Follow Up to the EEOC’s Guidance on Criminal Background Checks

Last month the Equal Employment Opportunity Commission (EEOC) filed suit against BMW and Dollar General for violating Title VII of the Civil Right Act by utilizing criminal background checks that resulted in African American employees either being fired or being disqualified for new positions (see post titled “Dollar General and BMW Latest EEOC Victims”). BMW…

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Federal Contractor USIS Failed To Conduct Adequate Background Check

Last month US Senator Claire McCaskill announced at a Senate hearing, that government contractor USIS conducted a background check on Edward Snowden, the NSA contractor suspected of treason. In 2011 USIS performed a background investigation on Mr. Snowden for a security clearance; the company is now under criminal investigation for systemic failure to adequately conduct…

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Colorado Restricts Employers Use of Credit Reports

On April 19, 2013, Colorado Governor John W. Hickenlooper signed Senate Bill 13-018 which significantly restricts employers from using consumer credit reports in making an employment decision. Colorado became the ninth state (after California, Connecticut, Hawaii, Illinois, Maryland, Oregon, Vermont, and Washington) to regulate employers’ use of consumer credit reports in the hiring process. The…

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Employee Turnover by Industries

Posted on April 17, 2013 by cfarzad Reduce Employee Turnover by conducting employment background checks on all new hires. Certain industries experience higher turnover then others, retail for example has a 30% turnover rate. Below are turnover percentages based on industry: Retail 30% Utilities 14% Travel/Hotel 26% Health Svc 20% Government 15% *Bureau of National…

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Who Are The Largest Background Screening Companies

Background screening companies have become very important in today’s world. Employers use background screening companies to check on potential employees, contractors, or in some cases interns or volunteers. These companies can check to see if what a person claims on an application or resume is the truth. Verifying previous employment, education, references, criminal backgrounds and…

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K-Mart Settles Class Action Suit for $3 Million Dollars

You can now add K-Mart to the list of big businesses that have fined for violating the Fair Credit Reporting Act. The major retailer reached a settlement that will pay three million dollars in damages to more than 64,500 members of a class-action suit. The lawsuit alleged that K-Mart violated federal law by failing to…

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