The rising popularity of background checks has given rise to new trends for vetting new hires and employees by organizations across the U.S.The growth of background checks also permeates other areas such as screening of volunteers, contractors, business partners, board members, housing tenants and even purchasers of guns. Here’s a list of the latest 10 ten trends for 2013 complied by First Contact HR.
1. EEOC Enforcement Guidance is in effect
Enforcement Guidance issued by the Equal Employment Opportunity Commission on April 25, 2012 are now live as of January 2013. The changes are intended to prevent discrimination to minority applicants through the use of criminal records.Accordingly, make sure your company has made proper adjustments to your current screening practices to ensure that you are in full compliance and can create a defensible position that will stand firm under strict court scrutiny. If you have missed this story previously, check out our blog post to quickly catch up with recommended guidance changes.
2. Accuracy of Criminal Background Checks Questioned
New concerns have arisen regarding the accuracy and credibility of data provided by background screening firms following a $2.6 million penalty against a top background screening company for failing to reinvestigate consumer disputes. Granted not all background screening firms (CRAs) has experienced this issue. According to a report issued by the National Association of Professional Background Screeners (NAPBS) over 98 percent of background screening providers surveyed encountered consumer disputes less than 5 percent of the time. In addition, over 95 percent of those disputed background check reports were found to be accurate. As described by the EEOC, the best resolution that can be taken by employers to avoid issues is to discuss the possible conviction with the applicant prior to making any adverse hiring decision.
3. Reduction inOff-shoring of Personally Identifiable Information
With identity theft increasing to 1 out of every 20 consumers, many background screening firms (AKA, consumer reporting agencies) have taken steps to protect secure data, such as Social Security Numbers and Dates of Birth. One of the best ways to limit this vulnerability to is stop or reduce the transmission of personally identifiable data outside the U.S.Employers are taking steps to reduce the use of background screening vendors that have off-shored all or a portion of their operations in an attempt to minimize potential risks and breaches of personally identifiable data from occurring.
4. Class Action Lawsuits for Violating the FCRA
With growing knowledge and understanding of the Fair Credit Reporting Act which governors consumer’s rights pertaining to background checks, groups of disgruntled applicants are filing class action lawsuits against companies that do not comply properly with federal regulations. The lawsuits range from employer’s failure to supply adverse action letters, proper review of possible criminal record hits with applicants, to improper use of online applicant tracking systems, as occurred with K-Mart (http://firstcontacthr.com/blog/?p=363).
5. New State Laws require use of E-Verify
If you are a private employer from Georgia, North Carolina, Pennsylvania, or Tennessee,prepare to register for and begin using the federal E-Verify electronic employment eligibility verification system. Specifically in Pennsylvania, The Public Works Employment Verification Act requires all public works contractors and subcontractors with the state to enroll in and use E-Verify for newly hired employees beginning January 1, 2013 – but only if the project is worth $25,000 or more.In order to participate in the E-Verify program, an employer must execute a Memorandum of Understanding.
6. Multi-jurisdictional Searches Not a Viable Alternative to County Level Searches
Nothing beats data straight from county court records. A national database scan, also known as a multi-jurisdictional search, scans a compiled private database of various criminal records. The data in the scan is not always the most up-to-date and if you used incorrectly during a hiring decision could lead to negligent hiring lawsuits or EEOC penalties. The national database scan used exclusively can create a false sense of security and will most likely yield false positives (e.g., a criminal record hit with the same name but against another subject) and false negatives (e.g., no criminal records found, but a record does exist just not in the database). Therefore, employers should always supplement this searches at the county courthouse level.
7. Government Cracks down on Criminal Records Mobile Apps that Violation the FCRA
The Federal Trade Commission has taken steps to remove and force injunctions on mobile apps that violate the Fair Credit Reporting Act. Some background screening mobile application creators have been fined for not ensuring that the supplied data would be accurate and would be used only for legally permissible purposes. Employers should always use established background screening companies that take proper steps to comply with federal, state and local regulations regarding criminal records and other consumer data
8. States Challenge Use of Social Media for Background Checks
Maryland, Illinois, and California passed laws in 2012 prohibiting employers for asking for social media usernames and passwords of applicants and current employees for background check purposes. This reveals a growing trend of protecting applicant rights from invasive searches of personal data prior to hire. However, many states still allow adverse action to be taken on current employees who post inappropriate information on social media sites in violation of company policy or that may reflect poorly on the company that employs them.
9. Ban the Box Legislation Gaining Traction on Employment Applications
Many urban cities across the U.S. including Trenton and Newark, New Jersey, Philadelphia and Pittsburgh, Pennsylvania, and Wilmington, Delaware have passed regulation banning employers from using a check box to ask about criminal history prior initial interview or employment. The stated objective by city officials is prevent applicants with criminal backgrounds from being excluded early in the hiring process simply for having a criminal background. Employers may still perform background checks on applicants and use criminal records as a bar from employment that are job-related and pose a business risk. Employers should take care to follow EEOC guidance issued in April 2012 when taking adverse action.
10. Debate continues on Universal Background Checks over New Gun Control
Following numerous tragedies, including the Sandy Hook Elementary School shooting, universal background checks for anyone seeking to purchase a firearm takes center stage at a national level. The universal background check is intended to close loopholes that allow unscreened purchases at gun shows or through private sales. The current law is designed to prevent convicted felons, people convicted of violent domestic crimes, and those determined by the courts to be dangerously mentally ill from buying firearms. However, one issue with the current systems is that many states do not report the names of people who have been legally labeled dangerously mentally ill. Be sure to keep a close eye on this story as the debate intensifies across the political battlegrounds.
