Background Screening Legal Compliance In The US – A Complete Guide

Compliance is one of the most important aspects of employee background checks in the US. Regardless of how good your background screening vendor is, if they don’t comply with all the laws and regulations you, as an employer, might be in serious trouble.

For example, did you know that :

• There is a law in the US that enables background screening records to be preserved and referred to for a maximum duration of 7 years (in general) and 10 years in case of bankruptcies. Once this period is over, the record will not be valid and any adverse action taken based on such records will be illegal.
• There are certain restrictions when it comes to screening information pertaining to issues of sex, race, disability, religion or age. For example; you cannot ask for background information from candidates of a specific race solely because they are from that race.
• In California, you cannot request criminal record checks of the candidate before a job offer is made unless you are from an industry that makes contact with vulnerable population?

Generally speaking, most of the background screening vendors understand the importance of adhering to all the background screening compliance norms. They take all the necessary steps to ensure that all the state and federal laws are followed. But there are times when organizations, unintentionally violate state and/or federal laws due to the fact that they do not fully understand specific regulations.

Hundreds of cases have been filed against employers for alleged non-compliance in background screening. The most common non-compliance examples include: an employer’s failure to provide proper disclosure, authorization and follow the adverse process mandatory under FCRA guidelines. Apart from FCRA, there are various other compliance norms in the US that need to be followed by background check agencies. These include I9 compliance, FTC, state and city Ban the Box laws and the new EEOC guidelines.

In today’s ever changing and litigious environment, even the HR departments with the best intentions find it difficult to keep up with these laws and restrictions governing pre-employment practices, hiring and background screening. Employers and recruiters in organizations of all sizes are still unaware about the numerous regulations that govern pre-employment screening. They think that these regulations don’t apply to their specific situation. But understanding these laws and rules has become quite a prerequisite for conducting background checks.

In this guide, we have discussed all the relevant rules and laws governing pre-employment background screening process in detail. This will assist you and your organization in avoiding any legal trouble due to non-compliance of these laws while conducting background screening of your employees.

In this e-book we discuss:

• List of compliance laws and acts applicable in the US
• Most prevalent background screening compliance laws and regulations followed in the US
• Recent developments in the background screening compliance norms in the US
• Importance of selecting a background screening vendor that is regulatory compliant.

Note:-  This article as originally published on – https://www.cfirstcorp.com/background-screening-legal-compliance-us-complete-guide/

Conducting Background Checks: Before or After Making a Job Offer?

Imagine a scenario: You have conducted an interview for a vacant position and found the candidate a great fit for the role. It is your gut feeling that this candidate will perform well in the organization. But, the thing about gut feelings is that they can sometimes go horribly wrong. There are various stories circulating in the recruiting domain about negligent hiring claims, litigation and lost business due to the hiring of a wrong employee or an employee with a troubled past. This makes it very important to conduct background checks on the candidates you hire.

But even if you decide to conduct background checks but get your timing wrong, there is a high chance that you will either waste lot of money (if you conduct checks too early in the process) on unnecessary checks or the candidate will go to another organization (if you conduct checks too late or if the background check process takes too long). In this blog we will discuss the right time to conduct background checks during the hiring process.

Timing is everything when it comes to hiring a top talent

It has been observed that most of the candidates in today’s market get circumspect when they do not hear back after the interview. This makes them move to the next best organization for an interview. The problem is that even though hiring managers stick to their hiring and screening protocols, there is every chance of missing out on a great talent.

There are two ways hiring managers can tackle the situation:

1.Make a job offer before conducting a background checks

2. Make a job offer after conducting background checks

Let us look at each of these scenarios and understand the role of hiring manager:

1. Make a Job Offer Before Conducting Background Check

If the hiring manager makes a job offer to the candidate before conducting the background check, there is a probability of selecting a wrong candidate for the position. It can have an adverse effect on the organization resulting in safety issues while dealing with customers, lack of result oriented output by the candidate selected and occurrence of theft and violence in the workplace.

