Webinar: “Why You Should Screen Your Workplace and How To Do It Lawfully"

Here is the link to the recorded webinar from yesterday: 

“Why You Should Screen Your Workplace and How To Do It Lawfully”, presented by Rod M. Fliegel, Co-Chair, Privacy and Background Checks Practice Group and Jennifer L. Mora, Shareholder, Employment & Labor Law Solutions Worldwide. 

Some of the topics covered:

•         Negligent hiring claims
•         Problems with doing it without a CRA
•         Complying with the FCRA
•         Ban the box and other state/local issues
•         How companies fail for not running background checks

SmartRecruiters Announces Talent Acquisition Platform Winter 2017 Product Release

SmartRecruiters, the Hiring Success Company, recently announced it's new product that is set to release in Winter 2017. This new product will allow for a partnership integration with Aurico to expand SmartRecruiters' background and drug testing capabilities.

Click here to read the full press release.  

Big Data

Another exciting move we witnessed in 2016 is the increase in use of “big data” to streamline hiring decisions as well as evaluate hiring trends, and is very useful to employers in many aspects.  “Big data is the process of examining large data sets containing a variety of data types -- i.e., big data -- to uncover hidden patterns, unknown correlations, market trends, customer preferences and other useful business information.

Big Data was recognized during a EEO panel by EEOC and The Chair of the EEOC, Jenny R. Yang said in a press release “Use of Big Data Has Implications for Equal Employment Opportunity” as having “the potential to drive innovations that reduce bias in employment decisions”.  Jenny also cautioned that Big Data tools “are designed to promote fairness and opportunity, so that reliance on these expanding sources of data does not create new barriers to opportunity”.  Aurico and CareerBuilder embrace the use of “Big Data” for driving innovations in all aspects of the hiring process, including predictive or talent analytics and to augment fair and unbiased decisions.

- Source: U.S. Equal Employment Opportunity Commission

Ban The Box (The Fair Chance Act)

THE FAIR CHANCE ACT
More cities and states added ban the box legislation also referred to “Fair Chance Act”.  The increased legislation for 2017 included Philadelphia, and Los Angeles, joining over 100 other areas of the country.

Some of these areas include: Austin, Texas, Baltimore, Maryland, Buffalo, New York, Chicago, Columbia City, Missouri, Connecticut, Hawaii, Illinois, Los Angeles, Massachusetts, Minnesota, Montgomery County, Maryland, Nebraska, New Jersey, New York City, Oregon, Portland, Oregon, Philadelphia, Prince George’s County, Maryland, Rhode Island, Rochester, NY, San Francisco, Seattle, Washington, Washington D.C., Washington State.  

This type of legislation at the very least requires employers to eliminate the “criminal questionnaire” from the initial job application, but typically allows an employer to ask the criminal question later in the recruiting process, after a first interview or after a contingent offer of employment. Because of the increase in the number of cities and states, most employers have eliminated the questionnaire from the job application and do ask the question later on in the process.

Aurico recommends that the question continue to be asked, and a good time to ask the question is after a contingent offer of employment and during the background screening stage.  An CRA like Aurico should be able to accommodate presenting the question on behalf of the employer through technology and at the same time the candidate is providing information for their background screen.

Why is it a good practice not to ask the criminal question prior to a conditional offer of employment?
The purpose of ban-the-box legislation is to delay background check inquiries until later in the hiring process, so that employers evaluate applicants based on their qualifications rather than automatically screening out former offenders. Every ban-the-box law includes provisions that allow employers to run a background check and make inquiries about criminal records in accordance with state laws.

Why should an employer continue to ask this question? 

• An employer has an obligation to provide a safe work environment for employees, and visitors
• Protection against Negligent Hiring
• Falsification and a candidate not answering the question honestly could still be a factor to consider when making hiring decisions

STUDY SHOWS BAN THE BOX MAY BE A HINDRANCE TO EMPLOYMENT
Although we anticipate an increase in Ban the Box legislation across the country in 2017, there are studies that show the Ban the Box movement may actually hinder an applicant’s chance in getting a job.  According to a study by the National Bureau of Economic Research they found that ban the box policies decrease the probability of young, low skilled African American and Hispanic men.  In addition, their findings support the hypothesis when an applicant’s criminal history is unavailable, employers statistically discriminate against demographic groups that are likely to have a criminal record.

