Background checks are a critical tool for helping employers avoid liability for negligent hiring—but navigating the ever-expanding list of laws (federal, state and local) that govern these investigations can be a daunting task.
Why do employers get sued for negligent hiring? Typically, because they knew or should have known about an employee’s potential to cause harm.*
Background checks don’t tell you who to hire, but who not to hire. If you don’t do background checks at all or don’t do them correctly, you’re likely to become a defendant in a lawsuit.
- Check for potential issues from the start. Carefully review the application with a critical eye. Did the applicant sign the application and release? Identify past employers and supervisors? Did they explain why they left past jobs or have employment gaps?
- Simply the screening process. Make sure your process is intuitive and user friendly. The process can be initiated best in a couple ways:
- Your background screener can generate an email to the applicant with a link that directs the applicant to its website. The applicant will complete the process which should include authorizations, disclosures, and require all pertinent information for the background check.
- Your applicant tracking system (ATS) can usually be integrated with your background screener’s web platform, further simplifying the process.
- Understand limits on credit and salary history inquiries. Credit reports should never be used across the board. Some states prohibit the use of credit reports for hiring decisions, and others have very specific rules on how employers can obtain and use such reports.
Employers should be able to show the business necessity and job relevancy of credit history information.
Additionally, be aware of state and local laws that ban or limit questions about salary history. These laws are meant to combat gender discrimination and other forms of bias that result in pay inequity.
I have seen time and time again how this plays out with numerous stories from our clients. Cutting Edge acquired a nice client because they weren’t doing background checks. The HR Director was very transparent. They hired an overnight clerk who beat up a co-worker. The company ended up settling for just over $400,000, plus attorney’s fees, time away from work, etc. She said, “If we knew this guy’s history, we never would have hired him.”
Questions about any of the above? Call me at (833) 424-3257 or (612) 743-0240.
Parts 3-6 are coming in November!
Industry Updates
Courts in Georgia, Tennessee and Kentucky and throughout the southeast have sustained catastrophic damage from Hurricane Helene. This is impacting not just the courts, but all aspects of background screening include employment verifications, references, and education verifications in this area. Expect delays, this is a developing story.
Midland County, Texas courts are transitioning files to a new system and the public access terminals are down.
California. Many courts including Los Angeles, Orange County, and San Bernardino among many others have redacted birthdates causing delays in confirming identity of records.
For further updates, email Ann@CEBackgroundchecks.com
Where I’ll be in October!
October 10, 2024: https://www.tcshrm.org/events/EventDetails.aspx?id=1870873&group=
October 24, 2024: https://www.tcshrm.org/events/EventDetails.aspx?id=1815240&group=