2. Make a job offer after conducting background checks

If the hiring managers wait till the completion of the screening process and then extend the job offer to the candidate, it can result in the candidate losing interest in the job and going to another organization. Screening process can sometimes get delayed due to various factors. That is why waiting till the screening process is completed can be risky

So if problem can arise in both the cases, when should you conduct background screening?

The Best Time to Fit in Background Checks in the Hiring Process

There are different times when conducting a background check can give best results and this is totally dependent on an organization’s requirement and processes.

Request the candidate to fill out an application and a separate document when they submit their resume and take their permission to run the screening.

If you are going to conduct more than one round of interview during the hiring process, start the screening before inviting the candidate for the final round of interviews.

When you are going to conduct only a single interview, inform the candidate that the job offer is provisional and dependent on the results of the background check. It is also important to get a written consent from the candidate in the form of a separate document apart from the job application.

Legal Implications of Carrying Out Background Checks on 

Candidates

Different countries have different laws that take into account the time when an employer can extend a job offer or perform a background check on the candidate. Ban the Box Laws in several US cities and states makes it compulsory for employers to make a conditional offer of employment before conducting the background check on candidates.

These laws also specify whether or not they can be applicable to private and / or public employers. If there is a highly sensitive job in these organizations, employers can conduct background check before giving the job offer to the candidate.

Conclusion

In case, if you feel it is too expensive to conduct background checks on all the candidates interviewed, wait until the final interview round and then start the screening process. This will give you enough time to get the screening results of the candidate thereby in all probability you will be able to extend the job offer immediately to the candidate once the interview process gets over.

Note:- This article was originally published on – https://www.cfirstcorp.com/conducting-background-checks-before-or-after-making-a-job-offer/

Leading Background Check Companies in The US

There is a saying that one bad fish can make the entire pond dirty. The same way one bad hire can make you pay a lot. If you are not alert while hiring the new employee it can have a very bad impact on the overall organization. A bad hire results in huge expenditure that goes in when you provide training and resources to the new employee. This is where pre-employment background check comes into the picture. 

Although, background screening can be somewhat expensive, but if done correctly, it can turn out to be a good investment in the long run. This reason makes it important for every organization to avail the services from a reputable and dependable background check vendor to get the best results. 

To help you achieve this endeavor, we have highlighted some leading background check companies in the US.

1. Intelius

It is one of the best background check companies in the US that provides comprehensive and precise details in the form of a report that is very easy to read. Although the cost of conducting background check through Intelius can be twice as from any other company, it has garnered a reputation of providing the most up to date details about a person. 

2. Been Verified

This background check company is known to provide precise reports on tax lien, court judgment reports and bankruptcy. It provides a vast amount of information pertaining to a person which makes it as a part of this list of leading background check companies in the US. One big advantage with this company is that they provide the services at an affordable price to its clients.

3. PeopleFinders

The background check reports generated by this company are very easy to read due to the fact that they include descriptions in each and every section. It is highly effective in carrying out criminal background checks, but when it comes to search civil judgments and other information, the information provided in the report is not sufficient.     

4. People Smart

This company is known to include a wide array of information in their background screening report. It provides precise information on bankruptcy and criminal history of the person. 

5. cFirst

cFirst is another well known background check company that has 10+ years of experience in the background verification industry. It is ISO 27001:2013 certified, NABPS, NASSCOM NSR empaneled and accredited by ACBCB, IAF and QIC. It has 2 million + background checks conducted till date and consists of multiple offices in India. 

The organization has some of the world’s largest IT companies part of their clientele. It has been awarded by one of the world’s largest companies as their “Trusted Verification Partner”.

6. Instant Checkmate

The background screening report provided by this company is very easy to read. But the problem with this company is they do not provide a complete criminal history of a person until you pay an extra price. You need to sign up for a monthly subscription to avail the full service, which can be an expensive affair. Even if you want to get bankruptcy or court judgment information pertaining to a person, you are required to pay extra for it. 

