Tag: FCRA

Pre-employment Background Checks And Facebook Have Companies Gone Too Far

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One of the most important laws about background checks is the Fair Credit Reporting act, or FCRA. According to this legislation, employers must tell applicants if they will be carrying out pre-employment background screening. A company could face expensive litigation and fines if they fail to follow the letter of the law regarding drug testing, credit reporting, and professionalism when doing background checks. Increasingly, however, social media is becoming a contentious area in pre-employment background screening. The vast majority – 91%, according to Reppler’s 2011 survey of 300 hiring professionals – of companies have researched social media profiles while conducting background checks.

A range of viewpoints exists on this issue. Many applicants purposely tailor their social media profiles for potential employers. These pro-social media types would argue that a modern job search is incomplete without social media networking. Yet on the other hand, many say that companies have gone too far with social media pre-employment background screening, for instance by asking each interviewee for his or her Facebook password. (A password would be required to view profiles for those whose pages are only visible to friends.)

Until recently, those in the public sector were most commonly asked for Facebook passwords in pre-employment background screening. Cops, teachers, and doctors are used to this sort of thing during in-depth background checks. NPR tells of one instance when a Maryland corrections officer was asked to provide his Facebook access during a pre-employment background check. Apparently, the state hiring agency wanted to make sure that this individual had no gang connections. Nowadays, however increasing number of private companies are also requesting social media login data.

At the moment, this form of pre-employment background check is legal across the country, but the Maryland, Michigan, Illinois, and California state legislatures are working on legislation that could ban it, under the argument that social media profile discrimination should be illegal, just like it’s illegal to discriminate against a female applicant because she implies she would like to have children in the next couple of years.

Watch legislative news and court proceedings over the next few years to see where legal boundaries are drawn regarding social media background checks, discrimination, and privacy rights. Until then, protect your company’s reputation and bottom line by following these pre-employment background screening tips:

1. Remember that courts can mandate that you explain the reasoning behind your hiring practices. The threat here is that you could be sued by a rejected applicant. If so, you’ll have to testify in court as to why you chose not to hire this person. Don’t select or reject employees based on parental status, race, age, or sexual orientation – that way your decision will stand up in court. It seems obvious, but it’s still good to remember: Hire people based on their abilities and the position’s requisite skills.

2. Follow FCRA guidelines. Those who carry out pre-employment background screening in-house should have their background check procedure reviewed by an attorney, to make sure it is kosher.

3. Ask third-party pre-employment background check companies to only tell you information related to the job itself. Likewise, in-house specialists in background checks should only tell you data that is relevant to the position at hand.

4. Beware of “Quick Fixes” for background checks. Smartphone apps and other “immediate” pre-employment background screening programs are rarely in complete compliance with employment laws.

Benefits Of Hiring A 3rd Party Background Check Company

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Pre-employment background checks are more than just a way of avoiding bad hires; they’re also corporations’ best bet for beating negligence court cases. This article reviews why more and more corporations are hiring third party employee background check companies, rather than conducting background checks in-house. Read on to discover the benefits corporations enjoy by outsourcing their employment background checks.

1. Increased applicant privacy.

If an internal employee does your employee background checks, workplace drama can ensue. New hires will be less likely to trust their co-workers charged with employment background screening duties. Third party background checks go a long way in preventing mistrust and gossip. Moreover, they show applicants and employees that you are dedicated to even-handed, fair treatment.

2. Less chance for expensive mistakes.

Did you know that some states require employees to provide applicants with a copy of their employment background screening, even if it’s not specifically requested? Or that it’s illegal to base a hiring decision on court cases that did not result in convictions? Your company could be sued if you fail to follow the letter of the law as far as employee background checks are concerned. Yet few HR managers have the time or legal expertise to avoid all potential background check lawsuits. For this reason, increasing numbers of companies are outsourcing their employment background screening to vendors who have spent decades focused on these issues. Doing so typically results in fewer costly hiring mistakes.

3. Legal protection.

Beyond preventing legal mistakes, outsourcing background screening also grants companies exemption from lawsuits. The federal Fair Credit Reporting Act (FCRA) promises legal immunity for companies that choose to outsource their employment background checks. In other words, your company can avoid lawsuits citing hiring negligence, privacy invasion, and defamation if you outsource your background procedures.

Still, it’s notable that the FCRA still requires companies to notify candidates if they are investigating credit history. Therefore, it’s smart to ask your employee background screening vendor whether they offer forms for applicant notification.

4. Decreased costs.

It would likely take a full-time employee months to research how to legally, respectfully, thoroughly carry out employment background checks. Then, it might take them another few months to locate the investigative resources needed to methodically do employment background screening.

In contrast, third-party, professional background check companies have already developed the understanding and resources needed to effectively run employment background checks, so they can typically deliver the same (or improved) results at a lower cost.

5. More meticulous background checks.

Because professional background check companies specialize in labor investigations, they usually have excellent sources for examining individuals’ history. Having spent hundreds of hours perfecting their screening approach, professional background check companies can typically deliver more thorough investigations than can be achieved in-house.

6. Improved service.

Because they are investigative experts, background check companies offer extra features for their clients, such as adverse action letters. The law states that if you choose not to hire someone based on characteristics such as credit history, you must inform his or her in writing about your decision. An adverse action letter fulfills this duty. Many employment background vendors offer complimentary adverse action letters as part of their employee screening service, saving you time.

There are many reasons for outsourcing your employee background screening process, from lowered costs to improved legal immunity.