In his first 100 days in office, Biden signed more than 60 executive actions. These include actions on immigration, labor and minimum wage, national security, the economy, the environment, COVID-19, and more. But many business owners may not realize that the new administration has an agenda that, if implemented, would have a large impact on employees and employee background screening.

Closer Monitoring of Hiring Processes and
Enforcement of FCRA Background Checks

Of course, employers and background check service providers are aware that they must comply with the Fair Credit Reporting Act (FCRA) and the Consumer Financial Protection Bureau (CFPB) that enforces it. Employers know they must provide applicants with proper disclosures and authorizations, and must use up-to-date, accurate background information before conducting background checks.

FCRA violations can be costly, in the form of fines and lawsuits: “Over the last decade, employers and background screening companies have shelled out more than $325 million to settle litigation related to background check violations.” (Source: Fast Company, 5/1/21)

So what will change? Under the new Biden administration, there will be more government oversight of hiring processes and enforcement of FCRA background check rules. Biden appointed a new head of the CFPB, Rohit Chopra, who will oversee a stringent FCRA enforcement, probably resulting in more infractions and fines if employers aren’t careful.

New Legislation for LGBTQ Rights, Religious Exemptions,
and Age Discrimination

The Society of Human Resources Management (SHRM) reports that the Biden administration has indicated “support for a host of new legislation regarding pay equity, LGBTQ rights and religious exemptions, accommodations for pregnant workers, and updates to age-discrimination provisions.” This would result in more stringent oversight by the Department of Labor and the Equal Employment Opportunity Commission (EEOC).

Federal Legalization of Marijuana

Not directly due to the Biden administration, but many states voted on election day to legalize marijuana. There’s every indication that the federal government may follow the lead of more than 30 states in decriminalizing marijuana. Employers will still be able to ban the substance in the workplace, but employment drug testing may change to not include it. In addition, legalization would likely bring about an increase in marijuana-related employee rights violations and present a scenario where employers must question what they can do if applicants test positive for marijuana.

More Federal Oversight of Recent and Existing Employment Laws

In other blogs we have mentioned recent changes in employment laws, such as :

•  “Ban the box,” which regulates how and when employers can question applicants regarding their criminal history.
•  Salary history bans and credit history check restrictions.
• Paid family leave requirements.

Under the Biden administration, compliance with these existing laws is promised to be more closely monitored.

The Biden Administration Means an Increased Need for
Professional Employee Screening

So, now more than ever, is a time for employers to take a look at their employee background screening approach and think about hiring a professional and experienced employee background screening agency. With more complex employment laws and a vastly stepped-up monitoring under the Biden administration, employers, more than ever before, will need to make sure they are in compliance. It is much easier now for things to fall through the cracks. A professional firm will be familiar with new and existing legislation with regard to employee law; ensure that you are in compliance; and prevent you from facing the consequences of large fines—or worse.

Why Choose The Hire Authority for Employee Background Screening?

We are experienced professionals who keep abreast of all the laws governing employee background checks so that you do not risk breaking them and paying the consequences. At The Hire Authority we are thorough in our screening, which guarantees that you will receive information that is current and relevant. We care about your security and we will work within your budget to keep you safe from harm or unnecessary problems.

 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.

 

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