7. eVerify

The background check reports provided by this company are well organized and very easy to read. It provides highly precise criminal history information pertaining to a person. 

Conclusion

Hiring an employee is one of the crucial decisions for the growth of an organization. So, verify all the details of the candidate before hiring them so that you select the best candidate that is suitable for the job. Although we have included only seven background screening companies there are more in the US, but these are some of the best companies providing background check services.

Leading Background Check Companies in India and USA

When we speak about background check companies the very first question that comes in the mind is what is the exact need for them? As the name suggests background check companies assist in bringing out the correct background information of a person. This includes everything about the person like employment check, educational check, reference check, record check, address check, criminal record check, drug testing, etc. With the help of a good background check company, you can find out every possible details about the person.

Background check services are mostly used by organizations who are looking to hire new employees. By conducting these services, they get to know the precise background history of the candidate, which makes it easier for them to take the right decision. Remember, in an organization you do not hire a candidate with a dubious background as you want your organization to be a safe place to work.

To help you make the smart decision of selecting the right background check company, we have highlighted leading background check companies in India.

1. KPMG

It is considered to be one of the best background verification companies in India. The organization has more than 4800 working professionals and has its presence

across India. The greatest advantage of this organization is that they cover almost all sectors of the market.

The organization has won several awards in the past, including :

• Business work has placed KPMG amongst the 50 Best Places to Launch a Career in 2009
• The World's Best Outsourcing Advisers Award in 2011

2. cFirst

cFirst is another well known background check company that has 10+ years of experience in the background verification industry. It is ISO 27001:2013 certified, NABPS, NASSCOM NSR empaneled and accredited by ACBCB, IAF and QIC. It has 2 million + background checks conducted till date and consists of multiple offices in India.

The organization has some of the world's largest IT companies part of their clientele. It has been awarded by one of the world's largest companies as their "Trusted Verification Partner".

3. Auth Bridge

It is another prominent name in the field of background verification. The organization has more than a decade of experience and has more than 400 clients globally. It has conducted 10 million background checks till date.

4. First Advantage India

It is the Indian subsidiary of the leading global background screening provider First Advantage. First Advantage provides almost a dozen different background screening and verification services for companies in 200+ countries across a dozen odd industry verticals.

In India, FADV provides limited services for international candidate screening.

5. Secur Credentials

This is another leading Indian Background verification company with service capability across India. Secur Credentials is also the first Indian publicly listed BGV company.

6. Securitas

It is a recognized background screening organization that has more than 20,000 employees working. It has an excellent team of professionals that contain adequate knowledge in the background check domain. The organization specializes in serving mid and large size organizations.

7. Veri Facts

This background check company provides its services to a wide array of global companies. It has competitive staff working under it that provides above par background check services to its clients.

Conclusion

Apart from the eight companies mentioned in this article, there are other companies too in India. But, in this article, we have limited ourselves by only providing information about the leading background check companies in India.

Vivek Asrani is a content specialist at cFIRST Background Checks, a leading service provider of Criminal Background Check. Vivek writes about the various aspects of recruitment technology.

7 US Background Screening Trends to Watch out for in the Year 2018

2018 has just started and it is important to begin this new year by looking at some background screening trends that are going to be more prominent in this year. There have been lots of changes in the employment and recruiting industry in the last year. The legal rights to protect those who seek work, including those who are currently working or working independently as a consultant, seems to be on the rise. Thus, it is imperative for HR professionals to be mindful about the hiring and screening processes that prevents discrimination or negligent hiring.

Keeping these new legislation and developments in mind, we have highlighted some trends that are going to affect the background screening industry in the year 2018.

