Tip of the Month

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Tip of the Month

Tip #1 for January 2014

For each “tip of the month” this year we will focus on 12 different recommendations for creating a non-discriminatory employment background screening program.

When an employer decides to hire or promote an employee they should have a non-discriminatory legally compliant background screening program in place. Not only does this help employers ensure they are hiring the right person for the position, it also limits exposure to negligent hiring claims.

For this month we will focus on the question, “Are background checks legal?”

Yes, they are legal. The Fair Credit Reporting Act was enacted October 26, 1970 and regulates how employers use public record information (i.e. court records, driving records, verifications etc.) on background screening reports.

Consumer Reporting Agencies (CRA’s) are entities that collect and disseminate information about consumers to be used for employment purposes. CRA’s have responsibilities under the FCRA which include:

  1. Provide a consumer with information about him or her in the agency’s files and to take steps to verify the accuracy of information disputed by the consumer.
  2. If negative information is removed as a result of a consumer’s dispute, it may not be reinserted without notifying the consumer within five days, in writing.
  3. CRA’s may not retain negative information for an excessive period. The FCRA describes how long negative information may stay on a consumer’s credit report.

Employers Choice Online Tip of the Month is provided as a free service to clients, friends and subscribers of Employers Choice Online, a division of Diversified Risk Management, Inc. The intent is to provide information of value to attorneys, human resource, security, and risk management professionals. The information contained in this e-mail alert is intended to provide useful information on the topics covered, but should not be construed as legal advice or a legal opinion. Your comments are appreciated. E-mail corporate

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Facts

Workplace Violence One out of every six crimes occurs in the workplace and homicide is the second leading cause of workplace death in the U.S.

Education Falsification National Credit Verification Service reports that 25% of the MBA degrees it verifies on resumes are false.

Statistics

72% of shrinkage is due to employee theft.

34% of all job applications contain lies.

30% of small business failure is caused by employee theft.

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