We are rapidly growing as an on-demand workforce and our processes have to adapt to this evolving business environment. Background screening is a critical risk-management tool to avoid hiring an employee that may become a future liability, however, if you’re not using the proper processes, your company may be at risk. If you happen to be using a third party to screen your applicants, make sure you and your background screening company abide by the Fair Credit Reporting Act (FRCA). All full service background screening companies strictly abide by these regulations and help ensure your company is compliant in every procedure and serve to protect both the applicant and employer.
Your business is diligent in creating and ensuring an organized, safe working environment and not only employees but customers have the right to expect the same protection. Some industries are now experiencing a high volume of negligent hiring claims that makes an employer potentially liable for any dangerous actions of an employee. In most cases an employer is deemed negligent in exercising full background checking activities that would have revealed all past issues for violence from their applicants.
Key steps to help mitigate your risk of being involved in a negligent hiring lawsuit:
1~ Before ordering a background check on your applicant, you must inform the applicant, in writing, that a consumer report may be obtained for employment purposes.
2~ The applicant has to give written consent to do a background check and has to be provided a copy of the “Summary of Your Rights under the Fair Credit Reporting Act.”
3~ Before making an unfavorable employment decision, provide a pre-adverse action disclosure notice to your applicant. This is a preliminary notice to indicating information contained in his/her background screening report, if accurate, may cause employment to be denied. A copy of the consumer report must be provided, so the applicant has the opportunity to see the report that contains the information that is being used against them. If the report is inaccurate or incomplete, the applicant now has the opportunity to contact the Consumer Reporting Agency to dispute what’s in the report.
4~ If you decide not to hire the applicant or to withdraw the offer of employment, you need to take one final step and that is to provide the Adverse Action notification. These two notices are required to give the job applicant maximum opportunity to correct any incomplete or inaccurate reports that could affect their chances of employment.
In addition to these steps to comply make sure your company follows all local and state background screening regulations as they may be more stringent. And remember, a good background screening company will be able to handle all these requirements and provide you with the templates and documents containing the required language to keep your company compliant with the FRCA.
If you have any questions or concerns regarding these steps, please contact us for a free review of your screening process or visit our website for more information at www.accucheckscreening.com.
For the complete text and rules of the Fair Credit Reporting Act, please visit: Fair Credit Reporting Act
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