1. More generation Y candidates in the workforce will make the background screening more applicant friendly

Year 2018 will see the younger generation of workers, generation Y becoming the center of attraction for background screening providers. Recruiters will have to think creatively to expand their reach; and access better talent through new platforms like social media, chat bots, texting, etc. This would have a great effect on the entire process of background screening. We will see the demand for digital in receiving background screening reports to only increase in the year 2018, thus reducing the time between hiring employees and making them start working.

The companies asking to conduct the background screening process will also have to get more sophisticated about the type of screening they use in the year 2018, otherwise they will be subject to the risk of being exposed to legal consequences. A prime example of this is social media screening, which provides a different dimension of the candidate. But, rejecting a candidate on the basis of the content on social media is still a gray area, which results in companies facing discrimination lawsuits or other types of laws such as violations of privacy rights.

Thus, the most important thing that background screening providers need to do in the year 2018 is to make Generation Y candidates aware that the privacy, security and confidentiality of their personal information will be protected; thereby creating an environment of trust.

2. Background screening for on-demand workers will become more common

The gig economy in the USA has increased considerably in the recent past. Earlier, companies were conducting:

• Non-traditional methods to screen and select non-traditional workers
• Comprehensive background screening for full-time workers
• A less common background screening for part-timers
• Virtually non-existent background screening for contract employees

But in the year 2018, businesses will increasingly come to terms with the importance of conducting background screening for freelancers on their teams. With an ever-increasing growth of freelancer in the year 2018, employers will be prompted to conduct full-fledged background screening on contract workers. These checks can include anything from criminal history checks to education check. Hence, the background screening process will only get more comprehensive as the gig economy continues to grow.

3. Questions pertaining to criminal history on job applications will perish

As of January 2018, 30 states and more than 150 cities and counties in the USA have passed “Ban the Box” laws that remove questions about criminal history from job applications. It delays such inquiries until later in the hiring process. The entire objective of these laws is to reduce employment discrimination against ex-criminal offenders. While most employers in the past have asked criminal history questions in job applications, this process will have to be curtailed in the year 2018.

It is only a matter of time before ban the box becomes a rule amongst countries rather than an exception. Hence, companies need to be careful in the year 2018; and avoid asking questions pertaining to criminal history on job applications. In the year 2018, expect background screening companies to curb their natural instincts of running criminal history check on candidates in states, cities and counties that have passed “Ban the Box” laws.

In case, an employer decides to deny the application of the applicant based on their conviction history in states where the ban has not been effective yet, they will have to do an individualized review of whether or not the criminal history of the candidate would have direct and adverse relationship to the specific job duties. It is thus, extremely important for background screening providers to consult federal, state and local laws when it comes to conducting criminal history check of the candidate before hiring them.

4. Employers will continue to use social media for pre-employment screening

In the recent past, social media background screening have been found sketchy from an administrative standpoint based on misleading, out of context and based on assumptions. But one thing that cannot be ignored is the fact that social media screening 500% more common, than it was a decade ago. Since, there are no laws or EEOC/FRA guidelines that restrict or prohibit social media screening, this trend is only going to continue in the year 2018.

You can expect employers to use new ways of using social media screening in the new year. It can be through third-party businesses requesting reports to exclude information that can create unintentional bias or discrimination. You will also see more and more companies asking their HR representative or employees to not get involved with the screening process while conducting social media check during pre-employment in the year 2018.

5. Background screening firms need to be careful about data breach activities and security of information in the new year

Since background screening providers deal with sensitive information of candidates, it is important for them to ensure complete data security and protection from data breaches. Recently there was a case where a massive data breach incident was reported in the year 2017. The company in question was credit reporting agency Equifax where roughly 143 million Americans’ data was breached.

Taking this into consideration, it becomes important for background screening providers to provide comprehensive data security and protection from data breach in the year 2018. We will see more and more background screening providers undergoing stringent audit checks to ensure that they comply with the high standards of AICPA in the new year. This would ensure that the privacy, security and confidentiality of candidate information is protected, while conducting background screening in the year 2018.