4 LARGE EMPLOYERS SIGN ONTO THE FAIR CHANCE PLEDGE
Another movement related to Ban the Box was the Fair Chance Pledge Initiative.  In addition to the increase in cities and states passing ban the box legislation, the White House started an initiative with businesses to sign onto a “Fair Chance Business Pledge” President Obama’s goal for this initiative is “a nationwide call-to-action to accomplish the shared goal of creating a stronger set of opportunities for people who have been impacted by the criminal justice system.”  Some of the large employers who have committed their pledge to this initiative include American Airlines, Coca Cola, Pepsico and Walmart. In addition to the initial pledge, other initiatives companies may commit to are:

• Banning the Box by delaying criminal history questions until later in the hiring process;
• Training human resources staff on making fair decisions regarding applicants with criminal records;
• Ensuring internships and job training are available to individuals with criminal records;
• Using reliable background check providers to help ensure accuracy;
• Hosting a Fair Chance and Opportunity Job Fair

Aurico Named No. 2 on HRO Today Magazine’s 2016 Baker’s Dozen List of Top Background Screening Providers

Aurico, a CareerBuilder company, announced it has been named one of the nation’s top 13 employment screening providers on HRO (Human Resource Outsourcing) Today magazine’s 2016 Baker’s Dozen list. This recognition marks the fifth appearance on the list for Aurico.

“At Aurico, nothing is more important to us than our clients. It is extremely gratifying to get confirmation from them that we are not just meeting, but exceeding their background screening needs,” said Ben Goldberg, CEO of Aurico. “We strive to provide our clients with the best user experience and the most compliant and accurate service. Having our customers acknowledge our commitment to trust for employers and applicants is an honor.”

To achieve inclusion on the Baker’s Dozen list, companies that provide background checks are rated anonymously by their clients during an online survey process. HRO Today calculates the results using a statistical analysis and predetermined algorithm. The award is based on three categories: breadth of service, size of deal and quality of service.

NAPBS Volunteer of the Month

Congratulations and thanks to Laura Randazzo, the NAPBS Volunteer of the Month.

Volunteers play a vital role within NAPBS, working alongside staff members and other volunteers to jointly achieve the association's goals. Through our Volunteer Recognition Program, we highlight the contributions of our volunteer workforce.

Laura Randazzo, VP of Compliance with Aurico - a CareerBuilder company, has been selected as the December 2016 NAPBS Volunteer of the Month. Randazzo is currently serving on the BSCC, Finance and Advocacy Committees. Learn more about Randazzo in this interview.

Know someone in the NAPBS community who deserves special recognition for their dedicated volunteering efforts? Nominate your favorite volunteer as Volunteer of the Month. Nominees should have made a significant and outstanding contribution to the NAPBS community. Submit nominations to volunteer@napbs.com and provide the volunteer's name, company, details regarding their volunteer accomplishments, and why you think they should be recognized.

Aurico Webinar: Managing Changes to the Form I-9

Recently, the Office of Management and Budget (OMB) approved a revised Form I-9, Employment Eligibility Verification. U.S. Citizenship and Immigration Services (USCIS). By Jan. 22, 2017, employers must only use the new Form I-9 (on new employees.) To ensure compliance with USCIS, Aurico has made the new Form I-9 available for all clients and partners in the Customer Forms Library within the WebACE™ Platform.The old version of the Form I-9, which expired on March 31, 2016, may still be used until January 21, 2017.

Aurico hosted a Webinar on November 17, 2016 titled Managing Changes to the New Form I-9 to provide education on the Form I-9 process.  Aurico provides electronic I-9 and E-Verify products. The electronic I-9 product through Aurico will accommodate the new form I-9 on or before January 21, 2017.

President Obama Announces Ban the Box for Federal Government Employers

On November 3, 2015, President Obama announced an order to all Federal Government Employers to “Ban the Box” -remove the criminal question from the initial application process.  The criminal question may still be asked later in the process. As with most cities and states “Ban the Box” legislation and can be asked after a conditional job offer has been extended. 

