Skip to main content

Valuble Information for Everyone

New Jersey Court Approves $870,000 Employment Background Check Settlement


                           
Background Check Consent
There have been a flurry of class action lawsuits brought against employers for failure to comply with the Fair Credit Reporting Act (FCRA). And by no means are these cases for the feint of heart. Typically, we’ve seen settlements range from several hundred thousand dollars to tens of millions.
Well, apparently not everyone has gotten the memo, so if you are concerned about maintaining compliant background check practices, you’ll want to read on.
Last week, a New Jersey federal court approved an $870,000 class settlement against a trucking company who didn’t think they needed to obtain consent from their job candidates to conduct an employment background check. Not only didn’t they have consent, but clearly accuracy wasn’t important either; the lead plaintiff wasn’t hired because his criminal background check incorrectly indicated that he was a convicted felon.  Now that’s a daily double and a sure-fire way to get sued.
To be fair, I am certain that the trucking company didn’t set out to violate anyone’s rights.
“We were advised that some of the procedures that we were following did not follow the protocol of the Fair Credit Reporting Act,” Thomas Connery, chief operating officer of New England Motor Freight, told TT. “We have since identified and corrected these deficiencies in our processes.”
This is an expensive lesson to learn and one we’d like to review with our readers so that they don’t end up in similar circumstances.

So let’s review the requirements for a compliant background check as it relates to this case:

  • The FCRA requires a signed authorization and disclosure from the applicant, sometimes referred to as a “Consent” form. No matter what you call it, the form must consist solely of the required authorization and disclosure—no extraneous information can be attached or included.
  • The authorization and disclosure form(s) must be executed and signed by the applicant prior to requesting or conducting a background check.

Here are some helpful tips for employers looking to avoid similar litigation:

  • Make sure that you have applicants sign an authorization and disclosure, documenting written consent for the background check. Electronic and paper forms are both o.k.
  • Confirm that the form is signed prior to ordering the background check. Provide a mechanism for the applicant to date the form.
  • Consult with legal counsel or an expert on what language can be included on the form. While “authorization” and “disclosure” are two separate requirements under the FCRA, it’s o.k. to combine those two requirements on one form.
  • Don’t include extraneous information, like a disclaimer, release of liability, or acknowledgments on the form.
  • Consider state requirements that may have specific rules for the authorization and disclosure form.
  • Bring together the different stakeholders within your organization to make sure you are getting the background screening process right. The HR department, recruiting, procurement, legal counsel, and information technology departments may all have a stake in this process.

Comments

Post a Comment

Popular posts from this blog

Workplace Violence...Are you and your staff protected??

Workplace Violence: It Can Happen Anywhere HUMAN RESOURCES ARTICLE 08/04/2016 Varying degrees of workplace violence can happen anywhere, and at any time. According to  OSHA , nearly 2 million American workers report having been victims of workplace violence each year, yet many more cases go unreported. While there’s no standard or regulation applicable to workplace violence, OSHA does have a  General Duty Clause  that it enforces, which states among other things that each employer “shall furnish to each of his employees employment and a place of employment which are free from recognized hazards that are causing or are likely to cause death of serious physical harm to his employees.” While workplace violence may happen anywhere at any time, it may also be instigated by anyone. Violent behaviors may come from a white-collar employee, a blue-collar worker, or a third party–such as customers or an employee's partner. What are some common factors or wa...
1 comment
Read more

An uptick in Hiring, Importance of Background Screening

An uptick in Hiring, Importance of Background Screening -KG April 9, 2015 Although some states have changed their laws around medical and recreational marijuana use, more than half of 3,119 HR professionals surveyed said their organizations do not accommodate marijuana use in the workplace or plan to do so in the next year. That is among the findings of HR 2015 Employee Background Screening Benchmark Report, conducted in October and November 2014 with HR professionals responsible for employment screening and recruiting. “This is going to be one of the hottest topics of the year in terms of background screening: drug screening,” said Rachel Trindade, vice president of marketing at HR, a provider of employment background checks, drug and health screenings, and Form I-9 employment verification. Twenty-three states and the District of Columbia have legalized the possession of marijuana for medical use, and four states and the District of Columbia have legaliz...
Post a Comment
Read more
Monday, May 6, 2013 4 Reasons Why Small Businesses Need to Use Background Checks Many Small Business Owners think Background Checks are just for “the big boys”. Maybe it is because as a small business owner you mostly hire “people you know”, or you think that Background Checks are just “too expensive” for your Small Business. Neither of these arguments are true. Using Background Checks is actually a cost-effective and sound business strategy for any Small Business. Here are 4 Reasons Why Background Checks and Small Business make Great Partners: Small Businesses have a Limited Budget for Hiring and Training: Most Small Businesses operate on a tight budget. Your resources are split among the many costs associated with running your businesses - payroll, insurance, utilities, and more. Wasting any of your funds on hiring and training the wrong candidate is bad business. Using a Background Check as part of the hiring process can help eliminate some o...
Post a Comment
Read more