6. Prohibition on the use of salary history questions as a part of pre-employment process

As a part of pay equity movement, many states and cities of the USA have passed the legislation on prohibiting employers from asking salary history questions as a part of the pre-employment process. This restriction is going to have its effects on the background screening process in the new year.

We will see background screening providers to be mindful about ignoring the salary history check in the jurisdictions that restrict the use of salary history questions. More and more states and cities of the USA will continue to support this prohibition in the year 2018. So, in the future, if the background screening is done through reporting agencies, the companies will ask them to exclude any salary history information.

7. E-Verify System will come close to being mandatory for all the USA employees in the year 2018

Legal Workforce Act in the USA hopes to make E-Verify “mandatory and permanent” requirement for the USA employees. This has been done to ensure that the employees hired are legally eligible to work in the country. In the year 2018, we will see more and more background screening providers screen the work eligibility of the candidates in a nondiscriminatory manner through e-verify system.

Conclusion

This is the right time of the year for you to look into the new developments and new legislations related background screening policies and make informed decisions about your own policies. The trends mentioned above can help you in formulating your background screening policies in this year. And most likely you will not be alone in this as more and more employers are set to follow these trends in the coming months.

How Important is Drug Testing for Screening Candidates?

An organization that tries its level best to keep its workplace drug free is the place that consumers trust. According to the 2017 Employment Screening Bench marking Report, drug testing is becoming a crucial aspect of pre-employment background check of employees. Without conducting drug tests for background screening and re screening of employees, organizations can face serious repercussions.

According to 2017 Employment Screening Bench marking Report, drug tests remain a prominent part of the background check process and the percentage of organizations that avail of drug testing services has remained relatively consistent over the last 10 years (66%) with an increase in drug testing in 2012 and 2013 (78%).

Let us now look at the reasons that makes drug testing an important component for screening candidates.

Reduces regular cases of unpunctuality and absence from work duty

Due to chronic use of illicit drugs employees resort to unpunctuality and absence from work duty. This addiction leads to a regular pattern of substance abuse to the point that the employee is not able to perform his regular work duties properly. When the entire life of the employee resolves around the use of drugs or substances, they lose the motivation to continue the career dreams. This results in neglect of daily work duties. Hence, drug testing is very important to select an employee who is sober.

Reduces legal liability of employers

With the help of workplace drug testing, employers ensure a safe work environment for other employees. It assists in identifying those who might be using drugs during the work. Any incident that occurs in the office premise puts the employer in legal problems.

Increases productivity of employees

When the employer ensures safety in the workplace, it results in increased productivity. The use of drugs has a direct impact on the decision-making capability of the employee which also affects their productivity and efficiency. When there is no threat of meeting with accidents in the workplace as a result of substance abuse, employees can perform better resulting in less absenteeism.

Lowers recruitment cost

Employers have to take prompt decision when they find an employee using drugs in the office premise. This often results in firing the employee doing drug abuse. But hiring new applicants also means incurring additional costs. With the help of workplace drug testing, employers can save their time and money by selecting only those candidates who have a sober history.

Increases employee morale

By keeping only those employees who are sober, the rest of the employees who are sober feel that their safety is being valued by their employer.

Useful criteria for hiring

Although several employers might think pre-employment drug testing as a costly affair, it acts as a crucial factor in eliminating those applicants who have a history of drug abuse problems.

Boosts the brand image of the employer

When an employer goes out of the way to ensure a healthy and safe work environment for their employees, it shows their commitment to their employees. This increases the brand value of the organization, thereby inculcating customer trust.

Conclusion

Drug testing has become a necessity in today's workplace. Although, drug testing is not seen as an important part of pre-employment background screening by several organizations, it is a vital step in the overall selection of a good employee that meets the organizational goals. 

Vivek Asrani is a content specialist at cFIRST Background Checks, a leading service provider of background screening services including drug testing services. Vivek writes about the various aspects of recruitment technology.