This order impacts federal employers and not private employers; however, the President has encouraged all employers to “Ban the Box”.  Many cities, states and counties across the country have already passed legislation for private employers including:  Baltimore, Maryland; Buffalo, New York; Columbia City, Missouri; Hawaii; Illinois; Massachusetts; Minnesota; Montgomery County, Maryland; Nebraska; New Jersey; New York City, NY; Oregon ( 01-2016); Philadelphia, Pennsylvania;  Prince George’s County, Maryland; Rhode Island; Rochester, NY; San Francisco, California; Washington D.C.; and  Washington State

The White House says it is “encouraged” by such legislation in a new statement, but emphasizes the president’s order will take immediate action, mandating that the federal government’s HR department “delay inquiries into criminal history until later in the hiring process.”

Employer Considerations

Aurico recommends that employers review their job applications on a regular basis with their legal counsel along with a review of the updated criminal guidance regarding consideration of arrest and conviction records under Title VII of the Civil Rights Act of 1964.


NOTE: Aurico Reports Inc. is not a law firm. Nothing presented in this communication is intended or should be construed as legal advice. You should always seek the advice of your own legal counsel.

Dynamic Reporting Tool Analytics Drive Results

“As we work with customers to maintain regulatory compliance, the message always seems to revolve around reporting tools,” says Laura Randazzo, Vice President of Compliance with Aurico Reports, Inc. “HR professionals want evidence of EEOC individualized assessments, proof of adherence consistency with compliance policies, and global adverse action history. They want to be able to effectively report background screening metrics during the ultimate challenge from a regulatory agency’s audit.”

The capture of talent acquisition data is fundamental to talent acquisition performance and productivity. It is key to making hiring decisions that mitigate corporate risk and drive operational success. The five reporting tool essentials include:

Negligent Hiring Risk and Motor Vehicle Records

We frequently get calls to re-verify current employee motor vehicle records or driver’s history reports. We continue to see a growing trend for HR departments to add annual re-verification to their risk management strategy.

Since 23% of applicants have had serious motor vehicle violations due to drugs, alcohol or revoked licenses, we suggest that our clients complete motor vehicle records searches on prospective employees and annually with current employees. Without this search and annual re-verification program, companies can be left open to negligent hiring litigation risk.

Negligent hiring is a claim made by an injured party against an employer, based on the theory that the employer knew or should have known about the employee’s background, which would have indicated a dangerous or untrustworthy character. 

Background Screening a Minor: Should It Be Done?

According to the Bureau of Labor Statistics, almost 28.8% of young adults, 16-19 years of age, were employed in December 2014.1 In addition, The Bureau of Justice Statistics reported that there were approximately 1.3 million juvenile arrests in 2012 (39% involving youth younger than age 15).2 For these reasons, employers may have justification for developing and implementing a background screening program for minors.

There are a number of factors to consider when conducting background checks on minors seeking employment. As with all background screens for applicants or employees, the Fair Credit Reporting Act (FCRA) requires consent in conjunction with pre-employment screening for minors as well. Careful understanding of the nature of a minor’s consent is necessary for employers to be protected.

Compliance Update - Special Ban the Box Adverse Action Requirements Reminder

We want to remind our clients of special Adverse Action requirements for some of the recent cities/states that have passed "Ban the Box" ordinances. Please refer to the information below:

Chicago, IL - Requires the adverse action notice to include a reference to the specific items which form the basis of the criminal record decision. No pre-adverse action letter requirements.

Massachusetts - Requires (i) a copy of the Company’s Massachusetts Criminal Record Information Policy; (ii) the sources of any criminal history records provided to the Company (as reflected in the background report); and (iii) information from the Massachusetts Department of Criminal Justice Information Services (“DCJIS”) concerning the process for correcting a criminal record.

Montgomery County, MD - The pre-adverse action notice must include a reference to specific criminal items which form the basis of the decision; and then there is a minimum seven day waiting period before taking adverse action. Montgomery County, MD does not require that the final adverse action letter specifically enumerate the items forming the basis for the action.

New Minnesota Expungment Law Helps Protect Employers from Liability

Minnesota has joined a list of states that have either introduced or have passed laws that protect employers from negligent hiring and retention suits when hiring ex-offenders with expunged criminal records.  In addition to the protection from expunged records Minnesota included in their “Ban the Box” regulation a similar protection that an employee’s criminal record “may not be introduced as evidence in a civil action against a private employer” where “the action is based solely upon the employer’s compliance with the law (not asking about the criminal record on the application). These laws may not protect employers, however, if there is negligence for not performing a proper background check in order to ensure a safe work environment.    

