Download - FCRA- Fair Credit Reporting Act 2014 Screening Your Applicants & FAIRNESS in All Things Hiring
Screening your Applicants & All Things Hiring
Bringing your hiring process out of the shadows and into the light in a simple and easy solution to ensure FAIR hiring practices.
Violated Federal Hiring Guidelines
Paid Out Millions of Dollars in Lawsuits
Can you AFFORD to end up on this list?
Presenters:
▪ Jane McFadden- Client Advocate- Education and Outreach of updates, products, and services.
▪ John Robinson- Compliance Officer- Stay up to date on latest laws and legislation to keep our clients compliant.
Fair Credit Reporting Act
▪ Why is it regulated?
▪ What does it mean to me?
▪ What are the regulations
▪ How do I stay compliant?
▪ Questions?
Federal Trade Commission 1970
▪ Mistakes in Public Record
▪ Databases are not complete or current
▪ No Recourse Legal or Otherwise
▪ Records have mistakes
▪ 2013 FTC 26% estimated error rate
▪ Everyone should have a “fair shake”
▪ Win-Win for company and candidate
The FCRA is a federal law that regulates the collection, assembly, and use of consumer
report information
Giving the APPLICANT a FAIR SHAKE
A chance to tell their story
The FCRA is a federal law that regulates the collection, assembly, and use of
consumer report information
Out of the Dark Ages
Legal Hiring Practices Vs. Ignorance of Laws
Due Diligence Vs. Negligent Hiring
Fairness Vs. No Right to Know
Mitchell Fenton, CPPChief Security Officer at Baltusrol Golf Club
Improving your club’s safety and security
Improving your Safety and Security Presentation
Background Checks
▪ Living inside our club bubble- the industry is
changing from the days of turning our head to
one of litigation on negligent hiring, workplace
violence and harassment lawsuits awards with
huge numbers
▪ You’re looking for a company with state look ups
along with national checks
▪ If your club is not providing them on every
employee you are placing your club and your
membership in harm’s way.
Mitch Fenton Dec. 2012
A GM/COO could
be civilly liable
for a case of
negligent hire
Good Employee Employment Screening
Legal Compliance
Best Practice: Follow FCRA, EEOC, and State Laws
Consumer Reports
Information obtained about the applicant for employment purposes.
•Criminal Record Search•Driving Record Search•Reference Check•Education Verification•And Many More…
http://www.business.ftc.gov/documents/bus08-using-consumer-reports-what-employers-need-know
CRA’s
If you use someone else for information on any consumer report you must comply with FCRA
CRA= Any person that compiles and furnishes a “consumer report”
CRA’s Responsible for: being LEGAL and FAIR
Accuracy of a Report-
information from originating
sources
Up to date information- Current
Handling Disputed information
4 Simple Steps to FCRA
1. Disclosure
2. Authorizati
on
3. Pre-Adverse Action
4. Adverse Action
They might be simple, but we make them easy.
PAUSE
Disclosure
Applicant is told there will be a background check run on them
Authorization
The applicant gives written consent to the background check being performed
Pre-Adverse
Applicant is notified there is disqualifying information on the background check
Adverse
Action
Applicant is informed they will not be hired due to the information on the report
PAUSE
DisclosureInforming the applicant a background screen will be performed.
Authorization
Candidate signing they agree to the background check.
Steps 1 & 2 Disclosure & Authorization
Employer’s ResponsibilityWhen using a consumer report
Was information found that would disqualify the applicant?
No
PAUSE
Disclosure
Applicant is told there will be a background check run on them
Authorization
The applicant gives written consent to the background check being performed
Pre-Adverse
Applicant is notified there is disqualifying information on the background check
Adverse
Action
Applicant is informed they will not be hired due to the information on the report
PAUSE
Pre-Adverse Action
This is the notice given to applicants informing them that derogatory information was found on the consumer report.
PauseLet’s hear what the candidate has to say!
A “Fair Shake” to tell their story
Adverse ActionInforming the candidate you are NOT hiring them based in whole or in part on their consumer report.
Is there a Mistake?
Give applicant time to dispute the Consumer Report
Hire the applicant –OR–
Send Adverse Action Notice
Send Adverse Action Notice
Advise Candidate to Re-Apply
2 Options
4 Simple Steps to FCRA
“I do my own check”
Privacy & Discrimination
Source of Information
Excessive Information
Ignorance is no excuse under the law
Negligence- for missing what’s out there
Discriminatory- inconsistent with what you search
EEOC- Federal and State Regulations
“I don’t do any check”
▪ Are you taking the basic steps to avoid bad hires?
▪ Are you responsible for safety in the workplace?
What you don’t know about your applicant CAN hurt you!
NO EMPLOYER IS INVULNERABLE TO LITIGATION FROM
NEGLIGENT HIRING.
Companies have an obligation to keep their environment safe.
Employees
Patrons
Vendors
TABITHA LYNNAE COTTRELL VS
CRESTMOOR GOLF CLUB ETAL
&IMT INSURANCE CO VS
CRESTMOOR GOLF CLUB ETAL
4:03-cv-40269
Besides the legal obligation…If an Employee had a violent record or is a habitual
thief, would you want to know about it?
Out of the Dark Ages
Legal Hiring Practices Vs. Ignorance of Laws
Due Diligence Vs. Negligent Hiring
Fairness Vs. No Right to Know
Disclosure
Applicant is told there will be a background check run on them
Authorization
The applicant gives written consent to the background check being performed
Pre-Adverse
Applicant is notified there is disqualifying information on the background check
Adverse
Action
Applicant is informed they will not be hired due to the information on the report
PAUSE
We’ll be happy to take some time and answer your
questions.
Thank You!
QUESTIONS?