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Background checks becoming industry standard
Our last update spoke about the hot topic of immigration and how different parts of the country are utilizing E-Verify to manage a legal workforce. This update is highlighting another topic that is mentioned every night on the news...Background Checks. An article written this week outlines the increasing trend of employers using background checks as part of the onboarding process.
The article, "Background checks grow in popularity", was originally published in the St. Louis Post-Dispatch and this week, April 7, 2013 in the Myrtle Beach, SC Sun News. As the economy improves and companies add to their ranks, many are taking the opportunity to revamp their hiring processes. And, with many people still out of work and vying for a limited number of jobs, employers can be pickier than ever. The sharp rise in the number of checks isn't due to increased hiring activity, but instead, employers are increasingly aware of the high costs when they don't pre-screen employees. According to Philip Brandt, AAIM Employers Association President, "Hiring people costs money. To get it right the first time is what employers are more focused on now".
An added danger is the greater exposure companies are faced with when a high-ranking employee is caught creatively adding to their resume. The article mentions Scott Thompson, former CEO of Yahoo! Inc. Mr. Thompson is one of the better known resume artists for his addition of a college degree that he had never earned. Dustin Deschamp, Director of HR for the St. Louis Zoo, added "It is becoming almost industry standard to perform background checks and drug testing because of the liability issues you're facing". Background checks include employment and education verification, driving records and criminal histories.
The U.S. Equal Employment Opportunity Commission provided new guidance last April that said the use of some background checks in hiring can violate prohibitions against employer discrimination in Title VII of the Civil Rights Act. For example, a company could be in violation of Title VII if it uses criminal history information for applicants in different ways for different groups, based on applicants' race or national origin. Mr. Deschamp states "We don't automatically disqualify anybody based on what we see in background checks. We want to make sure we are doing everything we can to make sure the zoo is as safe as possible for visitors and co-workers".
Fact: According to the Society for Human Resource Management, 80% of HR Professionals use pre-employment background screening.
NEW IN 2013
*January 1, 2013: Recent changes to the Fair Credit Reporting Act have shifted enforcement of the law from the FTC to the CFPB. New forms must be used immediately.
*March 8, 2013: The US Dept. of Labor released revised model Family and Medical Leave Act (FMLA) forms to administer federal FMLA leave and a new poster. New forms and poster must be used and displayed immediately.
*March 8, 2013: The USCIS released a revised Employment Eligibility Verification Form I-9. Employers can begin using immediately but have until May 7, 2013 to remove older version I-9.
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