The states of Georgia, Tennessee, and Alabama have similar laws.   

The Value of On-Going Screening Throughout the Employment Lifecycle

A new consideration in the background screening industry is whether employers should conduct ongoing or periodic background checks on their current workforce. Although a comprehensive background screen may have validated and confirmed a clear record on the way into an organization, something you may need to know may have occurred since that time.

While pre-employment screening refers to the process of investigating the background of a potential employee, post-employment screening refers to the investigation of an existing employee’s activity. Ongoing post-hire searches may be one way to demonstrate due diligence, support workplace safety, and even minimize exposure to risk.

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.

Perspective: Why #1 Matters in Background Screening

In today’s society, a company’s reputation can make or break its business. Ethically minded consumers, anti-globalists, and informed investors are not just concerned with whether a product or service is good; they also want to know how any company they partner with is publicly perceived. It is for this reason that it is increasingly crucial to do business with a reputable background screening company.

There are perhaps hundreds of vendors that provide background screening services. Industry wide, there is significant volatility, with most producing less than $500,000 in revenue. Among larger vendors, ranks are shrinking through mergers and acquisitions. Massive global players easily process millions of transactions each year, while full-service vendors emphasize their broad spectrum of services and customized solutions. No matter what an employer’s needs, the right fit can be found.

Things You Should Know About Federal Criminal Searches

Things You Should Know About Federal Criminal Searches

In this country, there is widespread agreement that occupational fraud (employee theft) is big business and that it has reached epidemic proportions. Trusted employees from all walks of life, from all income ranges, and in every business, discover creative ways to make their job more rewarding.

A majority of employers agree that the most prudent measure is to screen potential employees for characteristics associated with theft activity before hiring them and, to take preventive steps after the hire, by establishing and implementing sound internal controls.

“Recruiters and managers must be able to trust their new hire decisions,” says Laura Randazzo, Vice President of Compliance at Aurico Reports, Inc. “The reality is that our customers have no problem justifying the use of criminal background checks as part of their selection process in order to mitigate the risk of selecting the wrong person for the job.”

Equally important, but sometimes overlooked, is the federal criminal search. It is this kind of search that will reveal candidates with convictions for crimes typically identified by the FBI as “white collar” crime (embezzlement, fraud, crimes with monetary value greater than $75,000, interstate violations). Federal crimes do not show up in county, state, or national searches. Federal records are housed separately and the only way to find federal criminal activity is to do a federal search.

Federal Trade Commission Issues Guide on Background Checks

The Federal Trade Commission (FTC) recently released a guide, “Background Checks: Tips for Job Applicants and Employees,” that provides answers for questions people may have about background checks. It further expands upon the information provided in an earlier brochure the FTC released in March 2014, “Background Checks: What Job Applicants and Employees Should Know”. The FTC continues to show interest in the policies and authority of background checks. The guide lays out the steps involved in the background check process and specifies the rights of applicants and employees under the Fair Credit Reporting Act (FCRA), along with providing information about anti-discrimination laws when employers perform background checks. A copy of the guide may be downloaded from: 

http://www.consumer.ftc.gov/articles/pdf-0044-background-checks.pdf

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.

Analyzing ROI on Your Background Screening Program

Some organizations conduct pre-employment background checks as a contractual or regulatory obligation. Other corporations judge pre-employment screening as a collateral expense. Executive leadership may acknowledge their legal responsibility to mitigate risk, but they’re quick to point out it represents a significant investment in time and money.

Any company can quickly start to question if background screening is really worth it. How much actual dollar value does a background screening program deliver?

• The typical organization loses 5% of revenue each year to fraud. It takes time and effort to recover the money stolen by perpetrators, and many organizations are never able to fully do so. 58% of victim organizations never recover any of their losses due to fraud, and only 14% make a full recovery.¹
• The cost of replacing an experienced worker who doesn’t work out can cost 50% or more of that individual’s salary, and these costs go up if the employee has specialized skills.²
• Employers lose 72% of negligent hiring cases, with an average settlement of $1.6 million.3

Traditionally, the Human Resources department has been primarily administrative, and HR experts have worked as employee advocates. HR’s role in today’s corporate supply chain has shifted significantly, moving away from providing services and support on a reactive basis, toward offering intrinsic value as a strategic business partner. Executive leaders have opened their eyes and minds to the importance HR plays in driving productivity and improving business performance.