Monday, March 7, 2016

Careful Hiring Can Cause Additional Headaches if You Don’t Know the Law!

A responsible employer may be conducting routine background checks prior to hiring.  This is a standard practice in business, making sure you know what you are getting when hiring an employee.  But some types of actions that an employer can take in conducting a background check may cause more headaches if not done properly.  Here are some things to keep in mind.

The Fair Credit Reporting Act
If you use any third party to conduct a criminal or other background check, you must comply with the Fair Credit Reporting Act.  Amazon and Staffing Management found this out the hard way when they were sued in mid-2015 in a class action lawsuit seeking damages for all applicants rejected based on a criminal background check.  While the suit has not yet been certified or resolved, the damages could be astronomical.  What did Amazon allegedly do wrong?  They hired Staffing Management to conduct criminal background checks, and when a cocaine possession conviction came up on the plaintiff’s record, Amazon did not hire him.  But they also did not provide him with notice about conducting the check, giving him a chance to dispute the report, as required by the federal Fair Credit Reporting Act.  FCRA requires employers who are using a third party to conduct background checks to get an applicant’s approval prior to conducting a background check, inform applicants that the information gathered might be used to make employment decisions, provide applicants with a summary of their rights, and provide them with any negative report prior to making the non-hiring decision.  This failure to follow FCRA may indeed cost Amazon, and many other companies, a lot of money. 

Anti-Discrimination Laws
The EEOC also has guidelines for background checks, stemming from a long time mistrust of such checks, especially criminal background checks, as potentially be used to screen out applicants based on race or other protected classes.  Consequently, the EEOC requires that:
·         The same standard be used for all applicants regardless of protected class,
·         Employers avoid criteria for exclusion that could have a statistically higher impact on persons of a particular class,
·         Employers should be prepared to make exceptions if issues revealed during a background check were the result of a disability.
·         The illustrated need for, and the use of, criminal background checks, should be based on criteria that are job related and consistent with business necessity. 
The EEOC also strongly recommends that employers use these criteria in screening for criminal history: 1. Look at the nature and gravity of the offense. 2. Look at the time that has passed since the offense. 3. Look at the nature of the job sought. 4. Conduct an individualized assessment while using similar standards for all applicants.
This is an area where the EEOC is litigating several cases, and states and localities are beginning “ban-the-box” efforts to forbid asking about criminal background, so it is wise for employers to pay close attention to this area. 

Genetic Information
The Genetic Information Nondiscrimination Act (GINA) forbids employers from gathering or using genetic information to make employment decisions.

Medical Testing
Pre-employment medical inquiries are specifically prohibited  by the ADA and EEOC enforcement guidances until after a conditional offer of employment is made. Then, if medical information is received, it cannot be used to screen applicants with disabilities.  

Social Media Searches
Privacy laws are a concern when conducting research on social media, so only publicly available information should be searched, and used carefully. 

What should employers do?
Develop specific, job-related criteria for what types of criminal convictions will exclude individuals from employment.
If you use a third party to conduct background checks, make sure you are following all of the FCRA requirements. 
Keep all information gathered confidential.

Train all supervisors on what kinds of things can be asked or explored in the application process.  

No comments:

Post a Comment