Over the past few years, litigation is on the rise in employment background screening, due to increased regulations and scrutiny of the background screening process by the Equal Employment Opportunity Commission (EEOC), Federal Trade Commission (FTC), and other federal/state and industry-specific auditing agencies. Recently, employee/candidates have filed a significant number of class-action lawsuits, causing companies to pay out millions of dollars in settlements, which is causing companies to take a deeper look into their screening process. We have listed a few KEY areas to review with your legal counsel, about your employment screening program, to help reduce risk and how we can help you with that process:
Here at Background Examine, we operate under strict guidelines and procedures when running a background check on your applicants. We are proud to offer our clients the most detailed screening options for their necessary screening programs.
Following all FCRA, FTC and EEOC Guidelines –
Over the past few years, both the EEOC and FTC have focused more on the topic of employment screening, making sure organizations are fair and just in their practice of hiring candidates. The EEOC had published an updated guidance for Consideration of Arrest and Conviction Records in Employment Decisions
Under Title VII of the Civil Rights Act of 1964, which can be found here – Guidance.
This guidance focuses on how employers can use criminal records within the hiring process. It is important for employers to understand the guidelines for using criminal information from a background check in order to mitigate their risk and avoid litigation.
Providing the Proper Disclosure and Authorization Forms –
This might be the most important thing in the current litigious environment. There have been a number of recent cases, with the most recent “Gilberg v. California Check Cashing Stores, LLC, No. 17-16263, 2019 WL 347027 (9th Cir. 2019)”.
The key takeaway from this recent case is that not all disclosures are created equal, and you need to make sure you are supplying your applicants with the correct legal authorizations which can be viewed in our recent article about how using our QuickApp feature will keep you compliant.
Following the Adverse Action Process Properly –
If at any time, any part of a candidate’s report influences your organization to potentially not hire a candidate, that candidate has a right to dispute the reported information for any inaccuracies. This is called the Adverse Action Process. Many organizations have been sued for not following the federally and state required procedures, which likely could have been avoided if they had understood the simple, but required process.
Within our Screening System is the ability to electronically manage your “Adverse Action Process” by emailing your applicant the necessary paperwork required when adhering to the Adverse Action Policy. This allows you to streamline your screening process and remain compliant under the EEOC / FCRA /FTC.
Review your own policies and procedures with your legal team –
It is always recommended to work with your legal counsel as often as necessary to verify that no changes to the laws/regulations pertaining to employment screening have occurred either federally or in your state(s). Also, the periodic review of internal hiring procedures is essential so that your organization reduces its risk by committing to legally sound, standardized screening and hiring procedures. By providing information to your employees in your written company policies and procedures manual and regularly updating hiring staff on the required procedures, you will ensure consistency in your hiring program.
If you are interested in reviewing your policies and want to find the best legal advice in the Labor & Employment law field, we are happy to recommend you to the best in the United States.
By paying attention to the above areas, you can help reduce the risk of lawsuits or other unintentional consequences from inadequate processes. If you would like more information on on any of the above areas, we are happy to help guide you in the process. Our screening system has been designed for compliance and effective screening procedures.