content/uploads/lawsuit34.jpg Keeping Your HR Department Out of the Courtroom by Maintaining New Hire Compliance

1. Summary of Rights 2. Notification 3. Authorization 4. Pre-Adverse Action 5. Adverse Action Your Requirements Under the Fair Credit Reporting Act

Section 604 (b) 2: Disclosure to Candidate Written Authorization from Candidate The Fair Credit Reporting Act

Section 604 (b) 3: Conditions on use for adverse action -Letter -Copy of Background Report -Summary of Rights The Fair Credit Reporting Act

Failed to: 1.Provide a copy of the report to their candidate 2.Provide a Pre-Adverse Action Letter 3.Provide Written Disclosure of Adverse Action 4.Confirm criminal history found in a database search.

Failed to: 1.Provide candidate’s rights under the FCRA 2.Provide a clear stand-alone document 3.Provide a Pre-Adverse Action Letter

Summary of Rights Under the Fair Credit Reporting Act Must be provided to the candidate prior to the background check.

Disclosure of the Background Check The Disclosure must be separate from the Authorization Form

Authorization of the Background Check Companies must receive written authorization prior to conducting a background check.

Pre-Adverse Action Letter Must provide the candidate a reasonable amount of time to dispute information contained in the report.

Adverse Action Letter Must provide a copy of the report and the candidate’s rights.

Ban the Box Making it easier for job seekers with a criminal past Removal of check box No signs of slowing down Creating new headaches Delays hiring process

Bills are given names… Right to Work Equal Employment for All Fair Chance Adherence to Title VII Complications for employers

No two versions are the same Often conflicting/overlapping with… Anti-discrimination laws FCRA Other laws

Hidden Factors Hurting small businesses Standards that differ from federal guidance Limitations on types of records employers consider

Impact on Employers -Companies doing business in multiple states -Hiring with insufficient information -Employers may choose to do less screening …out of fear

Alternative Policies for Employers Tax Credit Programs Certificates of Rehabilitation Expansion of Expungement Opportunities

Who’s banning the box? Currently 13 states and more than 60 cities and counties now have ‘ban-the-box’ laws… …and others are expected to follow

Use of Credit Checks… …for employment purposes Applicant’s integrity/responsibility Position of financial trust Handling money and other property

More than just Financial Information Bankruptcies/Liens/Judgments Identity & Age Employer & Residence OFAC

Word of Caution Not appropriate for every job Many states/cities passing legislation Consult legal counsel

Who is limiting? California Colorado Connecticut Hawaii Illinois Nevada Oregon Vermont Washington

Dedicated Account Manager Faster Turnaround Times ATS Integrations Customized Packages FCRA-Compliant Solutions 33+ Years of Experience