fcra- fair hiring for employers
TRANSCRIPT
FCRA: Are YOUR Employment Screening and
Background Checks FAIR for your Applicants?
Presentation By::
HUMAN RESOURCE PROFILE, INC.CINCINNATI, OH
Jane McFadden
Client Advocate
©Copyright 2015 HR ProFile, Inc. All Rights Reserved
Paid Out Millions of Dollars in Lawsuits
Can you AFFORD to end up on this list?
©Copyright 2015 HR ProFile, Inc. All Rights Reserved
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©Copyright 2015 HR ProFile, Inc. All Rights Reserved
Jane McFadden- Client Advocate
Education and Outreach of
updates, products, and services
John Robinson- Compliance Officer
Stay up to date on latest laws and legislation to help
keep our clients compliant.
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Recent Class Action Cases
What is the FCRA
How the FCRA Regulates
Employers
Clear Guidelines for Compliance
Questions
©Copyright 2015 HR ProFile, Inc. All Rights Reserved
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Credit Bureaus
Data Furnishers
Consumer
Reporting
Agencies (CRA’s)
Employers
Landlords
Criminal Records
Credit Checks
Driving Records
Violent Sex
Offender Search
Employment
Verification
Education
Verifications
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No Way to Contest Information
Weren’t able to see the report
No Reason for Denial Needed
No Recourse- Legal or
Otherwise
Protection for Consumers
Fairness for Consumers
Win-Win for Company and
Candidate
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Federal Law that regulates the use of
personal information by
private businesses.
Federal Consumer
Protection Statute.
Minimum Standard for
Employers
“Furnishers”- CRA’s
“End-Users”- Employers
“Consumers”- Applicants
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Permissible Purpose
Certification to CRA
Disclosure and
Authorization
Adverse Action
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Anyone who has access to these reports is considered an end user,
staffing agencies and employers alike.
Protect Consumer Rights
Service Agreement-Reason for Record Search
Intent for Use-Employment Purposes
Section 604 of FCRA
§ 604[15 U.S.C. § 1681b]
Certification:
Our Clients are asked to use our approved forms.
Specify Intended Use and Certifies Consumer
Report will not be used
for any other purpose.
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They might be simple,
But we make them easy.
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1. Disclosure
2. Authorization
3. Pre-Adverse Action
4. Waiting Period
5. Adverse Action
The applicant MUST be informed that a consumer report is going to be obtained.
Understand this information will be used to make a hiring decision.
“Stand Alone” Document, NOT in the application.
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Was information found that would disqualify the
applicant?
No
Hire the Applicant
YesFollow
Adverse Action
Pre-Adverse Action Letter
Pause
Adverse Action Letter
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Informs the applicant
something came back that
could effect their
employment
Disqualifying Information
found on the consumer
report
Applicant Receives:
Pre-Adverse Letter
Copy of Report
Summary of Rights
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Let’s hear what the
Candidate has to say.
A “Fair Shake” to tell
their story
5 Days Deemed
Reasonable
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Individualized Assessment
AND/OR
Targeted Screening
In Order to Establish an Affirmative
Defense you must:
To be used when:
Rejecting
Applicant
Terminating
Employee
Denying A
PromotionDisqualifying Information can be found in ANY part of
the Consumer Report
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Informing the Candidate
you are NOT Hiring Him or
Her Based in Whole or in
Part on their Consumer
Report.
Candidate
Ready to Start?
Hand Searches
Common
Name
Identity Theft
Lying on the
Application
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You Won’t Know Unless You Follow Adverse Action
FCRA- Minimum Guidelines Must
ALSO follow EEOC, Federal, and
State Mandates
EEOC Standards
Job Relatedness
Business Necessity
Time Passed
7 Year Search- Best Practice
Accuracy of CRA
Protecting the Consumer
Disclosure and Authorization
Separate from Application
Clear and Conspicuous Notice
Stand Alone Documents
No Release with Disclosure
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Check ALL Documents with Legal Counsel for
FCRA Compliance
Review all documents provided by CRA, follow
CRA’s Guidance and Recommendations
Keep Documents on Hand! HRP
Recommendation: 7 years if hired, 5 years if
not hired. § 618. Jurisdiction of courts;
limitation of actions [15 U.S.C. § 1681p]
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Disclosure Stands Alone
Review Adverse Action
Process
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Give Disclosure form 1st, here are your
rights IF you sign the Authorization.
Before taking any Adverse Action, make sure the
candidate has a copy of Consumer Report AND
Summary of Rights
Wait 5 days minimum before taking Adverse Action
Make sure in your Disclosure and Authorization the
term “Consumer Report” is used
‘I have been informed in writing and acknowledge that a “Consumer Report” and/or “Investigative Consumer Report” May be obtained on me for employment purposes.’
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Research your CRA, How do they do what they
do? Not all background checks are the same.
Don’t leave it Just to HR! Everyone’s responsibility
to know the laws/requirements.
Have a system to record personnel decisions.
Document why applicant was accepted or
rejected.
Record EVERYTHING! (In your Policy)
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We’ll be happy to take
some time and answer
your questions.
Jane McFadden
Client Advocate
T
h
a
n
k
Y
o
u
!
©Copyright 2015 HR ProFile, Inc. All Rights Reserved
About HR ProFile, Inc.
HR ProFile, Inc. is a full-service, trusted, industry leader with
over 20 years of experience in all areas of Human Capital
Management and Employee Screening. We provide
Background Checks, Drug Testing, Criminal & Court Checks,
& Reference and Education Verification to clients in all
industries Nationally and Internationally. We partner with our
clients to ensure best hiring practices and Fair Credit Reporting
Act (FCRA) compliance to HR professionals who outsource
employee screening. HR ProFile provides market leading
innovations, customized and scalable solutions and pricing, as
well as unparalleled personal and professional customer
service. Visit us at http://www.hrprofile.com/