1. Top 10 Reasons for Employment Denial
The information presented by Inquirehire is not intended to be legal advice. 
Inquirehire recommends that you consult with legal counsel before making any decisions related to the information presented.
Alan Kinsey

2. Top 10 Reasons for Employment Denial
1. Failed the Drug Test
12% of applicants admit to using illegal drugs at least once per week.
An increasing number of employers are conducting drug tests in response to the growing legalization of marijuana for medical and recreational purposes.
If an employer conducts drug testing, it is very likely they have a policy which prohibits hiring anyone who fails it.
When challenged in court, employers generally win because they have the right to protect co-workers and customers from employees who may be under the influence of drugs.

3. Top 10 Reasons for Employment Denial
2. False Statement on Application or Resume
Most applications require the candidate to be truthful. Failure to do so, and getting caught, will be an adequate reason for most employers to deny employment.
There are many cases where the event that was lied about would not have, by itself, caused the employer to deny employment. The dishonesty was considered more significant than the event.
20% of applicants lie about their education history, and 40% lie about past employment history.

4. Top 10 Reasons for Employment Denial
3. Listed on a Sex Offender Registry
Any listing on a sex offender registry will usually be enough for any employer to deny employment.
Risk of Negligent Hiring Lawsuit– if an employer hires a registered sex offender, and anything occurs in the workplace, the employer will likely be sued for negligence in hiring, and they will probably lose.

5. Top 10 Reasons for Employment Denial
4. Criminal Conviction for Dishonesty or Violence
Dishonesty examples include shoplifting, theft, forgery, bribery, embezzlement, fraud, writing bad checks.
Violence examples include assault, battery, manslaughter, attempted murder, murder.
Most states categorize these convictions as simple misdemeanors, serious misdemeanors, aggravated misdemeanors, and felonies.
Bad Judgement vs. Intentional Harm
Frequency, Recency, and Severity of Conviction
10% of the population has a criminal conviction in the last 7 years.

6. Top 10 Reasons for Employment Denial
5. Inappropriate Posts on Social Media
Advocating Violence
Drug Usage
Vulgarity, Profane Language, or Nudity
Racism and/or Hate Speech
Discriminatory Attitudes

7. Top 10 Reasons for Employment Denial
6. Poor Driving Record
OWI/DWI – especially more than 1
Multiple tickets for speeding, improper lane change, failure to yield
Employer may not be able to insure if driving is required
Suggests candidate has a poor track record for following society’s rules – how will they follow the employer’s workplace rules?

8. Top 10 Reasons for Employment Denial
7. Poor Credit Report
Legal Restrictions/Exceptions vary by state.
Banking, Insurance, Financial Services are especially sensitive to poor credit report. Positions that handle large amounts of cash or approve invoices are also sensitive to credit report.
Employer must be able to show “job relevance” and “business necessity”.
Employment credit reports cannot legally provide the 3 digit credit score.
An employment credit report does not count as a “hit” on the credit report.

9. Top 10 Reasons for Employment Denial
8. Unexplained Employment Gaps and Bad Employment References
Employment Gap – should be explained honestly if it exists.
Reference - a statement from a prior employer regarding past job performance. More than just employment verification. Most employers are very reluctant to give this type of information out.
Several web-based systems available that do collect qualitative work performance history.

10. Top 10 Reasons for Employment Denial
9. Lack of Qualifications
Lack of prior experience in the field
Lack of educational achievement considered job relevant
Lack of specific skills required – welding
Lack of specific abilities – lift 50 pounds

11. Top 10 Reasons for Employment Denial
10. Below Average Score on Aptitude Assessment
Many employers use assessments to test job relevant skills, behaviors, and personality traits.
Assessments are more predictive of future performance than interviews, work history, or education.
Employers must use scientifically validated assessments to avoid hiring discrimination accusations.
33% of tested applicants do not meet an employers minimum requirements.

12. Top 10 Reasons for Employment Denial
Background Checks
Over 90% of employers report they do some form of pre-employment screening or background check
Options include using a third party provider, known as a Consumer Reporting Agency, employer does it on their own, or a combination of both approaches.

13. Top 10 Reasons for Employment Denial
What can the employer do on their own?
Driving record check in most states
Limited sex offender registry check
Social media check
Employment verification
Education verification

14. Top 10 Reasons for Employment Denial
Where does the employer need help?
Thorough criminal record checks – employers do not have access to necessary sources
Thorough sex offender check
Credit report
Aptitude testing
Professional references
Quality drug test with MRO

15. Top 10 Reasons for Employment Denial
Employer Conducted Background Check
If the employer conducts the background check on their own, in most states there are few regulations regarding their actions or processes.
Some states will require a certain type of background check for certain types of positions – teachers, day care workers, skilled care providers. Often this required check is grossly inadequate.
Some states have regulations on what information can be used to deny employment.
Some states have regulations on the notification of employment denial.

16. Top 10 Reasons for Employment Denial
FCRA (Fair Credit Reporting Act)
If an employer utilizes a third party for some or all of their background check needs, the FCRA regulates the employer and the third party provider.
The FCRA is a federal law enacted in 1970 to regulate consumer reporting agencies (CRAs), that collect and compile consumer information into reports used by others. It also applies to users of reports, such as employers.

17. Top 10 Reasons for Employment Denial
FCRA (Fair Credit Reporting Act) Basics
Applicants must be notified about the report beforehand
Applicants must authorize the background check in writing and must understand what they are authorizing
If the employer takes action based on the report they must notify the applicant in two separate steps and make certain disclosures

18. Top 10 Reasons for Employment Denial
Adverse Action – denying employment based on the content of a consumer report
Pre-adverse Action – provide notice, a copy of the report, and summary of rights, the allow sufficient time for candidate to review the report and identify concerns or inaccuracies.
Adverse Action – withdrawal or denial of job offer.
Both must be provided in writing, verbal is not acceptable.

19. Top 10 Reasons for Employment Denial
Additional Adverse Action Notification Failures:.
Technically, the decision to deny employment cannot be made until after the candidate has a chance to review and potentially dispute the report contents.
If it appears the decision has been made too early, this will be considered a violation of the FCRA.

20. Top 10 Reasons for Employment Denial
Disqualification is not Job Related
Adverse Action decision should be based on an individualized assessment of the applicants record, job history, and efforts at rehabilitation.
Disqualifying records should be clearly job-relevant and the employer must show a clear business necessity to deny employment.

21. Top 10 Reasons for Employment Denial
Avoiding Discrimination Charges:
Conduct an individualized assessment that should include the following considerations:
Circumstances of the offense or conduct
The number of offense(s)
Age at the time of the offense(s)
Employment history before and after the offense(s)
Rehabilitation and/or education efforts
Employment or character references
Whether the candidate is bonded or bondable

22. Top 10 Reasons for Employment Denial
Avoiding Discrimination Charges:
Proceed with the Adverse Action decision and notification process when:
The records are deemed job relevant and consistent with business necessity
The individualized assessment does not change the fundamentals of job relevance and business consistency

23. Top 10 Reasons for Employment Denial
Other Tips for Avoiding Discrimination Charges:
Do utilize a background check protocol that is job relevant and consistent with business necessity.
Do not utilize a pass/fail chart or table.
If a candidate challenges something on the report, do not make a decision on that candidate until the dispute is resolved.

24. Questions? Alan Kinsey Vice President Inquirehire www.inquirehire.com
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25. Top 10 Reasons for Employment Denial