Celebrating 40 Years of Compliance Leadership
January 29, 2020
4
min read
On November 18, 2019, the Equal Employment Opportunity Commission (EEOC) announced in a press release that it settled a race discrimination lawsuit with a nationwide retailer that challenged the employer’s use of criminal history for employment purposes. The hiring process can vary by employer and industry, so it’s vital that employers determine what is needed for their background check program.
In this particular case, the EEOC claimed that the employer’s use of a criminal history check resulted in a disparate impact against minority workers. As a result, the EEOC required the employer to pay $6 million and hire a criminologist if they continue to consider using criminal history checks as part of their pre-employment process. To avoid lawsuits and fines, employers can work proactively to ensure that their current background check policy is up-to-date.
A criminal history check is one of many background check solutions that employers can use to help them determine a safe hire. This type of check reveals detailed information about an individual’s county, state, and/or federal criminal history. Each record will vary by the type of information that is searched for and the results that it returns. By providing an employer with the knowledge of an applicant’s criminal history, they can better understand if they would make a good fit for the company. Criminal history checks benefit employers by:
Reducing risk
Protecting an organization’s assets and reputation
Reducing incidents on the job
Preventing lawsuits, fines, and fees
Employers should follow these best practices when conducting criminal history checks for their place of business to further protect their company from potential risks and fines.
Creating and implementing a clear and concise written background check policy.
Know and understand the laws regarding the use of criminal history information and train managers, HR officials, etc., accordingly.
Eliminate policies or practices that would exclude someone from employment based on a bright-line rule (any criminal record or felony).
Maintain confidentiality when handling an applicant’s or employee’s criminal history information and only use it for the purpose for which it was intended.
Following the rules set forth by the Fair Credit Reporting Act (FCRA).
In addition, employers must also abide by the rules of the Fair Credit Reporting Act (FCRA) when running background checks. In order to be compliant, the FCRA requires that an employer meet the following:
Permissible Purpose - An approved reason under the FCRA to conduct a background investigation (e.g., credit, employment, tenant screening, insurance, government license, child support enforcement, or court order)
Disclosure – Before ordering a background check, employers must provide disclosure in a clear and conspicuous written document.
Authorization – The employer must obtain written authorization from the candidate, consenting to perform a background check.
Adverse Action – Employers must follow the adverse action process before denying employment based on the background report.
Despite it being the law, many companies fail to send adverse action notices. It’s important that your HR and compliance department remain up-to-date on all hiring requirements and procedures to avoid violations and/or lawsuits.
DISA offers a variety of background check solutions to enhance your employment screening process. When creating a background check program, it’s important for employers to understand exactly what is needed for the positions they are hiring for, as well as any industry-specific requirements. DISA’s unique service offerings include customized product packages, individual products, online ordering, automatic renewal notices, and applicant entry to help you create a customized program to fit your needs.
When ordering a background check, it can be done “a la carte” or through a package customized to meet your specific needs. Our products include:
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DISA Global Solutions aims to provide accurate and informative content for educational purposes only and does not constitute legal advice. The reader retains full responsibility for the use of the information contained herein. Always consult with a professional or legal expert.
