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.

New York City Issues Guidelines on Credit Restriction Regulation

New York City issues interpretative guidelines on their credit restriction law “Stop Credit Discrimination Employment Act”. New York City employers should review these guidelines :

NOTE: Portions of this guide will be subject to future rulemaking pursuant to the City Administrative Procedure Act, N.Y. City Charter § 1041 et seq.

The New York City Human Rights Law (hereinafter the “NYCHRL”) prohibits discrimination in employment, public accommodations, and housing. It also prohibits discriminatory harassment and bias-based policing by law enforcement.

The NYCHRL, pursuant to the 2005 Civil Rights Restoration Act, must be construed “independently from similar or identical provisions of New York state or federal statutes,” such that “similarly worded provisions of federal and state civil rights laws [are] a floor below which the City’s Human Rights law cannot fall, rather than a ceiling above which the local law cannot rise.”1

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:

Federal Trade Commission Industry Focus

During the NAPBS Mid-Year Regulatory Conference, Maneesha Mithal, from the Federal Trade Commission (FTC) spoke about its focus on data protection, and compliance with the Fair Credit Reporting Act (FCRA). The FTC will expect Consumer Reporting Agencies (CRAs) like Aurico, to maintain strict procedures for accuracy and adverse action re-investigation, and vetting end-user clients for the appropriate permissible purpose and data protection. 

New York City Council Passes a Bill Restricting Credit Checks For Employment Purposes

The New York City Council passed a bill on April 16, 2015 restricting employers from using credit reports for employment purposes. This bill amends the New York City Human Rights Law, making it unlawful for an employer to use an individual's consumer credit history in making employment decisions. The bill's protections extend beyond the hiring process to current employees by prohibiting employers from considering consumer credit history broadly with regard to "compensation, or the terms, conditions or privileges of employment."

New York City becomes the 12th State to pass a credit restriction bill, joining California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont, Washington, and the City of Chicago.

NEW MEXICO EXPANDING BAN THE BOX

The New Mexico Senate has proposed Bill 583 to expand the Ban the Box prohibition to private employer initial applications. After initial applications, there would be no constraints on asking questions about criminal history and doing criminal background checks.

New Mexico joins other states/cities that have initiated ban the box for all employers. Aurico recommends, as a best practice, to eliminate the criminal question from your job applications and ask about criminal history later in the hiring process.  

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.   

In December, 2014 the D.C. Council unanimously passed legislation that will prohibit an employer from drug-testing potential employees for marijuana before a conditional job offer has been made.

The bill, "Prohibition of Pre-Employment Marijuana Testing Emergency Act of 2014," was introduced by council member Vincent Orange (D-At Large) in March of 2014, and explicitly states that an employer cannot test a potential employee for marijuana use until after an offer for employment has been made. After an employee has been hired, however, they "must still adhere to the workplace policies set forth by their employer."

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.

Making a Connection: Correlation Between Recruitment Efficiency and Organizational Growth

It’s time to prepare for growth. We’re clearly seeing an uptick in employment. In October 2014, 214,000 jobs were created and unemployment edged down to 5.8%, reported the US Bureau of Labor Statistics,¹ while 69% of recruiters expect competition to increase in 2015. ²

“Demand for workers is increasing and we’re seeing HR professionals pivot from talent engagement to talent acquisition,” states Ben Goldberg, President of Aurico Reports, Inc. “Candidate engagement is burgeoning and recruiters want an incredibly positive candidate experience as part of their arsenal, so they don’t potentially risk losing great talent to the competition.”

The talent acquisition function now sits at the nexus of talent management, technology, and organizational success. Recruiters who place the right people in the right roles at the right time have a tremendous impact on overall business performance. HR personnel are looking to revamp their existing recruitment workflows to meet business objectives, because they know there is a direct correlation between recruitment efficiency and organizational expansion.

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