PLEASE NOTE: The Hire Authority is conducting business throughout the COVID-19 (Coronavirus) crisis. Our internal office is staffed with both owners and essential personnel and we also have remote staff workers, so our product (employment screening background checks) will continue without interruption. —  Phil Sharkey, PBSA, LPDAM, The Hire Authority, Inc. (508) 230-5901 psharkey@hireauth.com / www.hireauth.com

 

Now that things are getting somewhat back to normal with regard to the pandemic, businesses are looking to hire employees, especially in the education, retail, restaurant, hospitality, healthcare, and manufacturing sectors. As we stress in all of our blogs, a professional employee background check is of the utmost importance to safeguard your business and the employees who work for you.

Today I’d like to discuss the issue of compliance to federal laws when hiring employees and doing their background checks. There is much to be aware of with regard to compliance, and violations can result in large fines and lawsuits—neither of which a company wants to face.

Employers want to find out about a potential employee’s work history, education, criminal record, financial history, medical history, or use of social media. This is not illegal.

Discrimination

BUT when you use that information to make a personnel decision, you must comply with federal laws that protect applicants and employees from discrimination. This includes discrimination based on:

• Race
• Color
• National origin
• Sex
• Religion
• Disability
• Age (40 or older)
• Genetic information (including family medical history)*

These laws are enforced by the Equal Employment Opportunity Commission (EEOC).

* It is usually illegal to use this information in a hiring decision. The EEOC has publications that explain the Genetic Information Nondiscrimination Act (GINA).

The Fair Credit Reporting Act

Many companies do a credit check as part of their employee background screening. It is okay to do this as long as the employer complies with the Fair Credit Reporting Act (FCRA). The Federal Trade Commission (FTC) enforces the FCRA. Also, states and cities/towns may have their own regulations for the use of such information.

Inform the Applicant about the Background Check

In all instances of employee background checks the FCRA requires that the employer 1) inform the applicant about the check (but not on the application) and 2) tell them the information will be used in the hiring decision. Employers must get the applicant’s consent in writing. This pertains to employers, HR departments, and outside investigative agencies.

If you do use an outside investigative agency, you must tell them that you have notified the applicant and gotten their permission to get a background report; complied with FCRA requirements; and won’t discriminate against the applicant or otherwise misuse the information in violation of federal/state equal opportunity laws/regulations.

Decisions to Hire or Fire Based on Background Info

If an employer decides not to hire an applicant, or decides to fire an existing employee based on background information received, they must give each two things: 1) a notice that includes a copy of the consumer report that influenced your decision; and 2) a copy of “A Summary of Your Rights Under the Fair Credit Reporting Act.”

Then, an employer must tell the applicant or employee (orally, in writing, or electronically) that:

• They were rejected because of information in the report;
• The name, address, and phone number of the company that sold the report;
• The company selling the report didn’t make the hiring decision;
• They have a right to dispute the accuracy or completeness of the report, and to get an additional free report from the reporting company within 60 days.

(Source: EEOC)

There are also EEOC and FTC requirements regarding storing and disposing of these records.

Why Choose The Hire Authority for Employee Background Screening?

As you can see, there are many laws and regulations to abide by when screening a potential or existing employee. This is all the more reason to use a professional, experienced, and expert team that’s aware of the law with regard to pre- and post-employment checks.

The Hire Authority is thorough in our screening and makes sure to keep up to date with all recent legislation and regulation so that our clients are compliant with the EEOC, FTC, and FCRA.

We’d be happy to talk to you about screening your employees. Call us at
(508) 230-5901 or visit our website www.hireauth.com with any questions you may have. Be safe, not sorry.

The foregoing should not be construed as legal advice. Employers should always consult their own legal counsel for advice on labor and employment matters.