Archives for October 2015

In recent years, it has become commonplace for employers to review the personal credit histories of job applicants before making hiring decisions. In fact, almost half of employers run credit checks when considering prospective workers, according to a survey of human resources managers.

New York City recently enacted a law prohibiting employers from checking credit histories except in limited situations. Is this movement to limit credit checks likely to spread, and what are the ramifications?

Why do employers check credit histories?

Opponents of employment credit checks are holding up the New York City law as an example that other cities and states should follow. However, the federal Fair Credit Reporting Act (FCRA) allows employers to check the credit of applicants.

Employers often use credit reports to judge an applicant’s financial stability and sense of responsibility. About Careers notes that a number of items on a credit report can trigger red flags for hiring:

• High credit utilization or recently incurred late fees may be viewed by an employer as an inability to follow a budget.
• Liens, bankruptcies or foreclosures may be viewed as signs of irresponsibility. Employers also may infer that employment candidates don’t think about the long term.
• Opening or closing new accounts may appear as a sign of financial desperation.

What are the arguments against employer credit checks?

Federal law requires employers to receive permission from an applicant before performing a credit check. But opponents of the practice argue that most individuals are unlikely to refuse the request of a potential employer regardless of how the results may impact job prospects.

The reliability of credit checks as a predictor of job performance also is subject to debate. A 2012 study published in The Psychology-Manager Journal found that information pulled from applicants’ credit reports showed no relationship to termination decisions or ratings in performance appraisals. In addition, some consumer advocacy groups have argued that credit checks lead to discriminatory hiring because they disproportionately screen out minorities.

Employment credit checks: On the way out?

New York City’s new restrictions on employer credit checks are among the toughest in the country, experts note. But the city is not alone in acting to restrict credit checks by employers except in cases mandated by federal law. Currently, 11 states limit access to applicant credit information, and efforts are afoot in Congress to prohibit the practice. Employers who currently use credit checks to evaluate prospects should remain vigilant to possible changes at both the state and federal levels.

Disclaimer: The information on InstantCriminalChecks.com is governed by our Terms of Use and is never intended as legal advice.

As a business owner it is your responsibility to not only protect your customers from abusive or violent employees, but also the people who work for you to make your business great. Vetting potential employees and discovering the truth of criminal histories isn’t always as simple as it sounds due to the many local, state, and federal laws. These laws are designed for the noble purpose of giving some non-violent criminals a second chance.

In fact, conducting improper criminal background screenings or using the information received in an improper manner can be costly. First, by exposing your business to lawsuits and second with the threat of government action – including fees and fines.

But, what can businesses do to protect themselves from the risks associated with criminal background screenings while still providing the protections customers and employees deserve?

Know the Law

It’s always wise to study the latest local, state, and federal laws related to hiring practices. It’s simply good business. For the purpose of background checks, it’s important to know what kinds of criminal background screenings you can conduct and how the information obtained may be used for hiring purposes. This includes criminal histories, employment histories, and credit reports.

Purchase Employment Practices Liability Insurance Coverage

No matter how careful you are to walk the fine line regarding hiring practices, no one wants to face a negligent hiring lawsuit, warranted or not, without this invaluable insurance coverage. It protects your business even if the suit is determined to have no merit and will help you pay legal defense costs up to the covered amount. In the event you are found to be guilty and a judgment is awarded, the insurance should pay some or all of the claim – again up to the covered amount.

Hire an Agency that Specializes in Criminal Background Screenings in Your State

While you’re ultimately responsible for your hiring decisions, working with a reputable organization that provides criminal background screenings can help you rest easier with the choices you’ve made.

Criminal background checks play important roles in helping employers protect the people who buy their goods and services as well as the people who work for them. While there is some risk involved, these quick tips help to limit the risks while maximizing the potential rewards.

Disclaimer: The information on InstantCriminalChecks.com is governed by our Terms of Use and is never intended as legal advice.

While some employers scan applicants’ social media presence as a natural part of their screening process, many states are now enacting laws to protect applicants from discrimination based upon their personal postings. Employers must be vigilant in order to avoid potential legal problems down the road from conducting social media screening.

The Society for Human Resource Management (SHRM) reports that 77 percent of its members used social media to recruit and select employees in 2013, up substantially from past years. On the face of it, social media seems to be an ideal tool for job applicant screening. However, it’s not quite that simple; while using social media to recruit candidates is generally acceptable, conducting background checks based on social media can lead to some risks and hazards.

Here are four ways to maximize the benefits of social media screening while minimizing the risks:

1. Stay Diversified

Believe it or not, there are people who are not very active on social media, and this includes job seekers. Those who are economically disadvantaged may have limited access to technology, and this can extend to certain minority groups. The best bet for employers is to diversify recruiting methods and use social media as just one of an arsenal of tools. This could include a professional criminal background check as part of employment screening with applicant permission.

2. Be Consistent

If you are going to look at social media profiles as part of your screening process, attempt to do so for every applicant. Don’t just look at and consider select applicants’ profiles; doing so could leave you vulnerable to a discrimination suit if you decide not to hire based upon what you find.

3. Consider Context and Source

When assessing social media as part of the hiring process, focus on the candidate’s own postings, not on responses or hearsay from other users. Be aware that there can be false or impostor accounts on social media, and users are not always who they say they are. Give the candidate the opportunity to respond to and defend themselves against negative findings.

4. Document Your Findings, Thought Process and Decisions

Print the social media screening page(s) upon which you’ll be basing a hiring decision and take notes about your specific reasons for rejection. This documentation will help to protect you in the event that the content is deleted during a challenge or suit.

Using social media screening as part of background screening is valuable, but it must be done intelligently. Augment any social media screening with a professional background check for a comprehensive assessment of each candidate.

Disclaimer: The information on InstantCriminalChecks.com is governed by our Terms of Use and is never intended as legal advice.