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October 2009
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Letter From the President:
While many would argue that America is out of the recession, the latest payroll data shows that 15 million people are unemployed right now and 5 million of them have been out of work for 6 months or longer. The good news is that hiring continues in many pockets of the economy. Job openings exist in fields ranging from the government to renewable energy, to health care. In this issue, I want to explore the use of credit reports by employers. They have become even more controversial in the current economy. I will also take a look at how the government is honing in on employers and the way they are handling E-Verify and I-9's. Both of these topics are timely. Finally, I would like to stress how imperative for us as employers to stay up to date on pending and anticipative legislation in regards to HR Public Policy Issues. The Society for Human Resource Management (SHRM) is a great resource for public policy information. For more details, click here. Thank you for your continued interest in Private Eyes! Sandra James President
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Are Credit Reports Relevant in Today's Economy?
Credit Reports: Controversial Given the Current Economy
Employers who are filling positions where access to money and sensitive information is the norm have traditionally reviewed credit reports as part of their pre-employment screening processes. The practice is important, and weeding out an applicant with bad credit is responsible on the part of the employers that do so.
However, it can be unfair to some prospective employees that are experiencing credit difficulty through no fault of their own. Layoffs, divorce, uncovered medical expenses, business failures, and death in the earning family can all cause negative credit reports. So, credit scores, a risk prediction tool used by most lenders and insurance companies are not designed to predict employee quality or employee performance. Their use for employment screening would be inappropriate. But if you are hiring cashiers or employees that have access to money and/or sensitive information, a credit report should be a part of your screening process. To read more on the subject, click here.
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I-9 Compliance Today
Every employer is obligated to utilize a procedure to insure that a person has a right to work in the U.S. A new employee must complete Section 1 of a Form I-9 no later than close of business of his/her first day of work.
E-Verify use is on the rise, as mandated by state, local, and federal initiatives. It is now more important than ever to develop efficient I-9 policies and procedures, prepare for random audits, and look to the future of electronic employment verification. For more information, click here.
Secretary of Homeland Security Janet Napolitano recently announced the Obama Administration's steps to enhance enforcement of our nation's employment verification laws. These include requiring all federal contractors to verify the work authorization of all new hires and existing employees assigned to federal contracts signed after September 8, 2009, and increased inspections and audits of an employer's I-9 Forms.
To make sure that your company is in I-9 Compliance, call Private Eyes, Inc. today!
Source: "Webcast #4, Employment Verification: New Rules for Federal Contractors and Employers", The Society for Human Resource Management,
www.shrm.org/multimedia/webcasts.
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Call us to Make Sure Your Company is I-9 Compliant
PEI will do a free risk assessment and waive your set-up fee if you call us this month! 877-292-3331.
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About Us
Since 1999, the staff at Private Eyes, Inc. has committed themselves to providing the best pre-employment screening, background investigation, and employment security solutions. Our clients include high-level Fortune 500 companies who are successful in large part due to their understanding the vital importance of hiring the right people and securing their hiring processes. We are also excited to serve small businesses as well. No matter the size of your company, safety should come first.
Our core value is making a safe workplace possible. We provide quality reports quickly and with a human touch. Private Eyes, Inc.stands for excellence. We consistently meet and exceed the needs of our clients. Please call us today to learn how PEI can help you and your HR Team!
Sincerely,
Sandra James
Private Eyes, Inc.
877-292-3331
www.privateeyesinc.com
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