The Hire Authority Reminds Our Dear Clients & Colleagues
to See Their Doctor for a Yearly Exam—or Earlier if Symptoms Arise.

 

Aside from the protection that a professional employee background check gives an employer from theft, violence, and fraud—and the legal repercussions they can bring—there is even more benefit to employers who use a professional firm.

Legal Immunity for Employers Who Hire Third-party Investigators

Mike Coffey, a Texas-based former HR manager turned background investigator, states that “The Fair Credit Reporting Act (FCRA), the primary federal statute governing third-party background checks, provides limited legal immunity to employers who hire third-party investigators.” And it also protects investigators themselves and anyone who provides them information.

This legal immunity applies to suits alleging defamation, invasion of privacy or negligence in connection with the investigation. “There is no comparable immunity for employers who conduct their own investigations,” says Coffey.

 Notification and Consent

When it comes to laws regarding notification and consent, the FCRA requires employers to notify applicants and employees before requesting background information on an individual’s “credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics or mode of living.”

In general, applicants must be notified in writing that a background check will be conducted, and they must sign a form consenting to it.

Many third-party vendors, including The Hire Authority, will provide clients with disclosure and authorization forms. Coffey further states that FCRA interpretations from the Federal Trade Commission (FTC), which administers the law, suggest that  these disclosure documents can include requests for additional information such as birth date, Social Security number, driver’s license number, and current and former addresses.

When an Employer Decides Not to Hire Based on Negative Information

One might think that it’s an easy decision whether to hire or not based on negative information received in a report. But that’s not always the case. HR managers must comply with the law or face legal consequences when acting on information received.

For example, information involving civil suits and judgments that is more than seven years old must not be included in a report or used against an applicant. In addition, there are laws that employers must adhere to regarding applicants with a criminal history. Massachusetts was one of the first states to “ban the box” when its criminal offender record information law went into effect in 2010. This law prohibits most employers from asking job candidates about their criminal histories on an initial written job application.

The FCRA has stringent instructions for employers who are inclined not to hire based upon negative information.

Before any action is taken, applicants must be provided with a copy of the negative report and a Statement of Consumer Rights developed by the FTC. Many employers will give the applicant a written explanation of a likely decision not to hire based on the report. The FCRA does not specifically state what is a reasonable amount of time, most HR experts suggest that job applicants be given three to five days to contest the information.

Les Rosen, president of Employment Screening Resources, Novato, CA, warns employers not to “do anything on the spot, because it’s illegal.”

When the potential employee in question has had reasonable time to respond, an employer is free not to hire. The employer must give the applicant a “notice of adverse action,” informing him or her of the decision, as well as send another copy of FTC’s summary of consumer rights under FCRA and provide the name, address, and phone number of the consumer reporting agency that provided the report. (As part of that notice, the FCRA requires employers to clearly state that the reporting agency did not make the adverse hiring decision and is unable to provide the applicant with specific reasons why the action was taken.) (Source: HR Magazine)

All these laws are complex. A professional and experienced employee background checking firm is abreast of all existing laws and any revisions to them, as well as new laws that may be created. It is a big risk for a company to try to do this internally as most companies today don’t have the capability to do it on their own.

Protect the business that is near and dear to your heart by implementing a professional employee background check procedure using an experienced outside firm.

Why Choose The Hire Authority for Employee Background Screening?

At The Hire Authority we are experienced, professional, and thorough in our screening, which guarantees that you will receive information that is current and relevant. We also are experts in compliance with state, federal, and county laws that you do not want to violate and be subject to hefty fines or worse. We care about your security, and we will work with you to keep you safe from harm or unnecessary problems. Be safe, not sorry.

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.