Tuesday, October 28, 2014

Consistent Hiring Practices for Temps, Contingents, and Contractors

We have finally reached a day and age when HR professionals understand why pre- and post- employment background screening is mission critical. Nine out of ten employers run criminal background screens on applicants as part of their hiring process.1 Companies of all sizes follow this practice for a variety of reasons. Background checks are conducted to prevent theft, comply with laws, reduce legal liability for negligent hiring, ensure a safe work environment for employees, and assess the overall trustworthiness of an applicant.

However, the dynamics of the workforce have changed drastically in the last few years. Nearly 26% of the average workforce is now contingent, temporary, or contract labor.2 By 2020, it is estimated that 40% of US workers will be in contingent positions.3 Many companies are filling positions, that were once identified as full-time and permanent, with some kind of contracted labor. Companies believe that this kind of labor is an attractive option for them because of its short term productivity with no long term commitment. Perhaps this practice is even becoming the new norm.

From the Blooper Book

Each month, Aurico brings you highlights from the best candidates, the brightest candidates, and these candidates, leaving us all to think “Well, that’s ONE way to fill out a résumé”

He’s working up the courage to ask out the Spreadsheet Queen:

Job Title: “Homecoming King”

I notice the details, I just don’t correct them when they’re wrong:

Please list any special skills you may have which would be helpful in considering your employment: “Ecxellent attention to detail.”

Is this the San Francisco campus, or the satellite branch near Jupiter?

San Francisco Compliance Update Reminder

We want to remind San Francisco based employers that the San Francisco “Ban the Box” went into effect on August 18th.  This regulation in addition to when an employer can inquire about past criminal records also requires the employer to perform an individualized assessment, and post and distribute notices.   The required notices are attached to this compliance update. 

Other important sections from this ordinance that impact employers:

SEC. 4905. NOTICE AND POSTING REQUIREMENTS FOR EMPLOYERS

The SEC is seeking payments from companies for Whistle Blower (Dodd-Frank Act) violations

On September 22, 2014, the Securities and Exchange Commission's (SEC) Office of the Whistleblower announced that it had issued a $30 million bounty payment to a foreign whistleblower.  Another payout separate than this, but recent was $300,000 payment to a whistleblower who worked as compliance professional.

Aurico recommends employers review their current whistleblower policies to assure they are up to date with regards to these recent violations with a focus on anti-retaliation.  Employers should also review their systems and tracking for issues to resolution.  Employers should also review their code of conduct.  Aurico recommends that you work with your legal counsel on any policy review.

Bills Seek To Dull EEOC Activities

Rep. Tim Walberg (R-MI), Chairman of the House Subcommittee on Workforce Protections, introduced two bills on September 10 aimed at curbing the Equal Employment Opportunity Commission's authority.

The first measure, the Litigation Oversight Act of 2014 ( H.R. 5422), would require the EEOC to approve, by majority vote, all lawsuits or interventions in lawsuits involving multiple plaintiffs or an allegation of systemic discrimination or a pattern or practice of discrimination. The new legislation would make it more difficult for the EEOC to pursue this initiative, although it is not expected to advance.

The second measure, the Certainty in Enforcement Act of 2014 ( H.R. 5423), takes aim at the EEOC's updated 2012 enforcement guidance on criminal background checks. Many in the business community have faulted the EEOC's stance regarding an employer's consideration of an applicant's criminal record in making hiring decisions. 

Federal Trade Commission (FTC) Action Halts Online High School Diploma Mill That Made $11 Million Selling Worthless Diplomas to Students

At the Federal Trade Commission's request, a U.S. district court in Florida has temporarily halted a diploma mill that allegedly grossed more than $11 million from marketing and selling fake high school diplomas online to consumers nationwide. The FTC's lawsuit seeks a permanent injunction to stop the deceptive practices and to return ill-gotten gains to consumers.

The complaint alleges that the defendants violated the FTC Act by misrepresenting that the diplomas were valid high school equivalency credentials and that the online schools were accredited. The FTC says the defendants actually fabricated an accrediting body to give legitimacy to the diploma mill operation.

Aurico reminds employers when obtaining high school diplomas from a candidate further scrutiny may be required.  Aurico through the “Aurico Audit” does review high school legitimacy and compares high schools against a list of diploma mills.