in 1963. Still, Wells Fargo relieved him of his position, but later reinstated him.
As rules and regulations continue to change, it becomes increasingly difficult for companies to adhere to all federally mandated hiring guidelines. That’s why it is important for companies to partner with a background screening company they trust; one that will take the guesswork out of the hiring process and make sure their clients are legally compliant. Doing so will benefit the company in the long run, save the company money and help protect the company’s image from embarrassing employee termination snafus.
HR Expert Opinion:
A 2010 survey conducted by Society of Human Resource Management revealed that 92 percent of employers are conducting employment background checks. Unfortunately, many of these employers lack the proper guidance to conduct these checks in a manner consistent with Federal , state and local laws. As a result, a backlash has been created from potentially qualified applicants or employees, who have been denied employment for the wrong reason.
Employers should become knowledgeable about the Federal laws and guidelines pertaining to background checks, such as the Fair Credit Reporting Act and the new guidance issued by the Equal Employment Opportunity Commission. They should also review and know their state and local laws.
Had the employers cited above considered carefully the EEOC’s position on the use of arrest and conviction records before making termination decisions, the cost and negative PR they experienced could have been avoided.
For more information or assistance on setting up a comprehensive and legally compliant background screening program, visit First Contact HR at www.firstcontacthr.com, call Toll Free at 866-406-2142, or email info@firstcontacthr.com. First Contact HR is an award-winning, nationwide background screening firm. and member of the National Association of Professional Background Screeners (NAPBS).
